27 Apr 2009

Building vacancy rates expected to double

6:25 am on 27 April 2009

Office building vacancy rates in Auckland and Wellington are expected to double over the next three years, as businesses downsize or close.

Colliers International's latest research report forecasts Auckland office vacancy rates will double to 15% in 2011. Vacancy rates will double to 12% in Wellington over the same time.

The forecasts are based on an expected rise in unemployment.

As new office buildings near completion, Colliers International research director Alan McMahon says landlords are offering rental holidays and being more generous with building fit-outs, to attract and retain tenants.