Wellington Retail Market Dynamics Q1 2026

The overall vacancy rate saw a slight rise to 9.6% in 2H25, up from 9.5% in 1H25. This includes a CBD vacancy rate of 9.8%, an increase of 10bps, and a suburban vacancy rate of 9.2%, up 50bps from 1H25.​

Leasing activity in the CBD varies by location. Higher foot traffic and rising retailer interest have assisted with the leasing enquiry on Lambton Quay, though rents remain steady due to broader market conditions. Manners and Cuba Streets are also experiencing positive trends, while leasing periods on Willis Street, particularly for secondary properties, continue to be prolonged.​

The Exchange, a 10,000sqm building including a 2,000sqm retail component, situated between Blair and Allen Streets near Courtenay Place, has been revitalised by Willis Bond and LT McGuinness and now hosts 20 of Wellington’s foremost creative organisations and hospitality businesses, with several new retail openings.​

CBD prime average gross rents have been flat for seven consecutive quarters, following a 3.6% uplift in 1Q24. The earlier increase was driven by growth at the top end of the market, particularly on Willis Street, where rents rose from NZD 1,350 per sqm p.a. to NZD 1,500 per sqm p.a. at the beginning of the year.p.a. at the start of the year.​

Prime and secondary average net yields have remained at 7.80% and 10.19%, respectively, since 4Q24. Prime suburban average net yields have remained unchanged at 9.56% over the last three quarters. In Upper Hutt, 16-18 Whitemans Road sold for NZD 7.00 million in September 2025. With transaction volumes remaining subdued throughout the region, this 2,660sqm sale remains one of the most recent notable transactions.​

The retail sector in Wellington is beginning to show early signs of recovery, with prime gross rents remaining stable at NZD 1,425 per sqm p.a. Activity across the CBD is mixed; Lambton Quay is experiencing stronger leasing demand thanks to higher pedestrian numbers, especially for retailers in the food, beverage, and services segments. In contrast, leasing takes longer in areas like Willis Street and parts of the Golden Mile, while Cuba Street, with its boutique and unique character, continues to perform differently from other precincts.