Wellington Figures Q1 2026

Key Points:

• New Zealand's economic recovery was derailed by the recent US-Israel military action against Iran, which drove oil prices to their highest since early 2022 and  prompted the RBNZ to revise growth forecasts downward and warn that inflation could peak at 4.2% in Q2 2026 - with the central bank signalling readiness to hike the OCR should medium-term inflation expectations become unanchored.
• In Q1, Wellington's CBD office market saw a decline in Prime net effective rents due to increased incentives, while the Secondary CBD office submarket experienced a drop in face rents. In contrast, rental growth was stable in both the industrial and retail markets. 
• 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. Also, 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.