Filling the gaps: creative uses for NZ’s empty retail space

Empty shopfronts don’t just affect landlords, they impact foot traffic, community vibrancy and investor sentiment. While essential retail remains resilient, some centres continue to face stubborn vacancies. But these gaps are no longer being left empty. Across New Zealand, landlords are increasingly exploring creative alternatives to reimagine space and maintain asset relevance.

Retail dynamics have shifted post-COVID, online shopping and cautious tenant expansion mean not every high street or centre is thriving. In Newmarket for example, 24 stores sat empty on Broadway as of early 2025, a visible reminder of rising vacancy and the need for innovative solutions.

1. Pop-up retail

Short-term pop-up stores are doing more than filling space, they’re pulling people in. One example is LUSH Cosmetics, which launched seasonal pop-up stores at Sylvia Park and in central Wellington, using modular retail units to create a fast and flexible presence. These pop-ups created strong visual appeal and aligned with short campaign cycles – perfect for activating empty retail space.

2. Community and health services

More landlords are leasing space to health clinics, physiotherapists, counsellors and even education providers. These services bring consistent foot traffic and add value to neighbouring tenants. Christchurch’s Gap Filler initiative is a standout example of how temporary uses can reinvigorate the streetscape – through everything from container coffee shops to public art.

3. Wellness and lifestyle tenants

Wellness continues to thrive. We’re seeing everything from pilates studios to massage clinics in what used to be fashion retail. These tenants often operate outside peak retail hours, helping extend the daily activity cycle. In Auckland’s Wynyard Quarter for example, Studio Pilates has taken over a former retail suite, offering a premium, light-filled space that caters to nearby residents and office workers alike. These kinds of tenants bring life to centres beyond the traditional 9-5.

4. Education and co-working

Tutoring centres, test prep, and hybrid co-working uses are also growing. In Dunedin, for example, a former shopfront next to the Meridian Mall was transformed into a pop-up study and co-working space called “The Hub”, catering to students, freelancers and visiting professionals. These spaces offer more than desks – they bring community, convenience and purpose to otherwise idle retail floors.

These creative users may not pay flagship rents, but they defend the long-term value of the centre by keeping footfall up and avoiding the perception of lower demand. In many ways, they return the shopping centre to its historical function, as a hub for community activity, not just consumer spending.

Retail isn’t dying – it’s diversifying. From pop-ups and wellness to education and healthcare, filling the gaps creatively is a long-term strategy that can unlock both commercial value and community connection.