The overall vacancy rate increased to 13.8% in 1H25 from 8.0% (+580bps) for 2H24. This comprises a prime vacancy rate of 7.2% (+220bps as compared with 2H24), and a secondary vacancy rate of 17.1% (+760bps as compared with 2H24).

The Wellington office market has experienced approximately 16,000sqm of sublease space being introduced during the last year from the public sector, along with circa 13,000sqm from the private sector.

Prime average gross and net rents remained unchanged at NZD 751 per sqm p.a. and NZD 434 per sqm p.a., respectively. Prime average gross rents are expected to increase only marginally by 4Q25, by 0.7%. This is mainly due to a forecast increase in prime OPEX having an impact on gross rents. Prime OPEX is expected to increase to NZD 323 per sqm p.a. from a current figure of NZD 318 per sqm p.a. Prime average net rents are expected to increase marginally during the next few years, with any increases in prime average gross rents coming from increases in OPEX.

Precinct Properties announced in February 2025 that PAG will acquire the remaining 20% minority interest in 40 & 44 Bowen Street in the Wellington CBD for NZD 48.00 million.