KEY POINTS:
The economic downturn has caused "a substantial number" of large Auckland building projects to be put on hold.
Zoltan Moricz of consultants CB Richard Ellis said 50,000sq m of commercial and industrial building work in Auckland's CBD had been shelved.
He said the CBD had the most development
activity on - just over 190,400sq m, of which 82,700sq m was now under construction.
"A substantial number of projects is on hold especially in the CBD (50,000sq m) and CBD fringe (59,800sq m) due to the difficult market which developers are currently facing," he said in his Auckland development monitor.
Some of the big projects involved include Cooper & Company's waterfront hotel, the Soho Square project in Ponsonby and Rhubarb Lane in the CBD, although Kellands is still marketing it. That site goes up for auction next Wednesday.
Moricz has classified projects according to:
* Long-term potential, meaning they could be developed in periods or over time.
* Early feasibility: only vague plans for development.
* Planning pre-building consent: projects which have clear plans and the intention is to build.
* Planned building consent issued: construction likely to be imminent.
* Under construction: earthworks have started.
* On hold: buildings planned but not proceeding as originally envisaged.
"Our Auckland databases have captured 212 new developments in the Auckland market across the industrial and office markets.
"Of these, 66 are in the long-term potential or early feasibility stages and do not have definite plans in the near future," Moricz said.
"The remaining 146 new developments range in stage from projects that are planned but have not yet received building consent (39), to projects that are planned and have a building consent (11) through to projects that are currently under construction (65).
"There are a large number of projects on hold making up the remaining 31 developments."
His report was produced for building owners, investors, occupiers, developers and their consultants to help them to make decisions.
About 69 per cent of the office buildings and 85 per cent of industrial buildings have precommitments by tenants.
Moricz tracked industrial projects in the East Tamaki area where 40,800sq m of new building work was planned, Penrose where 26,500sq m was planned and Airport Oaks with 13,700sq m.
These areas have good transport links and are near Auckland International Airport and the Southern Motorway.
"Many of these projects require precommitment before commencing," Moricz wrote.
"Speculative construction is expected to be limited to multi-unit developments. A smaller percentage of developments are on hold in the industrial sector than in the office sector."
AUCKLAND'S FUTURE?
* Developers have 212 projects in the pipeline.
* 66 are without definite plans.
* 39 planned but without consent.
* 11 have building consent.
* 65 now under construction.
* 31 have been put on hold because of downturn.
