WELLINGTON: City Development (Part 1)

This Bayleys Report on Welly's new Office Building ...

Waterloo Tower suggests there's alot more potential for more new Office Buildings , the Vacancy rates for A Grade building is like close to Zero

Bayleys Leasing Space in New Wellington Office Building
Eight prospective tenants are showing strong interest in leasing space in a new $56 million office tower proposed for a block of land near the railway station in central Wellington


Rohan Hill, Wellington director of exclusive leasing agents Bayleys Realty Group, says the 13-level WaterlooTower on Waterloo Quay has already attracted enough tenants to the negotiating table after a short leasing campaign to suggest that the building will fill up quickly.


“We are currently in serious negotiations with eight tenants, with an even split between the public and private sectors.”


When completed, WaterlooTower will have 11 floors of office space of approximately 1005 square metres each, 658 square metres of ground floor office or retail showroom space and parking for just over 50 cars. Most levels will extend from Te Papa to Kaiwharawhara and provide expansive harbour views.


The building will be located adjacent to Platform 9 of Wellington’s central railway station and next to the city’s main bus terminal.


The office tower is being built by Wellington development company Lace Bark Holdings in conjunction with Auckland-based Manson Developments, one of New Zealand’s largest privately owned property developers.


The two companies have jointly completed more than $30 million work of commercial and retail projects in Wellington in the past three years. Manson Developments has also recently completed the $140 million, 30,000 square metre Lumley Centre on the Northern Roller Mills site in downtown Auckland, the city’s newest office tower.


Designed by Archaus Architects Ltd, WaterlooTower features curved walls with extensive glazing to maximise natural light into the interior. Mr Hill says in line with the current trend towards more sustainable, environmentally friendly buildings – which is an important consideration for Government departments, particularly- the use of natural elements and design features will reduce energy demands on the air-conditioning and lighting systems.


“The shape and the orientation of the building has been carefully planned to enhance its environmental efficiency, with elliptical floors to maximise natural light and views.”


Mr Hill says Bayleys’ leasing campaign for the office tower, which initially attracted 44 potential tenants, is a clear indication that Wellington is short of good quality, new office space.


“There is demand for space right across the board, especially from the public sector. Our campaign highlighted 28 government sector departments and 16 companies who would consider moving premises if the opportunity stacked up,” he says.


“Government tenants in search of better layouts, building services and work environments are essentially driving the Wellington CBD market.”


TelferYoung Research recently showed that Government-occupied space increased by 9.42 per cent in the year to December 2005 and stood at 37.22 per cent of the total central business district office space.


Premium space makes up only 12 per cent of the total office space in Wellington and is sitting at less than 1% vacancy. Good quality space had a vacancy rate of 5.89 per cent in December, the lowest in eight years.


“With virtually no premium grade vacancy available in the Wellington central business district core, we are very confident that WaterlooTower will be fully tenanted within a reasonably short time frame,” says Mr Hill.


Naming rights are also being offered on the building which benefits from its high profile location next to the railway station and WestPac Stadium and with an average of 33,000 cars passing a day.



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