Wellington Figures February 2026

Key points:

• The Wellington CBD office vacancy rate decreased to 17.7% in H2 2025, mainly due to a decline in vacant stock in the Secondary CBD office submarket. PSA House (11 Aurora Street) added 3,109 sqm to the CBD office stock during H2.
• The CBD office market saw a decline in effective rents in the last quarter of 2025 due to landlord flexibility in offering incentives in light of lengthening vacancy durations. However, industrial rents remained unchanged, whilst retail rents in Prime CBD locations and Courtenay decreased.
• Industrial vacancy rates in the region rose to 4.1% in December 2025, a 20,000 sqm increase from the previous year, driven by a surge in vacancy in Prime (Grade A) and Grade B assets. 
• The retail market saw a decline in vacant space last year due to a decrease in vacancy in Secondary retail locations. Following a period of trading obstacles that Courtenay faced, vacant retail stock in this precinct decreased in 2025 due to large take-ups of previously vacant locations.
• The economy is forecast to expand in 2026, driven by increased business investment and consumer spending. Inflation is expected to be on target by year-end. Analysts believe that the RBNZ will hold the OCR at 2.25% at least for the first half of 2026, but potentially until Q2 2027.