Commercial property OPEX survey shows rates highest cost

Compared to the figures for 2005, rates have increased significantly in both Auckland and Wellington, while Hamilton office rates were the lowest in the country at $7.82/m2.

In Auckland, rates for CBD office properties were up 12.8% to $34.37/m2 (compared to $30.48/m2 last year), while the median non-CBD office rates were $17.84/m2 (up from $17.66/m2). Wellington CBD office rates were up 9.3% to $24.46/m2 (compared to $22.37/m2 last year). Median Christchurch CBD office rates were $10.18/m2.

The 2006 survey investigated operating costs in 125 office buildings and 56 shopping centres with a total rentable floor area in excess of 1.71 million square metres.

Auckland CBD office buildings recorded a median total operating cost of $87.44/m2, a sizeable increase from last year’s $78.49/m2, making this category the most expensive in the country. The median cost for Wellington CBD office properties dropped significantly to $71.01/m2 from $78.91/m2 last year.

Auckland non-CBD office buildings recorded a very slight increase, up to $60.81/m2 from $59.93/m2 in 2005.

The median cost for Christchurch CBD office properties was $46.08/m2, while the median cost for Hamilton office buildings was $44.65/m2.

Both Auckland non-CBD and Wellington CBD office buildings have experienced significant decreases in insurance costs this year compared to 2005, while the costs for Auckland CBD Office buildings have remained constant.

The median Wellington CBD office insurance expense was $9.65/m2, a 27.1% decrease from last year’s figure of $13.24/m2. This continued to be a significant cost for Wellington properties as the third highest expense of all categories tracked.

The median Auckland non-CBD insurance cost was down 17.2% to $3.13/m2 (compared to $3.78/m2 last year), while the median cost for Auckland CBD offices showed no movement, remaining at $4.78/m2.

The median insurance cost for Hamilton office buildings was $4.16/m2, while in Christchurch, insurance ranked as the third highest category, tracked at $5.36/m2.