JLL's Auckland retail market dynamics provide property insights into shopping centre vacancy rates, brand expansion, and rental trends across the city.
25 May 2026
Insight
25 May 2026
Auckland Retail Market Dynamics Q1 2026
Categories:
Authors
Chris Dibble
Hina Uqaili
Monish Khan
The CBD vacancy rate increased to 13.1% in 2H25, up from 7.5% in 1H25, driven most notably by the closure of the Smith & Caughey’s department store on Queen Street.
Luxury jewelry retailer Cartier is preparing to launch its inaugural New Zealand flagship in 2Q26, taking over a prominent corner at Queen and Fort Streets. The boutique will occupy the restored Imperial Hotel, a Category 2 heritage site currently being reimagined as a sophisticated two-storey maison
Kiwi Property has entered into a conditional agreement with Costco Wholesale for a 6.4-hectare site in their Drury development, which will become the location for New Zealand’s second Costco.
CBD prime average net rents remain unchanged in 1Q26 at NZD 2,475 per sqm p.a., consistent with the previous quarter. This represents the midpoint between an upper range of NZD 3,775 per sqm p.a. and a lower range of NZD 1,175 per sqm p.a. Rents are not anticipated to increase before 2027 due to persistent supply and demand imbalances. Prime CBD average net yields remained unchanged at 6.88% for the eleventh consecutive quarter. Prime suburban yields firmed this quarter, decreasing by 7bps to 6.81%.
The Woolworths Pukekohe Central portfolio, comprising four properties along Tobin and Seddon Streets with a combined area of 4,941 sqm, sold for NZD 22.05 million this quarter. Also this quarter, five properties on Clarence Street, Victoria Road, and Wynyard Street in Devonport, totalling 2,130sqm, were sold as a portfolio for NZD 10.53 million.
Outlook
A structural flight to quality will continue to drive activity for premium assets, as well capitalised brands take advantage of market softening to secure flagship locations. While the broader market faces headwinds, precincts with superior connectivity and foot traffic are expected to lead the eventual recovery in occupancy levels.
The near-term outlook remains constrained by a reduction in consumer confidence as high living costs continue to dampen discretionary spending. This lack of sentiment is expected to result in a cautious environment for the retail sector throughout 2026.