New Zealand office market dynamics Q1 2024

JLL’s New Zealand Office Market Dynamics provide property insights into how the office market is faring across Auckland, Wellington, and Christchurch.

Our real estate market research is based on data from several reputable sources including on-the-ground insights from our own departments.

As has been the trend for the past few years, occupiers continue to seek the best-equipped properties to attract and retain the best talent in a competitive employment market. This translates into premium and A-Grade office properties being the most desirable. Prime rents across the country have been steadily increasing each quarter, widening the divergence to secondary, most notably in Auckland where average net prime rents for the CBD office market increased by $5 per square metre, following the 7.5% increase through 2023. While vacancies increased across many grades, premium office vacancy decreased to 1.6% (from 2.8%) due to occupier demand for space at the higher end of the scale.

Wellington’s average gross prime and secondary rents remained unchanged in Q4 of 2023, there were significant increases of $45 per square metre for prime (up to $700 per square metre) and $22 per square metre for secondary (up to $420 per square metre). One of the most significant drivers of this increase is building owners attempting to offset market-wide OPEX increases, largely due to rising insurance premiums.

Similarly in the Garden City, the tight office market continued its 2023 narrative with an increase in average net prime rents by 4.5% (+$10 per square metre) in Q1 2024 due to inflationary pressures and a lack of available space. Net prime CBD rents are expected to increase 6.4% for 2024.

• How great will the divergence between prime and secondary office space become in 2024?
• Where are vacancy rates lowest across the country?
• How much office space is in Wellington’s development and refurbishment pipeline?

Find out more below.