Goodman Property Trust says it has started building a new $21.4 million building in the Central Park Corporate Centre at Auckland's Greenlane - even though no tenants have yet signed leases.
Goodman's general manager Murray Barclay says no tenants have signed leases for the 5340 square metre office yet, but he's hopeful of attracting some during the construction period.
The building is due to be completed in 12 months and Goodman Property Trust hopes to make an announcement about tenants in the next six months.
Mr Barclay says competition is heating up for top grade office space in Auckland and the company o wanted to take advantage of favourable construction costs.
At current market rentals, the development is expected to provide a yield of 9.5 percent once it is fully leased and producing income.