Business property vacancy rates CBD office vacancy rates Retail vacancy rates Industrial vacancy rates Trends in CBD office vacancy rates Trends in retail vacancy rates Trends in industrial vacancy rates indicate whether the current indicate whether the current indicate whether the current supply supply of office space is sufficient supply of retail space is sufficient of industrial space is sufficient to to meet demand or whether it is to meet demand or whether it is meet demand or whether it is growing constrained becoming constrained becoming constrained Prime vacancy rates in the Retail vacancy rates rose in most Wellington’s industrial vacancy rates Wellington CBD remain relatively major retail precincts in the fell in 2014 and 2015. This indicates low and have fallen since 2014. Greater Wellington region in 2016. that there is growing demand for Secondary vacancy rates for This suggests that the supply of industrial space or, alternatively, buildings have also fallen retail space is not becoming more conversions of vacant industrial since 2012, although they remain limited relative to demand. space to other uses. considerably higher than in the Retail vacancy rates varied Industrial vacancy rates rose mid-2000s. significantly throughout Wellington significantly after the 2008 Global It is likely that vacancy rates will – they were highest in Lower Hutt Financial Crisis and remain at continue to be low in the short and Upper Hutt and lowest in elevated levels relative to the term while Wellington recovers Petone, Paraparaumu, and the This indicates that overall from the shock to supply caused by Wellington CBD. This indicates industrial space capacity is likely to the earthquake. spatial variation in retail demand meet current demand, albeit with that may contribute to localised the potential for mismatches for Price information on trends in supply shortfalls. some types of industrial sites. office rents could be used to supplement this data, as rising Price information on trends in Price information on trends in rents provide additional evidence retail rents could be used to industrial land prices could be used of a lack of supply. supplement this data, as rising to supplement this data, as rising rents provide additional evidence land prices provide additional of a lack of supply. evidence of a lack of supply and/or competition from retail and housing uses. Part six: Using price efficiency indicators This part provides guidance to local authorities on meeting the requirements of NPS-UDC policy PB7. It explains the price efficiency indicators in the dashboard on the Ministry of Business Innovation and Employment’s website, and outlines how they can be used.
Business property vacancy rates CBD office vacancy rates Trends in CBD office vacancy rates indicate whether the current supply of office space is sufficient to meet demand or whether it is growing constrained Prime vacancy rates in the Wellington CBD remain relatively low and have fallen since 2014. Secondary vacancy rates for buildings have also fallen since 2012, although they remain considerably higher than in the mid-2000s. It is likely that vacancy rates will continue to be low in the short term while Wellington recovers from the shock to supply caused by the earthquake. Price information on trends in office rents could be used to supplement this data, as rising rents provide additional evidence of a lack of supply. Retail vacancy rates Trends in retail vacancy rates indicate whether the current supply of retail space is sufficient to meet demand or whether it is becoming constrained Retail vacancy rates rose in most major retail precincts in the Greater Wellington region in 2016. This suggests that the supply of retail space is not becoming more limited relative to demand. Retail vacancy rates varied significantly throughout Wellington – they were highest in Lower Hutt and Upper Hutt and lowest in Petone, Paraparaumu, and the Wellington CBD. This indicates spatial variation in retail demand that may contribute to localised supply shortfalls. Price information on trends in retail rents could be used to supplement this data, as rising rents provide additional evidence of a lack of supply. Industrial vacancy rates Trends in industrial vacancy rates indicate whether the current supply of industrial space is sufficient to meet demand or whether it is becoming constrained Wellington’s industrial vacancy rates fell in 2014 and 2015. This indicates that there is growing demand for industrial space or, alternatively, conversions of vacant industrial space to other uses. Industrial vacancy rates rose significantly after the 2008 Global Financial Crisis and remain at elevated levels relative to the This indicates that overall industrial space capacity is likely to meet current demand, albeit with the potential for mismatches for some types of industrial sites. Price information on trends in industrial land prices could be used to supplement this data, as rising land prices provide additional evidence of a lack of supply and/or competition from retail and housing uses. Part six: Using price efficiency indicators This part provides guidance to local authorities on meeting the requirements of NPS-UDC policy PB7. It explains the price efficiency indicators in the dashboard on the Ministry of Business Innovation and Employment’s website, and outlines how they can be used.
FINAL-NPS-UDC%20evidence%20and%20monitoring%20guide%208%20December%202017.docx