Green building investment
pays off for Smales Farm

31 January 2011. Smales Farm is maintaining full occupancy despite vacancy rates of 12.4% for prime office space on the North Shore, and 12% in the Auckland central business district.

The vacancy figures, sourced from an annual 2010 report published by Bayleys Property Research, show high rates of vacancy across all grades of offices. The report’s analysis states that the 2007 recession resulted in downsizing of many organisations, further adding to vacancies across all grades of office space.

Smales Farm General Manager Daniel Henderson says demand for premium office space has been unaffected by the recession – in particular buildings which incorporate green technologies to deliver a much more satisfying work environment, as well as operating cost savings.

“Smales Farm has been ahead of the wave when it comes to using green technology in its buildings, but the true value of ‘green’ buildings is proving to extend far beyond substantial savings on power and water costs,” he says.

“Property managers are now looking to weigh other success indicators such as staff retention and even company performance. The need to attract and retain skilled employees, coupled with the economic efficiencies of a modern green building,  have helped Smales Farm close the year with a zero vacancy rate.”

The Bayleys Property Research report does contain some good news, pointing to the recovery that is underway in the office sector. New Zealand’s service industry is now the dominant sector in the economy, increasing its share of GDP to 71% and expanding at a more rapid rate than any other area of the economy. This will decrease office vacancy rates over time.