New Zealand office market update 2026

See a below summary of the biggest trends within New Zealand’s office leasing and investment markets for 2026.

 

Leasing market

Uplift in occupier enquiry levels

Leasing conditions are neutral, with enquiry lifting after a subdued period. Confidence is rebuilding, though decision-making remains cautious amid uneven business recovery. Larger organisations are reviewing space needs, shifting towards selective growth and attention turning to generative AI impacts.

Rental conditions diverging by quality

Rental outlook is steady, with firming expected for well-located, high-quality office assets. Demand is strong for modern premises with strong amenities, seismic resilience and sustainability credentials. Older or poorly located buildings face weaker demand, needing higher incentives to maintain face rents.

Flight to quality creates opportunity

Ongoing demand for quality premises presents upside for owners able to upgrade well-located assets. Investment in presentation, amenity and sustainability, alongside flexible pre-fitted suites, is improving leasing outcomes in major cities.

 

Investment market

Investment demand regaining momentum

Investment conditions are improving to neutral, with greater enquiry and competition for well-priced assets. Syndicators and private capital are more active, though purchasers remain selective and office sale volumes remain subdued.

Yields stabilising

Yield conditions are neutral, with stabilisation reported after recent volatility. Limited transaction volumes are restricting sales evidence, making yield movements difficult to define. This continues to widen pricing gaps between buyers and vendors.

Development outlook improving selectively

Development conditions are stabilising as construction costs ease, improving project feasibilities. Leasing pre-commitments remain critical, though well-located projects are securing occupiers. Demand remains shallow, with tenants cautious about significant rental uplifts.