JLL's Wellington retail market dynamics provide property insights into CBD shopping vacancy rates, leasing activity, and rental performance in the capital.
Insight
12 February 2026
Wellington Retail Market Dynamics Q4 2025
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The overall vacancy rate increased marginally, to 9.6% in 4Q25 from 9.5% in 2Q25. This constitutes a CBD vacancy rate at 9.8% (+10bps as compared with 2Q25), and a Suburban vacancy rate at 9.2% (+50bps as compared with 2Q25).
There is a divergence in leasing activity across different streets in the CBD. Increased pedestrian activity and growing retailer interest in Lambton Quay have improved leasing momentum, though rents are currently holding steady as a result of overall market conditions. Manners and Cuba Streets show positive momentum.
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.
CBD prime average gross rents have remained unchanged over the last six 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 have deemed to have held steady, though a compression of roughly 15bps is anticipated by 4Q26 following the effects of recent interest 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 limited demand for lower-grade properties.
Outlook