FIGURES|CHRISTCHURCH|Q42025

ChristchurchProperty

MarketOverview

KEYMARKETCHANGES

-InQ3,positivesupplydemanddynamicsinspecificpocketsintheCoreandWestEndprecinctsdroveuprentsinChristchurch’sPrimeandSecondaryCBDofficesubmarkets.

-Followingseveralquartersofsteadyrentalgrowth,theSuburbanofficemarketinQ32025experiencednochangeinmarketrents.

-Christchurch'sretailmarketwasalsostableinQ3,withnosignificantdealssignallingachangeinmarketmetrics.

-Christchurch'sindustrialmarketremainedsubduedinQ3,withlowleasingactivity,andsomeoccupancyconsolidation.

-TheinvestmentmarketisgainingmomentumduetotheRBNZ'sloosemonetarypolicy,drivinguptransactionalactivityandexpectedtoleadtoclearerpricingvisibilityinthefinalquarteroftheyear.Meanwhile,Q3showedstablecommercialpropertyyieldsacrossallsectors.

-EventhoughNewZealand’saggregatedemandhasbeencontracting,theeconomyisexpectedtoreboundin2026drivenbyexportgrowth,businessinvestment,andfurtherinterestratecuts.Christchurch'seconomycontinuestooutperform.

CBRE

AverageOffice,Retail,IndustrialCapitalValues–q-o-q%change

QuartelyAveragechange(%)

14

12

10

8

6

4

2

0

-2

-4

-6

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Jun-24

Sep-24

Dec-24

Mar-25

Jun-25

Sep-25

Marketindicators

PrimeCBDOffice

SecondaryCBDOffice

PrimeSuburbanOffice

SecondarySuburbanOffice

PrimeIndustrial

SecondaryIndustrial

CBDRetail

SuburbanStripRetail

245,498

70,381

67,886

337,844

1,712,873

2,866,306

-

-

9.7

5.8

7.4

9.9

2.5

2.0

-

-

360–460

315–400

260–365

165–345

111–168

72–140

270-1,700

220–700

4–8

8–10

8–10

8–14

1–2

1–2

4–8

4–8

5.95–7.40

7.15-8.00

7.00-8.90

8.30-10.30

5.50-6.75

6.05-9.10

-

5.65–7.75

Incentive(%)

Stock(sqm)

YieldRange

(%)

Vacancy(%)

NetFaceRent($/sqm/yr)

MarketSector

1CBRERESEARCH?2025CBRE,INC.

FIGURES|CHRISTCHURCH|Q42025

2CBRERESEARCH?2025CBRE,INC.

Economy

AnnualInflation(%)%

NewZealand'seconomycontinuestobeimpactedbysluggishlevelsofaggregatedemand.GDPdecreasedby0.9%inQ22025comparedtothepreviousquarter,registeringagreaterdeclinethanwhattheeconomicconsensusandRBNZpredicted(-0.3%).DuringQ2,goods-producingindustries,whichaccountforapproximately21%ofthetotaleconomy,contractedby2.3%,followedbyprimaryindustries(downby-0.7%).Meanwhile,serviceindustries,whichmakeupcloseto74%oftheeconomy,remainedstable.Atamoregranularlevel,manufacturingandconstruction,thesecondandfourthlargestindustriesinthecountry,sawthegreatestdeclinesintheJune2025quarter,withactivitydecreasingby3.5%and1.8%,respectively.Whenanalysedbyexpenditure,inQ2privateconsumptionincreasedbyonly0.4%comparedtoQ1,whilstexportswentdownby1.2%,investmentdecreasedby1.1%,andcentralgovernmentspendingreducedby0.1%.

GDPgrowthisforecasttoimprovefromQ42025onwardsthrough2026.Easingmonetarypolicyischaracterisedbyalaggedeffectonaggregatedemand,whichwillhelpupliftGDPsupportedbyfavourabletermsoftrade,reboundingconsumptionandbusinessinvestment.InitslatestMonetaryPolicyReviewinearlyOctober,theRBNZ’sMonetaryPolicyCommittee(MPC)reducedtheOCRby50bpsto2.50%.Overthepast15months,theOCRhasbeenreducedby300basispoints.Eventhoughannualinflationreachedthetopendofits1%to3%targetbandinQ3,itisforecasttodeclinegraduallyinforthcomingquarterspavingthewayforatleastonemoreratecut.

6.0

5.0

4.0

3.0

2.0

1.0

0.0

OfficialCashRate(OCR)

Oct-20

Jan-21

Apr-21

Jul-21

Oct-21

Jan-22

Apr-22

Jul-22

Oct-22

Jan-23

Apr-23

Jul-23

Oct-23

Jan-24

Apr-24

Jul-24

Oct-24

Jan-25

Apr-25

Jul-25

Oct-25

Source::ReserveBankofNewZealand

NewZealandInflation(annual%change)

11.0

9.0

7.0

5.0

3.0

1%-3%inflationtargetband

1.0

-1.0

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Jun-24

Sep-24

Dec-24

Mar-25

Jun-25

-3.0

TotalInflationTradableInflation——Non-tradableInflation

Source:StatisticsNewZealand

FIGURES|CHRISTCHURCH|Q42025

3CBRERESEARCH?2025CBRE,INC.

Investmentmarket

TheChristchurchinvestmentmarketisgainingmomentumduetotheRBNZ’sdecisiontoholdtightonitsloosemonetarypolicy,increasinginvestorappetiteanddrivinguptransactionalactivity.Theshifttoanevenlowerinterestrateenvironmentisexpectedtopushupbuyerandsellerinteractioninthefinalquarterofthisyear.

Eventhoughbuyersareactive,accordingtoCBRE’sevaluation,Q3showedstablecommercialpropertyyieldsacrossallsectorsinChristchurch.However,duringthepastyear,CBRE’sassessmentofmarketyieldsshowedsomefirmingtakingplaceinthePrimeindustrialandSecondarystripretailsubmarkets.TheexpectedreboundintransactionalactivityduringQ4willbringclearerpricingvisibility.

ChristchurchIndicativeYieldsbySector

10

9

8

7

%

6

5

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

Dec-22

Mar-23

Jun-23

Sep-23

Dec-23

Mar-24

Jun-24

Sep-24

Dec-24

Mar-25

Jun-25

Sep-25

4

PrimeCBDOffice

PrimeSuburbanOfficePrimeIndustrial

StripRetail

SecondaryCBDOffice

SecondarySuburbanOfficeSecondaryIndustrial

FIGURES|CHRISTCHURCH|Q42025

4CBRERESEARCH?2025CBRE,INC.

CBDOfficeStock

AnewphaseofsupplyiswellunderwayintheChristchurchCBDofficemarket.Closeto12,500sqmofPrimeofficespacewillentertheCBDofficemarketduring2025,outofwhichcirca7,200sqmwillconsistofnewbuildingsand5,300sqmofrefurbishedspace.ThesebuildingswillbelocatedintheCoreprecinctofChristchurch’sCBD,specificallyonCashelStreet,HighStreetandHerefordStreet.Inaddition,closeto9,700sqmareexpectedtoenterthemarketnextyearduetothecompletionofonenewbuildingon107CambridgeTerraceandonerefurbishedbuildingon116WorcesterStreet.However,mostofthenewPrimeofficespaceisforecasttocometomarketin2027(justover13,000sqm)throughthecompletionofa2,000sqmnewbuildonTuamStreetanda11-storey11,000sqmnewbuildingon56WorcesterStreet,whichrepresentsthebiggestofficebuildingplannedforChristchurchinthelastyears.Constructionforthesetwobuildingsisexpectedtostartsoon,asbuildingconsentsarealreadyinplace.

ChristchurchCBD’sofficestocktotalsapproximately316,000sqm.DuringH12025,therewasanetincreaseofalmost4,000sqm.Threenewbuildingsenteredthemarket,thelargestone237HighStreet,QBStudios’secondstage,providing1,100sqmofnewofficespace.Theothertwowere170and172CashelStreet,bothdevelopedbytheCarterGroup,addingalmost1,350sqmofspace.TheonlyrefurbishedbuildingenteringthemarketinH1was159HerefordStreet,a7-storey3,041sqmbuildingthatunderwentstrengtheningworks.AllthesebuildingsarelocatedinthesoutheasternpartoftheCoreprecinct.However,theincreaseinstockwasoffsetbycloseto950sqmofofficespacebeingconvertedintoretailspaceand600sqmofGradeCspaceintheVictoriaprecinctremovedfromstockduetorefurbishmentworks.Inregardtocomposition,78%oftheCBDofficestockisGradeA,14%isGradeB,andtheremaining8%isGradeC.Thisdistributionhaslargelyremainedstableoverthepastfewyears.

ChristchurchCBDOfficeNetSupplyChanges

Totalstock(sqm)

450,000

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

Dec-09

Jun-10

Dec-10

Jun-11

Dec-11

Jun-12

Dec-12

Jun-13

Dec-13

Jun-14

Dec-14

Jun-15

Dec-15

Jun-16

Dec-16

Jun-17

Dec-17

Jun-18

Dec-18

Jun-19

Dec-19

Jun-20

Dec-20

Jun-21

Dec-21

Jun-22

Dec-22

Jun-23

Dec-23

Jun-24

Dec-24

Jun-25

iod

Per

uake

rthq

Ea

NetStockChange--CBDCBDOfficeStock

ChristchurchCBDOfficeQualitybyComposition(H12025)

24,4808%

45,90114%

GradeA

GradeB

245,49878%

GradeC

AnnualNetstockchange(sqm)

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

-10,000

FIGURES|CHRISTCHURCH|Q42025

5CBRERESEARCH?2025CBRE,INC.

CBDOfficeNetAbsorption

Christchurch’sCBDofficemarketsawahighernetabsorptionduringH12025comparedtothepreviousperiod.Totalnetabsorptionsatat2,181sqm,similartothelevelregisteredduringthefirsthalfoflastyear.ThiswasprimarilydrivenbyapositivenetabsorptionexperiencedinthePrime(GradeA)officesubmarket,whichreached2,468sqm,followedbyamodestnetabsorptionintheGradeCsubmarket(147sqm).ThiswasslightlyoffsetbynegativenetabsorptionintheGradeBsubmarket(-434sqm).AlthoughnetabsorptionwasinpositiveterritoryduringH1,itwasbelowtheaveragebi-annualnetabsorptionlevelregisteredinthelastyears(circa3,400sqm).

DuringH1,Primenetabsorptionwassupportedbytheintroductionoffullyandpartiallyleasednewandrefurbishedbuildings,suchas170CashelStreet,whereCBREleasedthewholeupperfloor(812sqmofofficespace),and159HerefordStreet,where493sqmwereoccupiedbybothContextArchitectureandVXT.Additionally,otherrelevantnewoccupanciesinGradeAbuildingsincludedSpencerBarr(amarketingagency)leasing453sqmat299DurhamStreet,andLumifyWork(atechnologycompany)movinginto137VictoriaStreet.IntermsofGradeCnetabsorption,themostimportantmovesincludedTotalLife(afinancialadvisoryservicescompany),leasing242sqmat307DurhamStreet,andChaseCommercialoccupying209sqmat77HerefordStreet.Overall,grossabsorptionduringthefirsthalfofthisyearreachedalmost7,900sqmacross29newoccupancies,similartoH22024.

Duringthefirsthalfofthisyear,theindustrythatregisteredthehighesttakeupofspaceintheCBDofficemarketwasrental,hiringandrealestateservices,totalling2,121sqm.Itwasfollowedbyprofessional,scientific,andtechnicalservices(1,834sqm)andwholesaletrade(582sqm).

ChristchurchCBDOfficeNetAbsorptionbyGrade

Sqm

2,500

2,000

1,500

1,000

500

0

-500

3,000

-1,000

Dec24Jun25

GradeAGradeBGradeC

NewTakeUpbyIndustryinH12025(sqmoftopfive)

481

558

2,121

582

1,834

Rental,HiringandRealEstateServices

Professional,ScientificandTechnicalServices

WholesaleTrade

Construction

EducationandTraining

FIGURES|CHRISTCHURCH|Q42025

6CBRERESEARCH?2025CBRE,INC.

CBDOfficeVacancy

ChristchurchCBDofficevacancyincreasedduringH12025,shiftingfrom8.4%to8.8%(circa1,750sqmincrease).SimilarlytoH22024,theintroductiontotheCBDofficemarketofnewandrefurbishedun-committed(orpartiallyun-committed)buildingspushedvacancyup.InH22024,vacancyincreasedsubstantiallyduetothereintroductionof224CashelStreet(a14,000sqmun-committedrefurbishedasset),whichalsoremainedvacantinH12025.Ifthislargebuildinghadnotbeenreintroduced,CBDofficevacancywouldhavesatatonly4.1%inthesecondhalfoflastyear.DuringH1,only493sqmwereoccupiedat159HerefordStreet(outof3,041sqm),adding2,548sqmofvacantspacetotheCBDofficemarket.Also,thewholeupperfloorof172CashelStreet,anewsmallbuilding,remainedvacant(535sqm).CBRE’sdefinitionofvacancyencompassesspacethatisbothphysicallyvacantandavailableforlease.

Sqm

PrimeofficevacancyinChristchurch’sCBDincreasedto9.7%from8.7%,thehighestlevelsinceH22020.Apartfromthenewun-committedstock,thePrimeCBDofficesubmarketalsoexperiencedsomerelevantmoves:LaneNeavedownsizeditsofficefootprintby386sqmat141CambridgeTerrace,twotenants(OtagoUniversityandCPALimited)vacated300sqmat82OxfordTerrace,andHaysleftbehind265sqmat131VictoriaStreet.Incontrast,SecondaryofficevacancydecreasedduringH1,movingdownto5.8%from7.1%,triggeredbyIntecEnergySolutionsoccupying448sqmofpreviouslyvacantspaceat31VictoriaStreet(GradeBbuilding),andHaysmovinginto337sqmat104VictoriaStreet(GradeBasset).

CBDOfficeVacancybyGrade

GradeA

GradeB

GradeC

Total

%

8.7%

6.0%

9.0%

8.4%

Vacancy-December2024

sqm

21,009

2,812

2,249

26,070

%

9.7%

5.6%

6.1%

8.8%

Vacancy–June2025

sqm

23,730

2,588

1,494

27,812

CBDOfficeVacancy

50,000

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

EarthquakePeriod

Dec-09

Jun-10

Dec-10

Jun-11

Dec-11

Jun-12

Dec-12

Jun-13

Dec-13

Jun-14

Dec-14

Jun-15

Dec-15

Jun-16

Dec-16

Jun-17

Dec-17

Jun-18

Dec-18

Jun-19

Dec-19

Jun-20

Dec-20

Jun-21

Dec-21

Jun-22

Dec-22

Jun-23

Dec-23

Jun-24

Dec-24

Jun-25

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

CBDVacantAreaVacancyRate

FIGURES|CHRISTCHURCH|Q42025

7CBRERESEARCH?2025CBRE,INC.

CBDOfficeVacancybyPrecinct

DuringH12025,officevacancyincreasedintheCoreandFrameprecincts,reaching17%and5.3%,respectively.Combined,thevacantstockinthesetwoprecinctascendedtocirca23,000sqm(14,000sqmofwhichcorrespondto224CashelStreet).Incontract,theWestEndprecinctcontinuestohavethelowestvacancyrateinChristchurch’sCBD,withvacancygoingdownto2.0%from2.4%duringthefirsthalfofthisyear.Thisremainsasought-afterprecinctforprofessionalservicescompanies.

CorePrecinctVacancybyGrade

GradeA

GradeB

GradeC

Total

%

19.0%

2.3%

6.6%

15.2%

Vacancy-December2024

sqm

14,638

483

209

15,330

%

21.2%

2.4%

0.0%

17.0%

Vacancy–June2025

sqm

17,526

483

0

18,009

WestEndPrecinctVacancybyGrade

GradeA

GradeB

GradeC

Total

%

1.7%

0.0%

22.3%

2.4%

Vacancy-December2024

sqm

1,306

0

671

1,977

%

1.6%

0.0%

14.3%

2.0%

Vacancy–June2025

sqm

1,239

0

429

1,668

VictoriaPrecinctVacancybyGrade

GradeA

GradeB

GradeC

Total

%

5.7%

14.1%

26.7%

11.5%

Vacancy-December2024

sqm

1,094

1,796

1,369

4,259

%

3.7%

12.3%

23.6%

9.2%

Vacancy–June2025

sqm

693

1,572

1,065

3,330

FramePrecinctVacancybyGrade

GradeA

GradeB

GradeC

Total

%

5.8%

7.2%

0.0%

5.0%

Vacancy-December2024

sqm

3,972

533

0

4,505

%

6.2%

7.2%

0.0%

5.3%

Vacancy–June2025

sqm

4,272

533

0

4,805

FIGURES|CHRISTCHURCH|Q42025

8CBRERESEARCH?2025CBRE,INC.

CBDOfficeRents

AftertakingabreatherinQ2,boththePrimeandSecondaryCBDofficesubmarketsregisteredrentalgrowthinQ3.Therewasstrongdemandforwell-situatedbuildings,especiallyonthewesternsideoftheCoreandintheWestEndprecincts.Availabilitycontinuestobelowintheselocations.ThisdroveCBDPrimenetfaceofficerentstomoveto$385persqminQ3,upby0.6%comparedtothepreviousquarter.Meanwhile,CBDSecondarynetfacerentsmovedto$323persqm,0.7%higherthanQ2.Rentalgrowthisexpectedtocontinueinthecomingquarters,drivenbynewstockcomingtothemarket,commandinghigherrents.

Similartothepreviousperiod,incentivesremainedunchangedduringQ32025.BasedonCBRE’sassessment,Primeindicativemarketincentivesremainedunchangedat5.0%offacerents,whilstSecondaryindicativemarketincentivesremainedstableat8.6%offacerents.

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

CBDNetEffectiveOfficeRents–QuarterlyChange

Nochange

Dec-24

Mar-25

Jun-25

Sep-25

PrimeSecondaryCBDNetEffectiveOfficeRents

450

400

$/sqm/annum

350

300

250

200

150

100

50

0

Sep-20

Mar-21

Sep-21

Mar-22

Sep-22

Mar-23

Sep-23

Mar-24

Sep-24

Mar-25

Sep-25

PrimeSecondary

FIGURES|CHRISTCHURCH|Q42025

9CBRERESEARCH?2025CBRE,INC.

Suburbanofficestock(Sqm)

SuburbanOfficeStock

DuringH12025,therewasanetincreaseof924sqmintheChristchurchsuburbanofficestock,totalling407,223sqm.Thisfollowsthemodestnetincreaseinthesecondhalfoflastyear(518sqm).ThemaindriveroftheincreaseduringH1wasthereturnof1,400sqmofGradeCrefurbishedofficespaceat116RiccartonRoad.Thiswaspartiallyoffsetbytheremovalfromstockof476sqmofGradeDspaceat18WinstonAvenueinPapanuiduetorefurbishmentworks.

DuringH12025,48%ofthesuburbanofficestockwasGradeB,whilst30%wasGradeC,17%wasGradeA,andtheremaining5%wasGradeD.Thiscompositionhasshownlittlevariationoverthelastthreeyears.

ChristchurchSuburbanOfficeNetSupplyChanges

450,000

400,000

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

Jun-12

Jan-13

Aug-13

Mar-14

Oct-14

May-15

Dec-15

Jul-16

Feb-17

Sep-17

Apr-18

Nov-18

Jun-19

Jan-20

Aug-20

Mar-21

Oct-21

May-22

Dec-22

Jul-23

Feb-24

Sep-24

Apr-25

NetStockChangeSuburbanofficestock

ChristchurchSuburbanOfficeQualitybyComposition(H12025)

20,3235%

67,88617%

GradeA

GradeB

123,51530%

GradeC

GradeD

195,49948%

60,000

NetStockChange

50,000

40,000

30,000

20,000

10,000

0

-10,000

-20,000

FIGURES|CHRISTCHURCH|Q42025

10CBRERESEARCH?2025CBRE,INC.

SuburbanOfficeNetAbsorption

Sqm

ThesuburbanofficemarketexperiencedrobustleasingactivityintheH12025,withcirca15,250sqmofgrossabsorption,althoughthiswasbelowthelevelregisteredduringtheH2oflastyear(closeto19,400sqm).Nevertheless,totalnetabsorptionwasinnegativeterritoryduringH2(-1,148sqm),duetooccupierlossesintheSecondarysuburbanofficesubmarket.However,comparedtothesecondhalfoflastyear,totalnetabsorptioninH2waslessnegative.EventhoughPrimenetabsorptionshiftedtopositiveterritory(162sqm),Secondarynetabsorptionwasnegativeacrossallsuburbanofficesubmarkets,particularlyinGradeDbuildings(-868sqm).

Inregardstonewtakeup(grossabsorption),themostimportantmoveinthePrimesuburbanofficesubmarketwasdonebyRegus,movinginto640sqmat14HazeldeanRoadinAddington.IntermsofrelevantmovesintheSecondarysubmarket,themostsignificantnewoccupanciesincludedR&BBuild(aconstructioncompany),occupying800sqmofGradeCofficespaceat46BirminghamDriveinMiddleton,andZealConsultants(anITconsultingcompany),movinginto300sqmat13BarryHoganPlaceinAddington,aGradeBbuilding.

TheindustrythatrecordedthehighesttakeupofspaceduringH12025intheSuburbanofficemarketwasrental,hiringandrealestateservices,withatotalof2,369sqm,followedbyprofessional,scientificandtechnicalservices(1,963sqm),andconstruction(1,668sqm).

OfficeNet

ChristchurchSuburban

1,000

0

-1,000

-2,000

-3,000

-4,000

-5,000

-6,000

-7,000

-8,000

AbsorptionbyGrade

Jun25

Dec24

Prime

Secondary

topfive)

NewTakeUpbyIndustryinH12025(sqmof

1,353

2,369

1,380

1,963

1,668

Rental,HiringandRealEstateServices

Professional,ScientificandTechnicalServices

Construction

FinancialandInsuranceServices

AdministrativeandSupportServices

11CBRERESEARCH?2025CBRE,INC.

SuburbanOfficeVacancy

ChristchurchsuburbanofficevacancyincreasedduringH12025,risingfrom9.0%to9.5%(anincreaseof2,072sqm).Totalsuburbanofficevacancyhasbeenrisingsteadilysincethesecondhalfof2023.InH2,totalvacantspaceincreasedby2,072sqmduetooccupierlossesinSecondarybuildings,mostlyinGradeCbuildings,whichregisteredanincreaseof1,420sqm,shiftingvacancyto12.3%from11.3%.Combined,vacantstockinGradeBandDbuildingsincreasedby814sqmduringthisperiod.

Sqm

ThemostrelevantmoveintheSecondarysuburbanofficemarketduringH2includedaconstructionandhomedesigncompanyvacating684sqmofGradeBofficespaceat208BarbadoesStreet.Inaddition,Streamliners(atechnicalwritingcompany)movedoutof551sqmofGradeCspaceat189MontrealStreet,andRunacresInsurancedownsizedtheirfootprintat351LincolnRoad,shiftingfrom1,012sqmto506sqm.

SuburbanOfficeVacancybyGrade

GradeAGradeBGradeCGradeDTotal

%7.7%8.0%11.3%9.1%9.0%

Vacancy-December2024

sqm5,20715,56613,8101,86236,446

%7.4%8.2%12.3%11.1%9.5%

Vacancy–June2025

sqm5,04515,98815,2302,25438,518

SuburbanOfficeVacancy

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Jun19

Dec19

Dec20

Jun21

Dec21

Jun22

Dec22

Jun23

Dec23

Jun24

Dec24

Jun25

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

SuburbanPrimeVacantStockSuburbanSecondaryVacantStockSuburbanVacancyRate

12CBRERESEARCH?2025CBRE,INC.

SuburbanOfficeRents

Followingconsistentrentalgrowthinthelastfourquarters,thePrimeSuburbanofficemarketremainedunchangedinQ32025.InQ3,neteffectiverentsinthePrimeSuburbanofficemarketwere$282persqm.RentsinSecondarySuburbanofficebuildingsalsoremainedunchangedat$206persqm.Overthepastyear,themarketexperiencedrobustdemand,leadingtoincreasedrentsforhigh-qualityofficespaceinbuildingslocatedinHazeldeanBusinessParkandShowPlace,bothwithlowavailability..

Meanwhile,incentivesinbothPrimeandSecondarybuildingsremainedunalteredinQ3.AccordingtoCBRE'sassessment,Primeindicativemarketincentiveswere8.3%offacerents,whileSecondaryindicativemarketincentivesremainedat12.3%offacerents.

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

SuburbanNetEffectiveOfficeRents–QuarterlyChange

Nochange

Dec-24

Mar-25

Jun-25

Sep-25

PrimeSecondary

300

$/sqm/annum

250

200

150

100

50

0

SuburbanNetEffectiveOfficeRents

Sep-20

Mar-21

Sep-21

Mar-22

Sep-22

Mar-23

Sep-23

Mar-24

Sep-24

Mar-25

Sep-25