JLL's Auckland office market dynamics provide property insights into vacancy rates, rental trends, and investment activity in New Zealand's largest city.
Insight
Auckland Office Market Dynamics Q3 2025
The overall Auckland vacancy rate increased to 15.1% in 1H25 from 13.0% in 2H24. CBD vacancy rate increased by 130bps to 16.5%, representing vacant space of 225,070 sqm across all grades. The prime and secondary office vacancy rate increased to 12.7% (+250bps) and 21.7% (+120bps) respectively.
CBD prime average net rents increased marginally this quarter, by 0.2%, to now stand at NZD 614 per sqm p.a. This constitutes premium average net rents at NZD 715 per sqm p.a. and A-grade average net rents at NZD 513 per sqm p.a. The marginal increase came from an increase in the lower end of A-grade rents, which now stands at NZD 395 per sqm p.a. (+NZD 5 per sqm p.a.).
With tenant interest now increasing in the market, A-grade average rents are expected to increase further by NZD 5 per sqm p.a. by 4Q25, with premium rents forecast to remain unchanged for the rest of the year.
The rental divergence across property grades continues, with the upper end of B-grade fetching rents of approximately NZD 420 per sqm p.a., and the lower end of secondary properties experiencing rents of around NZD 190 per sqm p.a.
Investment activity, while still below 2021 peaks, is showing increased momentum, with the Auckland CBD Office market attracting renewed interest. The sale of a large-scale office and retail premises at 22, 24 and 26 Durham Street West and 19 Victoria Street West for $104.6 million in December 2024 highlights underlying demand for well-positioned assets.