ELECTION 2023
Commercial property insights Q2 2023 JLL explores what is happening across New Zealand’s biggest cities in the office, retail and industrial and logistics markets Office The gulf between prime and secondary office space for lease continues to widen as tenants and employers seek properties that are better equipped to attract and retain the best talent in the market. Furthering this narrative, net prime rents in Auckland’s CBD office market increased by $8 per square metre in Q2 of 2023 – up a total of $18 per square metre through H1. Vacancies slightly increased in the Auckland CBD Core sector despite the desire from occupiers to take up better, more future-fit offices, however net rents are still forecast to climb in the coming years. In fact, over the next five years, prime office rent in Auckland’s CBD are expected to rise by 12.1%, while secondary office rent will only rise by 6.7%. The Archives Building at 2-13 Aitken Street
and the new home of the Ministry of Foreign Affairs at 61 Molesworth Street are among notable developments in Wellington’s office market, both pre-leased and due to be completed in 2026 and 2025 respectively. The MFAT office will add more than 24,000sqm of 6-star Green Star and 5-star NABERS office space to the
market. The already tight office market in the Garden City continued through Q2 of 2023 with a reduction in office vacancy from 3.5% to 2.1%. Over 5,000 square metres of office space was added to Christchurch’s market in the past quarter – a clear indicator of strong performance when combined with the lower
vacancies in the city. Average net rents and yields slightly softened across most markets.
many small-scale retailers have moved away from expanding in physical
spaces to grow their businesses. On the other end of the scale, luxury
retailers are taking up prime sites over 200 square metres, particularly in the
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