Between December 2024 and June 2025, the overall vacancy rate increased to 9.5% from 5.4% (+400bps). This constitutes a CBD vacancy rate at 9.7% (+390bps as compared with 2H24), and Suburban vacancy rate at 8.7% (+450bps as compared with 2H24).

The Exchange, a 10,000sqm building located between Blair and Allen Streets, off Courtenay Place, has been revived and reimagined by Willis Bond and LT McGuinness. Home to 20 of Wellington’s leading creative organisations and hospitality enterprises, a number of new shops have opened here.

Mitre 10 will be the anchor tenant at Top of Tory (131 Tory Street, Te Aro), marking one of Wellington’s most significant retail leasing deals since David Jones. Joining Mitre 10's 5,000sqm store in this project are Noel Leeming, Warehouse Stationery, Look Sharp, Commonsense, and a Health & Wellness Hub.

CBD prime average gross rents have remained unchanged over the last five consecutive quarters, after a 3.6% increase during 1Q24. This increase was primarily due to a rise in upper-end rents at Willis Street, which increased from NZD 1,350 per sqm p.a. to NZD 1,500 per sqm p.a. at the start of the year.

Due to limited transaction activity, yields held steady, though a compression of roughly 15bps is anticipated by 4Q25 following the effects of recent official cash rate cuts. Prime CBD average net yields are currently at 7.80%. Secondary CBD net yields begin at 11.50% on the lower end, reflecting seismic concerns affecting lower-grade properties in the Te Aro area.