Increased spending by inbound tourists is helping to drive demand for prime retail locations in Auckland’s CBD areas, according to new figures.

JLL NZ’s head of retail leasing and metro sales, Nilesh Patel, said the retail sector is bouncing back as competition for spaces increases.

“The return of tourists, cruise ships, international students and office workers have increased foot traffic through the CBD, while initiatives such as the pedestrianisation of Queen Street have created a more human-centric environment in the city centre that supports retail and hospitality investment.”

Waterfront properties at the lower end of Queen Street have registered the most demand with a number of high-profile tenants securing prime sites since the start of the year.

Likewise, the City Rail Link, which is expected to be operational by the end of 2025, is driving interest in mid-town retail and hospitality opportunities despite ongoing challenges.

“Landlords are already starting to structure short-term leases to take advantage of the CRL when it opens – and astute tenants seeking favourable rates in a high growth area are knocking on the door right now,” said Patel, claiming that retailers now competing to secure prime spaces. 

Heart of the City CEO, Viv Beck, said the city’s centres are increasingly becoming a place to come for recreational experiences.

“Our March quarter results show spending had returned to 82 per cent of 2019, with 27 per cent of this coming from international visitors.

“With the completion of both the City Rail Link and the NZ International Convention Centre in closer sight, ongoing public and private investment signals confidence in the future as the city centre reshapes as a place to connect for business, entertainment, learning and living.”