Christchurch Retail Market Dynamics Q2 2026

• Christchurch retail vacancy tightened across both CBD and suburban markets, supported by improving occupier demand and leasing activity. Cashel Street continues to perform strongly as a key retail precinct.
• Prime CBD rents remained stable following earlier growth, with Christchurch continuing to outperform other major CBD retail markets nationally. Development activity and recent transactions reflect ongoing market confidence.
• The outlook remains positive, with stronger retail and hospitality demand expected to support gradual rental growth in well-located, high-quality retail space.

The total Christchurch retail vacancy rate declined to 6.1% in 1H26, down from 6.7% in 2H25, signalling a slight tightening in market conditions. CBD vacancy fell to 5.2% (down 50bps), while suburban vacancy also tightened, declining by 130bps to 2.0%. Retail vacancy across the CBD tightened over the quarter, reflecting improving occupier demand and leasing conditions. Cashel Street continued to perform strongly as a prime retail destination, building on leasing momentum established last year when several new tenants, including both local and international brands, committed to frontage space. This included ASICS opening its Christchurch flagship store at 88 Cashel Street during the second half of 2025. A NZD 130 million mixed-use development planned for 192 Cashel Street will deliver approximately 650sqm of boutique retail accommodation across a 4,800sqm site positioned between Cashel, Manchester, and Lichfield Streets. The project is set to comprise 18 individually designed buildings, contributing further retail and hospitality activation to the CBD.

Following a series of consecutive quarterly increases beginning in 2Q23, CBD prime average net rents have held steady at NZD 925 per sqm p.a. this quarter, a rate sustained since 3Q24. Current rents span from about NZD 1,200 per sqm p.a. at the high end to NZD 650 per sqm p.a. at the low end. Overall, the CBD retail sector has experienced a robust recovery since 2022, outperforming major CBD retail markets nationally, where rental rates have mostly either declined or stabilised. Two notable transactions that occurred within the Christchurch retail sector during the quarter include the sale of the popular Dress-Smart Hornby outlet centre, which is home to several well-known international brands such as PUMA, Calvin Klein, and Tommy Hilfiger, with details of the transaction remaining confidential at this stage. In addition, Antonio Hall at 265 Riccarton Road in Riccarton transacted for NZD 20.0 million during the quarter.

Occupier demand for retail and hospitality premises within the CBD remains relatively buoyant and is anticipated to improve progressively. The opening of Te Kaha stadium will provide a consistent hub for major events and entertainment activity that boosts visitations and potential customers in the area. Retail rental levels are forecast to remain relatively steady over the short term, with stronger growth expected to emerge gradually and primarily within high-quality, strategically positioned retail space as market conditions strengthen.