Right royal office leasing opportunity at 9 Princes Street
Right royal office leasing opportunity at 9 Princes Street
22 February 2014
Auckland, 22 February 2014 - At a time when an upbeat economic outlook is driving positive office property demand, and low building supply underpins forecasts of reducing vacancies in the sector, one of New Zealand’s most recognisable office buildings, the current Fonterra headquarters at 9 Princes Street in Auckland, is now available for lease.
The 16-level building is being marketed for lease by Matthew Hockey and Campbell Pritchard of CBRE New Zealand exclusively on behalf of Auckland Terra Limited. Tenant commitment is being sought from late 2016/early 2017, after Fonterra’s current lease expires.
Matthew Hockey, Associate Director Office Services for CBRE New Zealand, says the distinctive building offers significant potential through its combination of size, fit out and price point.
“This property will be ideal for organisations seeking office space in excess of 3,000sq m. As a highly recognisable part of the Auckland CBD skyline, it is connected to the best of Auckland’s CBD and is well known as one of the country’s premium business facilities.
“We’re already talking to potential tenants who see the opportunity presented by 9 Princes Street, particularly when there are limited leasing options for other large offices around the city. With a price point below that of newly developed buildings, it offers occupiers a powerful combination of quality, size, prominence and real value.”
Built in 1990 by Fletcher Construction, 9 Princes Street occupies a 2,504sq m site with frontage to Princes and Bankside Streets.
The building comprises 16 floors, including ground floor atrium and retail areas, with 12 levels of offices above, providing 10,541sq m of net lettable area, although the building can be extended to approximately 12,500sq m of net lettable area.
There are open decks on a number of levels, maximising the views that the ridge position provides, a 99sq m crèche facility and 3 basement car park levels that provide a total of 148 covered car parking spaces.
The main entry foyer is a three-level atrium that was retained from the façade of the Grand Hotel. The foyer provides access to the ground floor amenities, which include conference facilities and a café.
The building was externally refurbished and waterproofed in 2009 by Fletcher Construction, with an internal refurbishment - including a fit out for the lobby area café and balconies upgrade - then completed in 2010.
Campbell Pritchard, Associate Director Office Services for CBRE New Zealand, says that 9 Princes Street has all the contemporary amenities for a large corporate or several smaller businesses looking to operate from a strategically located position in the CBD.
“Contiguous floor plates of just under 1,000sq m will provide flexibility for a single anchor tenant or multiple occupiers looking to maximise their use of space. In addition, the quality of the fit out means that the building will be ready for occupiers to move straight in.
“With easy onsite parking and a café, as well as a number of key amenities such as childcare, hotels and restaurants nearby, 9 Princes Street really is the whole package. The opportunity for naming rights and signage is the cherry on top.”
Pritchard adds that with several outdoor deck facilities, corporates looking to host staff or client functions can utilise ample outdoor entertaining areas without having to go offsite.
“The building is in excellent condition, but the opportunity exists for redevelopment or additional upgrades in the future, which is likely to boost the appeal of this top spot even further.”
Pritchard explains that the landlord of the Princes Street property has an excellent track record, and with a first-rate building services specification, the office block is well-maintained and serviced, which adds considerable benefit to tenants who want to keep their focus firmly on growing their business.
Hockey says that 9 Princes Street is in a prominent ridge position in the heart of Auckland’s legal and financial district.
“Location-wise, you couldn’t ask for a better-positioned office. Not only will tenants be close to their clients and suppliers, surrounded by a number of prominent office towers, but the building also has a high onsite parking ratio for the CBD, which is a valuable feature when attracting staff and arranging client visits.
“In addition, with close, easy access to all the major motorways, travelling is easy. The Britomart transport hub is also just a short five minute walk away from Princes Street, as are a wealth of shops, entertainment venues, supermarkets, gyms and business headquarters in nearby Shortland Street, High Street and Queen Street.”
Hockey says that 9 Princes Street is one of the few existing Auckland CBD buildings that can offer a large amount of good quality space at a reasonable rental price, particularly when compared against the cost of newly-developed space.
“Many larger corporate tenants in the CBD and city fringe will be attracted to the Princes Street property. There are around 100 businesses in and around Auckland who need more than 3,000sq m for their operations, so we know that 9 Princes Street will hit the sweet spot for many potential tenants looking to make the move to a new office location in the next few years.
“With a limited amount of large office spaces in Auckland due to few new builds and strong tenant demand, the high profile property presents a remarkably attractive opportunity for corporates looking for new office space.”
Pritchard says that positive demand for office space and low supply underpins CBRE’s forecast of reducing vacancies.
“The market is stabilising and has seen a positive turnaround in the past two years, so we are expecting that the positive office occupier market conditions will continue to strengthen.
“Further economic growth will support positive net absorption, and with the supply pipeline looking pretty sparse over the next few years, our forecast of reducing vacancy levels in Auckland’s office CBD market looks set to endure.”
He notes that CBRE has been particularly active in the Auckland office leasing market recently, having successfully completed the pre-commitment of 5,200sq m to AECOM at 8 Mahuhu Crescent and the lease to Auckland Council for 11,000sq m at 8 Hereford Street.
He says: “8 Mahuhu Crescent and 8 Hereford Street represent two of the larger transactions recently completed in the Auckland leasing market - you might even say that 8 is our lucky number!
“We know that our leasing team’s success in the market is about understanding tenants’ unique needs in the way of office space, what office owners desire from their buildings, and how we can best connect those groups with Auckland’s top office properties.”
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.