There is a sustained flight to quality

• The Auckland CBD vacancy rate decreased by 50 bps to 16.0%, representing 220,109 sqm of vacant space across all grades. The prime and secondary office vacancy rates decreased to 10.8% (-90 bps since Q2 2025) and increased to 22.1% (+30 bps since Q2 2025), respectively.
• Auckland CBD six-month net absorption stood at 13,900 sqm in Q4 2025, higher than the 10-year average of 2,100 sqm. Prime and secondary net absorption stood at +29,500 sqm and -15,600 sqm, respectively.

A major completion occurred in the quarter

• The active supply pipeline for 2025 remains busy, with a major development completed in Q4 2025. This was 30 Daldy Street by Mansons TCLM, with OneNZ as its anchor tenant.
• Longer-term supply includes the Mansons TCLM 35 Graham Street project, a significant new central building proposed for Britomart by Cooper and Company and Precinct Properties’ Pūmanawa Downtown West (Downtown Car Park site).

Quality commands premium rents

• CBD prime average net rents increased marginally this quarter by 0.2% to NZD 615 per sqm p.a. This comprises premium average net rents of NZD 718 per sqm p.a. and A-grade average net rents of NZD 513 per sqm p.a.
• The rental divergence across property grades continues, with the upper end of B-grade fetching rents of approximately NZD 420 per sqm p.a. and the lower end of secondary properties achieving rents of around NZD 190 per sqm p.a.

Outlook: Resurgent confidence continues

• The Auckland CBD office market is navigating a complex period characterised by both cyclical and structural changes. The improving economic backdrop is energising various sectors and prompting investors and tenants to take more proactive steps.
• Looking ahead, businesses will continue to right-size, with the focus remaining on securing the highest quality space in the best locations to attract and retain key staff and clients, thereby reshaping the long-term commercial real estate landscape in Auckland.