Auckland’s southern corridor is fast becoming an in-demand precinct as more employers look to cut commutes for staff and lure them back to the office.

While a flight to quality has dominated Auckland’s office leasing marketing in recent years, centred on new-builds in the CBD, economic challenges are shifting the focus to other commercial precincts as smaller business owners place greater emphasis on getting the right bang for their buck.

Auckland’s southern corridor, stretching from Market Rd, south of Newmarket, through to Papakura, is tipped to be of growing interest to employers wanting accessibility and lower rental costs.

The corridor follows the line of Great South Road, once Auckland’s main arterial route south, as well as the main trunk railway lines, as well as Manukau it takes in Onehunga, Mangere town centre, Auckland International Airport and Airport Oaks to the west, and Pakuranga, Flat Bush, East Tamaki, Ormiston and Highbrook to the east

Bayleys Auckland director office leasing, Chris Wong says the southern corridor’s diversity of zoning, and its mix of commercial and industrial uses within close proximity to residential zones and key transport links, means the precinct is uniquely placed to provide answers to some common office leasing questions now being asked by businesses considering a move.

Wong and Bayleys Auckland director office leasing, Sam Fitzgerald have recently joined the Bayleys Office Leasing team, as specialists in the southern corridor. They expect the precinct to attract increased interest from businesses wanting to reduce leasing costs without large sacrifices in quality, and find property in locations that will encourage staff back to the office after several years of working from home.

“With fiscal policy easing, we’re anticipating a shift in leasing conditions. With the challenging economic times we’ve been through, business owners are more conscious about their capex spend if they’re looking to move,” Fitzgerald says.

“Tenant thinking is shifting more toward value. In this environment our expectation is business owners will be looking for good office space that still has good quality fitouts in place that won’t require them to spend a truckload of money.”

Wong adds that a key advantage of the southern corridor is that it’s more suburban and closer to people’s homes which makes it appealing to both employers and their people. “If people are going to go back into the office after working from home they want to work closer to where they live,” he says.

“Even with good public transport, ultimately Auckland commutes are never going to be highly efficient, just because the city is so spread out. The question then becomes: ‘How do I work in suburbia, or closer to home?’ That is going to play out more and more over the next five years or so.

“Heading into an office along the southern corridor means the commute is likely to be a lot more palatable. The parking options are significantly better and the transport links are excellent, whether you’re on public transport, or in your car,” Fitzgerald says.

Bayleys South Auckland commercial general manager Sunil Bhana says while the corridor has always been a part of Auckland’s commercial leasing landscape, improved amenity throughout the precinct will encourage business owners to take a fresh look at the area.

“Once, moving out of the CBD meant you would lose access to amenities like places to eat, gyms or retail, but that has vastly improved. Now the southern corridor includes places like Sylvia Park, for example, which includes every amenity under the sun,” he says.

“There are genuine office towers at Sylvia Park now with quality that matches what you'd find in the CBD. It's a realistic option now for businesses because they can feel comfortable putting their staff in good quality premises that don't necessarily cost the Earth.”

While more new builds are expected to come online, some of the best opportunities for businesses in the southern corridor may lie in the precinct's existing stock, Fitzgerald adds.

“There is a good selection of A and B-grade buildings to choose from within the southern corridor that are of good quality and in good condition,” he says.

“There is something in the precinct that suits most types of business. If you’re a lawyer, for example, you might want a high-end office space with a good fit-out that will wow your clients. If you’re a small start-up you might only need 100sqm that won’t cost a fortune. The southern corridor can meet both those needs.”