Wellington Figures Q4 2024

Key Points:

• CBD office vacancy increased to 14.3%. The primary factor was the increase in vacant office space in Secondary buildings. While many owners of office buildings are lamenting higher vacancy, the market remains relatively healthy. When looking at Prime grade office space, Wellington has the second-lowest vacancy rate (6.0%) among all major cities in Australasia, behind only Christchurch.
• Demand for high-quality industrial space is robust and higher benchmark rents were set in Q4 due to well-located new buildings entering the market.  Although vacancy increased, most of it was concentrated in low quality stock.
• The retail market saw a rise in vacant space last year due to weaker trading conditions and reduced foot traffic. In the CBD retail market, the vacancy rate climbed to 8.5%, largely driven by a substantial increase in vacant locations in the Courtenay area.
• Easing monetary conditions has refocused buyers to a more transactional mindset although indicative yields remained stable during Q4 across all sectors.