Auckland Office Market Dynamics Q2 2026

• The Auckland CBD office market is experiencing a clear divergence. While overall vacancy has decreased to 15.8%, premium-grade vacancy fell to an exceptionally low 2.1%, highlighting a strong tenant "flight to quality."
• Reflecting this demand, prime rents are increasing, with premium space now at NZD 725 per sqm p.a. and forecast to continue rising through 2026.
• Investor momentum is building, underscored by the conditional sale of the premium office PwC Tower. This transaction signals renewed confidence in top-tier office assets.

The Auckland CBD office market continues to tell a story of divergence that has sharpened this quarter. The overall CBD office vacancy rate has decreased to 15.8%. Secondary-grade vacancy is now at 21.7%. The prime vacancy rate (Premium and A-grade) edged up by 30bps to 11.1% primarily due to the introduction of new uncommitted supply, but premium-grade vacancy fell by 60bps to just 2.1%.Prime office space, comprising Premium and A-grade buildings, now accounts for approximately 52% of the CBD’s total office stock. This represents a significant rise from roughly one-third of the market a decade ago, highlighting the substantial uplift in the overall quality of the CBD office inventory.

CBD prime average net rents edged up by NZD 5 per sqm p.a. this quarter to reach NZD 620 per sqm p.a. Concurrently, Premium rents increased by NZD 7 per sqm p.a. to NZD 725 per sqm p.a., while A-grade space saw a modest NZD 2 per sqm p.a. increase to NZD 515 per sqm p.a. With growing tenant demand, Premium average rents are forecast to rise by NZD 8 per sqm p.a. in 2026, and A-grade average rents are anticipated to increase by NZD 5 per sqm p.a. over the same timeframe. Investor momentum in the Auckland CBD office market is building, highlighted by the conditional sale of Precinct Properties' PwC Tower to a new JV including investment firm PAG and Precinct Properties. Subject to OIO approval, the deal values the asset at approximately NZD 600 million with an equivalent yield of 5.7%-5.8%, underscoring renewed confidence in premium office assets.

Despite a soft economy, the Auckland CBD office market is showing renewed momentum from strategic investors and occupiers. Demand is driven by a "flight to quality," as tenants prioritise premium, sustainable, and wellness-focused environments that meet modern workplace expectations.