Overview
Our Auckland office, established in 2017, supports clients with commercial property needs across both Australia and New Zealand. Auckland, with a population of 1.71 million, contributes 38% of New Zealand's GDP, making it the country's largest economic hub. The city is home to many of New Zealand’s major industries, including finance, technology, and manufacturing, driving strong demand for commercial real estate.
Auckland - Office
In Q4 2024, Auckland's CBD office market saw an increase in vacancy rates, with the overall rate rising to 15.2%. This was primarily due to the completion of new, more efficient buildings. Despite the rise in vacancy, prime net effective rents saw a slight increase, driven by demand for quality spaces and limited new supply.
Looking ahead, the Auckland CBD office market is expected to tighten further into 2025, supported by ongoing demand and a limited development pipeline.
Auckland - Industrial
In Q4 2024, Auckland’s industrial market saw a slight increase in vacancy rates to 2.2%, up from 1.75% a year earlier. Leasing activity remained steady, with average prime-grade warehouse rents rising by approx. 2% year-on-year to NZD $195 per sqm. While rental growth has moderated, new prime-grade warehouse space continues to command higher rents due to elevated development costs.
Looking ahead, the market is expected to tighten further in 2025, driven by ongoing demand and limited new supply.
Auckland - Retail
In late 2024, Auckland's retail sector saw moderate growth, with retail sales increasing by 1.3% compared to the previous quarter. However, year-on-year data showed a 4.5% decline. Vacancy rates in retail centres remained low at abou 2.0%, reflecting steady demand for space, while the CBD's vacancy rates continued to improve, declining to approx. 10%.
Looking ahead, the retail market faces challenges due to economic pressures, but new developments like the IKEA store in Sylvia Park and the Maki Centre in Westgate may provide growth opportunities.
