Kiwi Tech Boom Changing Face of Commercial Property

27 November 2015

Kiwi Tech Boom Changing Face of Commercial Property

A rapid rise in the number of tech businesses and North American companies opening in New Zealand has increased the demand for serviced office space, with one company at 60% capacity just weeks after listing.

New Zealand sales director of Servcorp Suzanne Scott says the demand for prime managed office space is extremely high as businesses seek to enter new markets like New Zealand with minimal expense, establishment time and risk.

Servcorp [SRV:ASX] is a multinational organisation that provides serviced office space, virtual office products, coworking spaces and IT services.

Scott says it is the high profile North American search engine and social media companies and B2B cloud software providers opening locally which have helped drive her own company’s rapid expansion.

“What was once the domain of SME’s has more recently become the norm for global corporations wanting to enter a market rapidly and efficiently.

“They are familiar with the plug and play set up of managed offices allowing them to enter the New Zealand market quickly,” says Scott.

The need for flexibility, extends to the office lease as well - tech firms know that their head count can change dramatically within a short space of time and need a option with scalable infrastructure to support their growth, she says.

“We are also noticing that the IT and media businesses are becoming leaner in terms of their physical space requirements, with the office becoming a place to congregate and network with peers in sector specific hubs,” she says.

Scott says Kiwi business looking to enter new markets are also embracing this model.

“Increasingly we are also seeing Kiwi companies using serviced offices as a bridge into Asian markets - particularly China where maintaining a high profile office location is fundamental for portraying a successful brand,” says Scott.

Tenants can also book meeting space overseas from New Zealand, the space is always in prime commercial locations and helps create the impression that Kiwi businesses have an existing foothold in that market with prospective customers, she says.

Scott says the company’s latest acquisition on the 26th floor of the PwC building in downtown Auckland has doubled their capacity in the city providing office space for a range of professional services brands.

-ENDS-

© Scoop Media