New retail brands and stadium opening boost CBD demand

The arrival of homegrown beauty brand Hikoco’s South Island flagship store at The Crossing in July this year shows that shoppers are still turning out in force for bricks and mortar retail.

The New Zealand-owned retailer of Korean skincare has grown from a solely online business to operating multiple stores across the country. Its Christchurch opening, which drew large crowds, is the latest sign of momentum in a CBD retail precinct where demand for prime space continues to exceed supply.

CBRE has also just concluded a new lease to a UK brand in The Crossing, which will be announced soon.

Bridget Buchan, Leasing Broker at CBRE, said the ongoing retail leasing momentum is a positive indicator of Christchurch’s thriving CBD, with Hikoco’s opening paving the way for additional upcoming new entrants.

“When a retailer like Hikoco, which has a large social media following, opens in a new location they bring in a lot of additional foot traffic, which is great for the whole CBD retail precinct,” she said.

“We saw this with Mecca and LSKD, which both opened to plenty of excitement in recent years and we're seeing it again now. For brands with a strong online presence, a new store opening always creates a real buzz which also benefits surrounding retailers.”

The opening of One NZ Stadium is also encouraging additional leasing enquiries, with CBRE's retail team reporting a large increase in prospective tenant enquiry immediately after the stadium opened in April.

Zoe Smith, Associate Director of Retail Leasing at CBRE, said retailer interest was well above normal levels.

“In the few days directly following the stadium’s opening weekend, seven new retailers contacted us looking for premises in the CBD. This was a notable upturn, and it was just the start of what is looking like an ongoing trend,” Smith said.

The upcoming spring and summer events schedule for the new stadium is expected to filter through into healthier retail sales in Christchurch’s central city. The precinct recorded a 1.1% decline in retail sales in the 12 months to May 2026, compared with the previous year.

Despite subdued CBD retail sales, competition for the best-located prime retail space remains intense, said Buchan.

“We have several prospective tenants wanting street-front retail space on Cashel Street and this type of space is constantly oversubscribed.”

The demand for prime retail space has been continuing for several years in the Christchurch CBD, with any prime space that becomes available being quickly backfilled.

CBRE research manager Jorge Chang Urrea said CBRE Research’s latest Christchurch Figures report shows prime CBD rents holding steady after a period of significant growth.
“Average prime CBD rents sit at over $1,000 per square metre a year, having been through a significant uplift over the past five years including a period of sharp growth in 2024, when rents increased by 28% over the year.”

Rents for prime CBD retail space are likely to remain stable, driven by strong demand and extremely low vacancy along the prime Cashel Mall and High Street retail strips.