Christchurch Office Market Dynamics Q1 2026

The overall vacancy rate decreased to 10.2% in 2H25, down from 12.2% in 1H25. This includes a CBD vacancy rate of 10.8%, a decrease of 250bps from 1H25, and a suburban rate of 8.8%, down 60bps over the same period.​

Over the next three years, about 38,756sqm of new or refurbished office space is expected to come onto the Christchurch CBD market, adding to approximately 50,000sqm of current vacant space. This level of supply is likely to push vacancy rates higher, especially for secondary office properties.​

Prime CBD average net rents remained stable at NZD 420 per sqm p.a., while secondary CBD average net rents increased by NZD 10 per sqm p.a., rising from NZD 285 to NZD 295 per sqm p.a., reflecting modest rental uplift in secondary locations despite broadly subdued leasing conditions.​

As leasing conditions gradually improve, CBD prime average net rents are expected to lift to NZD 430 per sqm p.a. by 4Q26, representing growth of around 2.4%, with upper‑end rents forecast to reach NZD 460 per sqm p.a. and lower‑end rents rising to NZD 400 per sqm p.a.​

Major investment activity has been subdued, with the most recent significant office sale taking place in July 2025, when 31 Dundas Street in the CBD was sold for NZD 5.86 million. Yields across the Garden City’s office precincts remained unchanged since 4Q24. Prime and secondary CBD average net yields stand at 6.40% and 7.13%, respectively.​

While new supply is expected to put upward pressure on vacancy over the next three years, the recent decrease in the vacancy rate provides a more positive starting point than previously anticipated. Leasing activity is expected to gradually improve, though occupiers are likely to remain selective, with transaction timelines staying elongated amid an uncertain economic backdrop. Prime CBD rents are forecast to see modest growth over the coming 12 to 18 months, with secondary rents also expected to firm slightly as landlords look to recover rising operating costs.