Christchurch CBD office vacancy falls as prime rents reach new highs

Christchurch CBD office vacancy reduced for the first time in more than two years in the second half of 2025, with prime rents posting their strongest quarterly growth in nearly four years, according to new research from CBRE.

CBRE's Q1 2026 Christchurch Figures report shows overall CBD office vacancy fell to 7.4% in H2 2025, down from 8.9% in the previous period. This was the first decline in CBD office vacancy since H2 2023.

Mitchell Wallace, Director of Office Leasing at CBRE, said the vacancy reduction is a positive indicator of the strength of the CBD office market, reflecting continued demand from occupiers at a time when new supply of office space has been increasing.

“The current development phase which began in 2024 has introduced meaningful volumes of new office space to the CBD. More new space will be added this year as construction and refurbishment projects are completed. However, with the only new building to be opened in the latter half of 2025 already fully occupied by its owner, there was no new space introduced during this time and this has resulted in demand starting to catch up with supply growth.”

Rent growth is also looking healthy, recording an increase in early 2026 following little change in rents through 2025, said Jorge Chang Urrea, Research Manager at CBRE.

“Rents on prime CBD office space rose 2.3% in the first quarter of 2026 to $426 per square metre, while secondary CBD rents increased by 4.7% to $384 per square metre. Both figures represent the highest quarterly rent growth in either submarket since the second quarter of 2022, reflecting the tighter supply conditions in prime stock and robust competition among tenants for space.”

The most significant lease during the second half of last year was Seequent committing to levels six and seven of the former IRD building at 224 Cashel Street, totalling over 4,000sqm, in a deal negotiated by Mitchell Wallace.

The Christchurch-founded technology company will relocate from its current Moorhouse Avenue premises to the refurbished building, opposite the newly-opened One NZ Stadium.

The deal is one of the most significant office leasing transactions in Christchurch in recent years, Wallace said.

“When an occupier of this calibre commits to a multi-floor tenancy in a major building, it creates momentum and impetus giving other tenants the confidence to look closely at the building and location and consider co-locating at the same address. This is just what the eastern CBD needs right now, at a time when the stadium opening is injecting a real buzz into the area.”

Seequent’s commitment provides a high-profile endorsement of the building’s recent refurbishment and a strong platform for leasing momentum through the remainder of the property, said Wallace.

“The landlord has had a clear vision for this asset and has stayed the course to secure this excellent leasing outcome. A NASDAQ-listed tenant at the top of the building helps set the tone for the rest of the tenancy mix, and it will encourage other businesses that want to be in close proximity to a leading occupier.”

Wallace said the transaction capped a leasing process that extended close to a year from beginning the search for suitable space through to signing the final agreement.

“This deal concludes a thorough search and negotiation process. We explored a range of options, but 224 Cashel Street stood out because it provides large, efficient floor plates in an existing building, without the development and delivery risk that can come with new builds.”

Looking ahead, around 10,500sqm of new prime office space is due to enter the Christchurch CBD market in 2026, led by 107 Cambridge Terrace in the West End.

Around 8,000sqm of additional new space is planned for 2027, including the completion of a large-scale refurbishment of the former State Insurance Building at 116 Worcester Street. 

In 2028, Countrywide Group is targeting completion of a high rise development at 56 Worcester Street, a 11,000sqm, 12-storey building which will be the largest office building to be delivered in Christchurch in several years.