North Shore office rents are up to $300/mÂ² and cap rates as low as 6.5% as stock remains scarce against high demand.
Bayleys Real Estate said in its latest office market report prime office rents on the North Shore ranged from $230-300/mÂ², secondary from $180-200/mÂ².
The agency said investment demand was strong, with little investment stock available. Tenant demand was steady in both segments, with rental rises forcast over the next 12 months for the prime segment.
Capitalisation rates in the prime segment are in the range of 6.5-8%, in the secondary segment 8-9.5%.
Bayleys said North Shore office vacancy got down to 7% in January from 10.8% a year earlier as a result of strong leasing activity & a decline in speculative development.
It said vacancy should stay below 10% as tenant inquiry remained strong, supported by a number of start-up businesses, expansion by local companies & relocation to the Shore.