Story image

Auckland a hotspot for start-ups as 'tech sector is booming'

27 Sep 2016

New research has highlighted the evolution of Auckland’s innovation spaces and how they’re changing the shape of commercial real estate.

The report titled ‘Sustaining momentum: The role of property in the tech hub puzzle’ from real estate firm JLL takes a look at start-up companies and what they require once they outgrow co-working environments.

It identifies Albany, Takapuna, the CBD fringe, Onehunga, Glen Innes and Manukau as locations that have the right characteristics to appeal to new tech companies.

According to JLL, Auckland’s tech sector is booming with a total of nearly 26% growth in the city. In Wynyard Quarter, the fast rise of the GridAKL innovation precinct has set the benchmark but there are also exciting new spaces emerging at Eden Terrace and Smales Farm. 

Nick Hargreaves, managing director of JLL, says the ongoing redevelopment of GridAKL and Auckland’s dynamic tech sector, along with projects like the City Rail Link, are driving significant demand for commercial real estate here and putting Auckland on the global map.

“The evolution of innovation precincts, tech hubs and clusters is potentially the most significant change to real estate markets post the Global Financial Crisis, and they are likely to drive a significant share of new tenant demand as we head into the next property cycle and beyond,” he says.

For Auckland Mayor Len Brown, the JLL report is a welcome industry update. He says GridAKL is an essential element in Auckland’s drive to become an innovation hub of the Asia-Pacific and move up the global ‘liveable city’ rankings.

“Auckland’s innovation ecosystem has developed rapidly in recent years with GridAKL showcasing the innovation which is part of the region’s DNA, and is essential in enabling us to compete globally for investment and talent,” he says.

ATEED is behind the facilitation for the strategic development of GridAKL on behalf of Auckland Council, and welcomes the emergence of other innovation localities across Auckland.

Brett O’Riley, chief executive at ATEED, says GridAKL is expanding with two Precinct Properties buildings coming online; one new building (12 Madden Street) under construction, and an existing building (Mason Brothers) being refurbished. 

“GridAKL is about creating a community, place and services that businesses can tap into so that they can grow faster, employ more people and further stimulate Auckland’s economic growth,” says O’Riley.

“The globally unique augmented and virtual reality (AR/VR) facility launched in Eden Terrace earlier this month is another example of the growth that we are seeing in technology and innovation in Auckland,” he adds.

“This has been assisted by the international relationships forged during the Tripartite Economic Summit Auckland 2016 and Techweek AKL 2016 which took place in May.”

50 million tonnes of e-waste: IT faces sustainability challenges
“Through This is IT, we want to help people better understand the problem of today’s linear “take, make, dispose” thinking around IT products and its effects like e-waste, pollution and climate change."
Vocus & Vodafone unbundle NZ's fibre network
“Unbundling fibre will provide retail service providers with a flexible future-proofed platform regardless of what tomorrow brings."
IDC: A/NZ second highest APAC IoT spenders per capita
New IDC forecast expects the Internet of Things spending in Asia/Pacific excluding Japan to reach US$381.8 Billion by 2022.
Xero launches new data capture product in NZ
“Data automation is the fastest growing app category on the Xero app marketplace so we know there is a hunger for these types of tools."
Security flaw in Xiaomi electric scooters could have deadly consequences
An attacker could target a rider, and then cause the scooter to suddenly brake or accelerate.
Four ways the technology landscape will change in 2019
Until now, organisations have only spoken about innovative technologies somewhat theoretically. This has left people without a solid understanding of how they will ultimately manifest in our work and personal lives.
IDC: Top 10 trends for NZ’s digital transformation
The CDO title is declining, 40% of us will be working with bots, the Net Promoter Score will be key to success, and more.
Kiwi partner named in HubSpot’s global top five
Hype & Dexter is an Auckland-based agency that specialises in providing organisations with marketing automation solutions.