Opinion | Guardians of Value: Why Property and Asset Managers Must Be Regulated

Auckland’s office property market is facing significant challenges. Occupiers demand flexible, well-managed spaces, while landlords are grappling with rising vacancy rates and shrinking margins. Yet, one critical issue remains overlooked: the lack of formal regulation and mandatory qualifications for property and asset management professionals and companies.

Currently, anyone in New Zealand can call themselves a property or asset manager without any required certification or industry oversight. This regulatory gap places both owners and occupiers at risk—especially in the office sector, where managing leases, tenant relationships, asset performance, and building operations requires specialised expertise.

The Stakes Are High in Auckland’s Office Market 

Office buildings today are far more than physical spaces—they are dynamic environments that need strategic management. Property and asset managers play a central role in tenant retention, lease negotiations, maintenance, compliance, and delivering an excellent occupier experience, while also driving long-term asset value.

Without professional standards and accountability, the quality of management varies widely. Poor management can lead to higher vacancies, tenant dissatisfaction, and ultimately, decreased asset value. This is particularly concerning in Auckland, where vacancy rates in secondary and fringe office buildings are notably high.

Vacancy Rates Paint a Clear Picture 

A recent market report reveals Auckland’s overall office vacancy rate has reached approximately 17%, well above historical averages. While prime central business district (CBD) offices remain relatively resilient, secondary locations continue to struggle with prolonged vacancies.

These elevated vacancy rates create pressure on landlords to offer rent incentives and reduce lease terms, squeezing returns and limiting the ability to invest in building upgrades—factors that further depress market confidence.

Occupier Trends Demand More from Property and Asset Managers 

The Bayleys Knight Frank (Y)our Space 2025, Global Occupier Trends Report identifies several key trends shaping the office market: 

• Hybrid work models continue to shift demand toward flexible, collaborative, and wellbeing-focused office environments. 
• Sustainability and environmental, social, and governance (ESG) concerns are influencing occupier choices, favouring energy-efficient, healthy buildings. 
• Lease terms are shortening, increasing the need for property and asset managers to be agile and responsive to occupier needs. 
• The integration of technology and tenant experience platforms is becoming essential to attract and retain tenants.

Meeting these expectations requires managers to go beyond routine tasks and take on a proactive, strategic role aligned with occupier priorities and long-term asset goals. 

The Risks of an Unregulated Market 

Property and asset management encompass complex legal, financial, and operational responsibilities. Mismanagement can result in compliance breaches, missed lease renewals, and poor building maintenance—all of which risk driving tenants away.

Without mandatory qualifications or regulation, the sector remains fragmented and inconsistent. This lack of professionalism undermines trust among owners and occupiers and impedes investment and innovation in the office market.

A Call for Industry Leadership and Regulation 

We have seen how the absence of formal standards hampers the sector’s ability to adapt to market realities. It’s time for the industry, government, and professional bodies to establish clear regulations and mandatory qualifications for property and asset managers and companies.

Such regulation would elevate professionalism and accountability, enabling managers to better engage tenants, execute asset strategies, and ensure compliance.

Building Trust and Elevating the Profession 

Regulating property and asset management will also build greater trust in the industry. Occupiers will feel confident that their managers understand and meet their needs. Owners will have peace of mind knowing their assets are managed by qualified professionals committed to best practices. 

This framework would also enhance the career pathway for managers, encouraging skills development and continuous learning—critical in a fast-evolving market.

The Time to Act is Now 

Auckland’s office market is at a crossroads. To thrive amid economic uncertainty and shifting occupier expectations, we must ensure property and asset management professionals have the skills and accountability the sector demands.  This is an essential step toward securing a vibrant, resilient office market that benefits investors, occupiers, and the wider community.