Christchurch Figures Q4 2024

Key Points:

• The Christchurch CBD office market kickstarted a new phase of supply last year. As a result, office vacancy rose from 3.7% to 8.4%.  This was primarily due to the re-entry of a 14,000 sqm building at 224 Cashel Street, which remained vacant. Excluding this, the vacancy rate in the CBD would have increased to just 4.1%.
• While vacancy increased, the leasing market has been active in both the CBD and suburban office markets as occupier seek to optimise premises size, quality, and location.
• Despite increasing from 1.4% to 1.8%, industrial vacancy continues to be historically low. The increase reflects a combination of more moderate demand conditions and the market entry of new built uncommitted industrial buildings.
• CBD Prime retail rents experienced an increase for the fifth consecutive quarter. Net effective office rents also saw an increase in Q4. Despite higher vacancies, rents are supported by ongoing occupier demand for high-quality office space in well-located buildings. Industrial rents remained stable in Q4 following an increase in Q3.
• Easing monetary conditions has refocused buyers to a more transactional mindset although indicative yields remained stable during Q4 across all sectors.