New research from CBRE says that the Wellington commercial property market has a reduction in vacancy and rental pressure is continuing to rise, with more occupier demand expected to support a strong period of growth for the remaining year.

• Wellington Viewpoint report reveals office yields have firmed 18 basis points year on year for the first quarter of the office sector, retail 10 basis points and industrial 35 basis points. In the office sector overall vacancy fell to 7.9 per cent and prime office to just 1 per cent.

• The report says leasing after last year’s Kaikoura earthquake was seen to be a large contributing factor although some leases were secured pre-earthquake. The report confirms there was still a total of $207m in transactions over $5m over the six months in the second half of last year.

• Richard Carr, research analyst with CBRE Wellington has said “The office market is desperate for higher quality stock than what is available.” “Elevated investment levels are expected to continue in Wellington from both domestic and international sources, due to the relatively high returns compared to Auckland. While credit has become difficult to acquire, there is still plenty of liquidity in the market which is looking obtain quality assets.”

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