The Wellington CBD retail market is seeing several positive signs such as renewed interest from international retailers and low vacancy, according to CBRE.

CBRE’s December 2024 vacancy survey shows only 1.13 per cent of prime retail space in the CBD is vacant, reflecting a strong demand from retailers.

In addition, enquiry levels from national and international retailers is steady, with a number of chains looking to either increase the size of their premises in Wellington or enter the market for the first time, said CBRE retail leasing specialist Zoe Smith.

“These tenants are looking to position themselves for an expected improvement in consumer spending as interest rates reduce and confidence increases,” she explained.

CBRE’s latest surveys of business and consumer sentiment indicate that falling interest rates are setting up the framework for a rebound in economic activity this year.

As at December, Wellington’s overall retail vacancy rate – which includes all retail precincts – was 8.5 per cent, up from 6.9 per cent a year earlier. The overall rate is heavily influenced by the Courtenay precinct. 

“Recent high profile investment and leasing activity in the Courtenay precinct is a positive step forward and it’s exciting to have positive signals of growth and regeneration underway. 

“Eventually this activity can be expected to contribute to greater lease uptake in the future for the precinct,” Smith commented.