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IT’s other growing footprint – office space

IT’s other growing footprint – office space

Tech firms join finance as top sectors by demand for property in Auckland: CBRE

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The information technology sector’s demand for office space in Auckland is booting up, with several notable relocations in the first half of 2013, according to the latest office occupier research by CBRE.

The commercial real estate services and investment firm says IT was in the top five sectors by demand for property in the first half of 2013.

Oracle’s move to Victoria Street and Dimension Data consolidating its previous locations to the Old City Markets in the Viaduct bolstered the sector’s take up of space in Auckland, says CBRE.

CBRE says the IT sector’s take up of more office space is consistent with a Government report from July this year, which noted that the sector is pouring money into both expansion and research and development.

The IT sector took up 7 per cent of office property in Auckland in the first half of the year, with only the traditionally larger occupiers like finance taking up more space in the same period.

Gergely Gaspardy, CBRE

The report stated around half of New Zealand’s ICT companies invested in expansion in 2012, which was almost twice the national average for expansion.

“The IT sector took up 7 per cent of office property in Auckland in the first half of the year, with only the traditionally larger occupiers like finance, manufacturing, business services and information media and telecommunications taking up more space in the same period,” says Gergely Gaspardy, research manager, CBRE Research.

“To see such a level of activity for the IT sector is noteworthy and consistent with the rise in expansion we are seeing. Strong job growth in the sector necessitates larger and different office spaces, and we’ve seen several significant moves within the Auckland market that illustrate that trend.

In overall take up of office space, the financial sector was the most active, as it was in the second half of 2012.

CBRE says this was mainly driven by ASB’s relocating to new headquarters on Jellicoe St, and ANZ occupying the final 12,500 square metres of redeveloped space in the ANZ Centre.

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