Christchurch Retail Market Dynamics Q1 2026

The total vacancy rate fell to 6.7% in 2H25, down from 8.1% in 1H25. This includes a CBD vacancy rate of 5.7%, which is a decrease of 10bps compared to the previous period, while the suburban vacancy rate rose by 30bps to 3.3%.​

Although there was an overall increase in some vacancy rates, road frontage shops on Cashel Street in the CBD continued to attract a diverse range of new tenants, including interest from both international and national brands. Notably, ASICS launched its Christchurch flagship store at 88 Cashel Street in the second half of the year.​

Peebles Group is developing Downtown, Christchurch’s first major mixed-use project. The 20-building complex will feature three to five storey structures with hospitality venues, shops, offices, and 87 apartments, including penthouses—built around laneways and green spaces on a 4,800sqm block bordered by Cashel, Manchester, Lichfield Streets, and Huanui Lane. Reviving Bedford Row, the development will link to One NZ Stadium a block away. Construction starts April 2026 and is expected to finish by October 2027.​

After recording consecutive quarterly increases from 2Q23, CBD prime average net rents have remained unchanged at NZD 925 per sqm p.a. this quarter, a level maintained since 3Q24. Rents range from approximately NZD 1,200 per sqm p.a. at the upper end to NZD 650 per sqm p.a. at the lower end. Overall, the CBD retail market has shown a strong recovery since 2022, outperforming other major CBD retail markets nationally, where rents have generally weakened or stabilised.​ CBD prime average net yields remain unchanged at 6.81% this quarter, marking eleven consecutive quarters of stability.​

Demand for prime CBD retail and hospitality space is expected to strengthen, underpinned by growing foot traffic to the central city as the stadium and surrounding precinct become established as a regular events destination. New mixed-use development activity is expected to add to the vibrancy and diversity of the CBD retail offer over the medium term, though the pace of absorption will depend on the broader economic recovery and consumer confidence.