New Zealand’s two largest cities are experiencing differing fortunes in relation to retail real estate, according to data compiled by Colliers.

In separate reports on Auckland and Wellington, Colliers found recovery is underway in Auckland, while the nation’s capital is struggling.

Some 8.8 per cent of retail properties in Wellington CBD are vacant; the figure in Auckland’s central CBD is 2.9 per cent. Meanwhile, in Wellington’s Lambton Quay, 8.6 per cent of properties are vacant, a figure which is rising.

Vast differences can be seen in what’s to come; Auckland has 27,900sqm of retail space under construction, while Wellington has 4185sqm underway.

Colliers said rising foot traffic and improved confidence in Auckland are driving this growth, adding that reductions in public-sector employment in Wellington are directly affecting foot traffic.

“The current oil price shock and developing situation in the Middle East pose a risk to New Zealand’s household budgets, consumer spending, and ultimately demand for retail spaces,” Colliers said.

“Inflation will be pushed higher, economic growth will be positive but slower, and unemployment is likely to increase in 2026.”

In both cities, Colliers said rental prices and investment activity have remained stable, and future uncertainty is likely to maintain this trend.