NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

New global retailers, hot capital market tipped by experts

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
2 Jan, 2015 04:00 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The number of big commercial property deals seen in Auckland in 2014 are unlikely to be repeated this year, says one expert. Photo / Brett Phibbs

The number of big commercial property deals seen in Auckland in 2014 are unlikely to be repeated this year, says one expert. Photo / Brett Phibbs

Topping the number of big commercial property deals of 2014 will be hard and lower-grade office blocks are more likely to be traded than the top-end buildings, one expert says.

Justin Kean, JLL's Auckland-based director of research and consultancy, said nothing could outdo the past year.

"International capital will still likely come into the market in 2015 however it will be less 'blockbuster' in nature with there being few opportunities left for the $1 billion type deals that we have seen in 2014," Kean said.

"Rather we think in 2015 we will start to see the market focus on secondary assets, assets with higher yield profiles and assets where there is considerable work to be done.

"We are already seeing this with buildings such as 22 Fanshawe St and 125 Queen St and would expect more to follow.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"We believe that 2015 will likely see new international retailers enter the market. This should have a very positive impact on retail rents, especially prime rents.

"Very few international retailers have entered the NZ market since 2007, however with Australia coming out of the doldrums and with the NZ economic story persisting through 2015 we should see the sector welcome high profile new entrants," he said.

Office rents will see growth and tenants will be expected to pay more.

Advertisement
Advertise with NZME.

"This means that owners of especially prime assets will likely benefit and large tenants, if they have not already done so, will need to put in place a strategy if they have an expiry coming up in the next few years.

"Secondary rents are unlikely to move with the same gusto however with there continuing to be some vacancy lag in secondary space over prime," he said.

"We think that 2015 will be a year in the sun for Wellington.

"With stock, yields and demand tight in Auckland there is really only one second alternative to the Auckland institutional market - Wellington office.

Discover more

Opinion

Editorial: NZ economy is in a good place and thriving

01 Jan 12:07 AM
Economy

Bull run reaching end of its tether

02 Jan 04:00 PM
Economy

Brian Fallow: Forecast largely fine, but clouds loom

02 Jan 04:00 PM
New Zealand

New precinct aims for funky ambience

27 Jan 04:00 PM

"So just as this year has been a strong year for Wellington we would expect next year to be even better. Suggest that next year will be a record year for transactions in Wellington both in prime office and industrial," Kean said.

However, Chris Dibble, national research manager at Colliers International in Auckland, said the scene was still set for new levels of activity.

"Now that New Zealand is perceived as a growth location, not just a stable market, foreign and domestic investment activity will ramp up even further, resulting in a record breaking 2015 in terms of sales numbers," he said.

Industrial investment prices would rise, as syndicators and owner-occupiers, drawing on low and stable debt costs, joined domestic investor groups. Offshore parties will struggle to find opportunities of enough substance, he said.

Housing could be in for a big boost in 2015, with Dibble predicting market players to find new ways to package housing development including new rental structures and residential funds.

Auckland's CBD and its outer edges would go further to the west.

Advertisement
Advertise with NZME.

"Wynyard Quarter - the new western edge of the CBD - will thrive as the benefits of quality urban design are demonstrated: Westgate will provide retailing equilibrium as the new centre provides quality retailing in the west: and Westfield, now Scentre, use their new Singaporean partners to act on expansion opportunities," Dibble said.

Fluctuations in the fortunes of the forestry and dairy sector would not slow demand for property, he said, and unprecedented levels of demand could come from overseas for substantial investment opportunities.

"This investment will give a boost to innovation in primary industries including increased efforts to reduce land and water pollution," Dibble said.

Christchurch businesses would commit to rents they didn't think they could afford, by virtue of a better understanding of workplace metrics and increased density made possible by good design of new buildings," he said.

"People need property. Rising populations mean rising demand in all sectors. Where this is absent values will remain flat or fall.

"Investors like growth and will need high returns to persuade them to invest in low or no growth locations," he concluded.

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Business

Premium
Opinion

Opinion: Why stagflation fears are back on the radar

22 Jun 04:00 PM
Premium
Media Insider

David Seymour v John Campbell: Act leader turns camera on broadcaster

22 Jun 10:07 AM
Premium
Opinion

Liam Dann: The upside to this painfully slow economic recovery

22 Jun 07:00 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Opinion: Why stagflation fears are back on the radar

Opinion: Why stagflation fears are back on the radar

22 Jun 04:00 PM

ANZ survey shows over 50% of NZ firms plan to raise prices.

Premium
David Seymour v John Campbell: Act leader turns camera on broadcaster

David Seymour v John Campbell: Act leader turns camera on broadcaster

22 Jun 10:07 AM
Premium
Liam Dann: The upside to this painfully slow economic recovery

Liam Dann: The upside to this painfully slow economic recovery

22 Jun 07:00 AM
$175k in costs awarded in $10 million Auckland mansion stoush

$175k in costs awarded in $10 million Auckland mansion stoush

22 Jun 05:32 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP