FIGURESIWELLINGTONIQ42025CBRE

WellingtonProperty

MarketOverview

KEYMARKETCHANGES

-InQ3,WeIIingtonofficerentswereimpactedbyrisingoutgoingsduetohigherrates.AIso,thePremiumandGradeBsubmarketsregisteredhigherincentives.

-InWeIIingtonIsindustriaImarket,Q3sawpositiveoccupierdemand.Primegrossrentsincreasedby0.4%duetohigheroutgoings.MeanwhiIe,SecondaryindustriaIbuiIdingssawrisingfacerentsingood-quaIityassets.

-TheWeIIingtonCBDretaiImarketshowedmixeddemandIeveIsinQ3,withsomesubmarketsexperiencingrobustdemand,suchasthewestsideofLambtonQuayandCubaStreet,whiIeothers,IiketheeastandnorthernsidesofLambtonQuay,sawIowerdemand.GrossrentsremainedstabIeinmostsubmarkets,exceptforCourtenay,whichsawa1.2%decIineduetosoftermarketconditions.

-EventhoughNewZeaIand’saggregatedemandhasbeencontracting,theeconomyisexpectedtoreboundin2026drivenbyexportgrowth,businessinvestment,andfurtherinterestratecuts.

AverageOffice,RetaiI,IndustriaICapitaIVaIues一q-o-q%change

6

QuarterlyChange(%)

4

2

0

-2

-4

-6

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

MarketSector

Stock

Vacancy

GrossFaceRent

Incentives

YieIdRange

(sqm)*

(%)*

($/sqm/yr)

(%)

(%)

PrimeCBDOffice

500,475

6.6

583一1,091

8一14

6.00一8.25

SecondaryCBDOffice

904,451

24.3

220一708

12一14

7.70-11.45

PrimeIndustriaI

499,068

0.4

194一272

1一2

6.00-7.00

SecondaryIndustriaI

1,718,761

4.1

126一191

3一4

6.50-8.50

PrimeCBDRetaiI

22,891

1.1

1,900-2,700

10一11

6.76一7.61

SecondaryCBDRetaiI

165,373

9.2

800一1,700

10一11

7.00一8.35

*CBDofficestockandvacancyfiguresareasofJune2025,whiIeindustriaIandCBDretaiIstockandvacancyfiguresareasofDecember2024.

1CBRERESEARCH?2025CBRE,INC.

FIGURES|WELLINGTON|Q42025

2CBRERESEARCH?2025CBRE,INC.

Economy

AnnualInflation(%)%

NewZealandIseconomycontinuestobeimpactedbysluggishlevelsofaggregatedemand.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)(%pa)

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

NewZealandInflationAnnualgrowth(%)

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|WELLINGTON|Q42025

3CBRERESEARCH?2025CBRE,INC.

Investmentmarket

Subduedeconomicconditions,lowconfidence,andongoinggovernment-backedcost-cuttingmeasurescontinuedtoimpactWellingtonIscommercialrealestatemarketinQ3.DespitetheRBNZIseasingofmonetarypolicy,transactionsvolumesinthecapitalcityareyettoexperienceasignificantuplift.ThiscontrastswiththeriseintransactionalactivityinAucklandandChristchurch,wherecertainsectorsexperiencedyieldfirminginQ3.LimitedtransactionsinQ3influencedCBREIsevaluationforQ3,whichshowedstablecommercialpropertyyieldsacrossallsectorsinWellington.

10

9

8

%

7

6

5

4

WellingtonIndicativeYieldsbySector

-"

Sep-20

Mar-21

Sep-21

Mar-22

Sep-22

Mar-23

Sep-23

Mar-24

Sep-24

Mar-25

Sep-25

PrimeOffice

SecondaryIndustrialCourtenayRetail

SecondaryOfficePrimeRetail

PrimeIndustrialSecondaryRetail

FIGURES|WELLINGTON|Q42025

4CBRERESEARCH?2025CBRE,INC.

CBDOfficeVacancy

Followingthetrendofpreviousperiods,vacancyintheWellingtonCBDofficemarketincreasedduringH12025,movingto18.0%from14.3%.ThiswasmainlydrivenduetoariseinvacantstockintheSecondaryCBDofficesubmarket,particularlyintheGradeBandGradeDsubmarketsintheCoreCBD,andintheGradeCsubmarketinTeAro.Asaresult,Prime(PremiumandGradeA)officevacancywentupfrom6.0%to6.6%,whileSecondary(GradeBtoD)vacancyincreasedfrom18.9%to24.3%.

BackfillvacancyanddownsizingweretheculpritsbehindthesteepriseinSecondaryvacancy.CBRE’sdefinitionofvacancyencompassesspacethatisbothphysicallyvacantandavailableforlease.Aspartofthegovernment’sinitiativetoconsolidatetheirspaceacrossWellingtonCBD,duringH1severalCrownentitiesmovedto1BowenStreet(nowknownasTeIho),aGradeAbuildingthathadbeenfullyleasedbyMBIElastyear.Thistriggeredasignificantamountofbackfillvacancyacrossmanybuildings,suchasTePuniKōkiriandTeMāngaiPāholeavingbehindtheirGradeBofficefootprintat143LambtonQuay(4,976sqmand622sqm,respectively),theMinistryofPacificPeoplesvacating811sqmat44TheTerraceand483sqmofGradeCspaceat200-204LambtonQuay,theMinistryforWomenleavingbehind518sqmat22TheTerrace,amongothers.AllthesenewtenantsatTeIhodownsizedconsiderabletheirofficefootprintinthecity.AnotherexampleofdownsizingincludedtheMinistryofSocialDevelopment,vacatingalmost5,200sqmat87-89TheTerrace,aGradeBbuildingintheCoreCBD,whilemaintainingcloseto29,000sqmofofficefootprintacrossthreebuildingsinCoreCBDandTeAro.Meanwhile,theGradeBofficespace(8,378sqm)at96-102TheTerracethatBNZvacatedtomovetoOneWhitmorebecameavailableforlease.

Duringthefirsthalfofthisyear,thetotalofficestockinWellington'sCBDincreasedto1,404,926sqm,anincreaseof2,816sqmcomparedtothesecondhalfof2024.ThisincreaseoccurredonlyintheSecondaryCBDofficesubmarket.Thisincreasewasdrivenbythere-introductionof2,126sqmofGradeCofficespaceinFeatherstonTower,locatedintheCoreCBDarea,afteritunderwentstrengtheningworks,aswellastheconversionof690sqmofretailspacetoofficespaceat100TaranakiStreet,aGradeDbuildinginTeAro.

CBDOfficeVacancyChangebyGrade

PREMIUMGRADEAGRADEBGRADECGRADEDTOTAL

Vacancy–June2025

Vacancy-December2024

%6.2%6.7%22.8%22.4%31.5%18.0%

sqm5,91427,250100,22064,65255,325253,360

%3.7%6.6%15.7%18.5%27.7%14.3%

sqm3,57826,60069,35952,99348,417200,946

WellingtonCBDOfficeVacancy

25%

20%

15%

10%

5%

0%

Jun-20

Dec-20

Jun-21

Dec-21

Jun-22

Dec-22

Jun-23

Dec-23

Jun-24

Dec-24

Jun-25

PrimeSecondary

FIGURES|WELLINGTON|Q42025

5CBRERESEARCH?2025CBRE,INC.

CBDOfficeRents

DuringQ3,rentswereinfluencedbyariseinoutgoings,largelyduetotheintroductionofnewratesinJuly.Thisyear,therateincreasewasmoremodestcomparedtolastyear,withthereductionininsurancepremiumshelpingtooffsettherise.Ourrentalassessmentsandbuildingbasketsaimtorepresentthemixofnetandgrossleasesacrossvariousmarketsectors,impactingrentlevels.Forinstance,thePrimeofficesubmarkethasgraduallyshiftedtonetleases,whereasSecondary(especiallyCandDgrade)officebuildingsstillpredominantlyusegrossleases.Thisdifferencemeansthatnetleasesseehighergrossrentswithincreasingoutgoings,whilstgrossleasesmaintainthesamegrossrent,butnetrentsdecreaseasoutgoingsaresubtractedfromgrossrents.

InQ3,grosseffectiverentsintheWellingtonofficemarketwerenotonlyimpactedbyhigheroutgoings,butalsobyhigherincentivesinthePremiumandGradeBsubmarkets.TheGradeCsubmarkethadalreadyhighincentiveslevels,whereasGradeAofficebuildingsexperiencedariseinincentivesinpreviousperiods.AccordingtoCBRE’sassessment,PrimeofficebuildingsexperiencedrentgrowthinbothPremiumandGradeAsubmarkets,withgrosseffectiverentsgoingupby1.3%and2.6%respectively,duetorisingoutgoings.InPremiumbuildings,theriseingrossfacerentsduetohigherOPEXwasnotoutweighedbyhigherincentives.TheSecondaryofficesubmarket,ischaracterisedbyalargeproportionofbuildingsongrossleases,hencehigheroutgoingsgenerallydonottranslatetohighergrossrents.HigherOpexstillhadapositiveimpactonGradeBgrosseffectiverentswhichwentupby1.5%duetotheeffectofhigheroutgoingsonapproximatelyhalfofthebuildings,whichrunonnetleases.Theincreaseinincentivesdidnotoffsettheriseingrossfacerents.

BasedonCBRE’sassessment,theQ3indicativemarketincentivesareat6.8%ofthefacerentsinthePrimeofficesubmarket,arisefrom6.3%.IntheSecondaryofficesubmarket,theyareat12.3%,anincreasefrom11.6%.

OfficeGross

3%

2%

1%

0%

-1%

-2%

-3%

EffectiveRents-QuarterlyChange

Dec-24

Mar-25

Jun-25

Sep-25

PrimeGrossEffective%Change

SecondaryGrossEffective%Change

PrimeGrossFace%Change

SecondaryGrossFace%Change

OfficeGross

EffectiveRents

$/sqm/annum

800

700

600

500

400

300

200

100

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|WELLINGTON|Q42025

6CBRERESEARCH?2025CBRE,INC.

CBDOfficeMarketOutlook

CBDOfficeActualandForecastVacancy

Lastyear,theWellingtonCBDofficemarketrecordedthehighestnegativenetabsorptiononrecord,ataround-43,000sqm.Themainreasonsforthesignificantabsorptionlossesweremultifaceted:occupiersreducingtheirspaceduetoeconomicchallenges,lossesinthepublicsector,andthecurrentgovernmentIsausteritymeasures.Netabsorptionwillremaininnegativeterritoryin2025,althoughnotatthehighnegativelevelsof2024.

Onenewbuildingandthreerefurbishedonesareexpectedtobeaddedtostockin2025,addingalmost31,000sqmofspacetotheWellingtonofficemarket.TheonewiththehighestNLAis61MolesworthStreet,locatedinThorndon’sparliamentaryprecinct,anew19,215sqmGradeAbuildingdevelopedbyPrecinctProperties.Additionally,weexpectthestartofanewconversionphaseintheWellingtonofficemarketthisyear,primarilyforSecondarybuildings.Whileconditionshavenotsupportednewapartmentdevelopmentinthelastthreeyears,weexpectsomenascentconversionactivitytobeginthisyearandincreaseinthenexttwoyears.Overall,the2025-2029periodaveragenetsupplywillbeslightlyover16,000sqm.

Vacantspaceisexpectedtoincreasein2025,primarilyduetoariseinunoccupiedspaceinSecondarybuildings,drivenbybackfillvacancyinSecondaryassetsduetorelocationstohigh-qualitybuildings.Additionally,thereturnofrefurbishedofficespacethathasnotyetbeenpre-committed,aswellasalackofemploymentgrowth,arecontributingfactors.Thecombinationofthedemandandsupplycyclessuggestsvacancypeakingin2027(19.0%)andgraduallydecreasingduring2028-2029.However,CBRE’sresearchshowsthemarketisactuallyrelativelyhealthycomparedwithAucklandandAustraliancities.WhenlookingatPrimegradeofficespaceonly,Wellingtonhasoneofthelowestvacancyrateamongallmajorcitiesinbothcountries.

CBREForecasts

PrimeVacancyRateSecondaryVacancyRate

CBDOfficeActualandForecastAnnualGrossEffectiveRentalChange

CBREForecasts

30%

25%

20%

15%

10%

5%

0%

12%

10%

8%

6%

4%

2%

0%

-2%

-4%

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

Prime

Secondary

FIGURES|WELLINGTON|Q42025

7CBRERESEARCH?2025CBRE,INC.

RetailVacancy

TheoverallvacancyrateintheWellingtonCBDretailmarketincreasedinDecember2024comparedtoDecember2023,risingfrom6.9%to8.5%.Thisuptickrepresentsanadditional4,000sqmofvacantretailspace.AsignificantfactorinthisincreasewasthenoticeableriseinCourtenay,whichjumpedfrom7.5%to12.1%,equatingtoaround3,000sqmofretailspacebecomingvacantduringthistime.ThiswasfollowedbyanincreaseofvacancyinWillisStreet,risingto8.4%from6.4%.

TheindustrythatsawthelargestdecreaseinoccupancybetweenDecember2023andDecember2024wastheonecategorisedas‘other’,reducingbyalmost16,000sqm.Thisindustryincludesspecialisedfoodretailing,travelagencyservices,clubs,alliedhealthservices,amongothers.Thiswasfollowedby‘cafes,restaurantsandtakeawaysfoodservices’,‘electricalandelectronicgoodsretailing’,and‘hardware,buildingandgardensuppliesretailing’.

WellingtonRetailVacancybyPrecinct-Q42024

sqm

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

ThorndonLambtonPrimeWillisCubaCourtenay

VacantStock(LHS)VacancyRate(RHS)

16%

14%

12%

10%

8%

6%

4%

2%

0%

WellingtonRetailOccupancybyIndustry

Cafes,RestaurantsandTakeawayFoodServicesClothing,FootwearandPersonalAccessoriesRetailing

Other

SupermarketandGroceryStoresPubs,TavernsandBars

Furniture,HousewareandTextileGoodsRecreationalGoodsRetailing

PersonalCareServices

PharmaceuticalandOtherStore-BasedRetailing

Hardware,BuildingandGardenSuppliesRetailingElectricalandElectronicGoodsRetailingSportandRecreationActivities

DepartmentStoresBanking

MotorVehicleRetailing

020,00040,00060,00080,000

Dec-23Dec-24Sqm

FIGURES|WELLINGTON|Q42025

8CBRERESEARCH?2025CBRE,INC.

RetailRents

$/sqm/annumQuarterlychange

InQ3,theWellingtonCBDretailmarketshowedmixeddemandlevelsacrossdifferentsubmarkets.SomepocketsinthePrimeandSecondaryCBDretailsubmarketscontinuedtobenefitfromdemand,suchasthewestsideofLambtonQuay,thePrimeretailareainthecity,andCubaStreet,bothwithgoodlevelsoffoottrafficandlowvacancy.Also,therehasbeensomenascentinterestinpartsofFeatherstonStreetduetomorecompetitiverentsandhigheravailability.Incontrast,demandwaslowerduringQ3forretaillocationsontheeastandnorthernsidesofLambtonQuay.Despitethis,grossrentsremainedstableinthesesubmarketsinQ3.Meanwhile,Courtenaysawa1.2%declineingrossrents,duetosoftertradingconditionsandrisingvacancy.

BasedonCBRE’sassessment,incentivesremainedunchangedinQ3,at11.1%offacerentsforPrimeandSecondaryCBDretaillocations,and12.5%forCourtenaysites.IncentivesforPrimeandSecondaryCBDretaillocationshavebeenconsistentsincelate2023,whilstincentivesforCourtenaylocationshaveremainedconstantsincemid-2024.

RetailGrossEffectiveRents-QuarterlyChange

0.0%

-0.2%

-0.4%

-0.6%

-0.8%

-1.0%

-1.2%

-1.4%

-1.6%

-1.8%

-2.0%

Dec-24

Mar-25

Jun-25

Sep-25

Nochange

wPrimeCBDSecondaryCBDWCourtenay

RetailGrossEffectiveRents

3,000

2,500

2,000

1,500

1,000

500

0

Sep-20

Mar-21

Sep-21

Mar-22

Sep-22

Mar-23

Sep-23

Mar-24

Sep-24

Mar-25

Sep-25

PrimeCBDSecondaryCBDCourtenay

FIGURES|WELLINGTON|Q42025

9CBRERESEARCH?2025CBRE,INC.

IndustrialVacancy

IndustrialvacancyincreasedduringthetwelvemonthstoDecember2024,risingfrom2.5%to3.2%.Totalvacantspacewentupbyaround17,000sqmduringthisperiod,markingthehighestannualincreaseinunoccupiedspaceinthelastdecade.Onaverage,industrialvacantspacehaddecreasedbycirca9,500sqmperannumsince2014,whichisquitedissimilartothelatestfigure.Thisincreasewasmainlydrivenbyariseinvacancyinlow-qualityindustrialassets:9,872sqminGradeC/Dbuildingsand5,344sqminGradeBassets.Incontrasttothelackofvacantspaceinhigh-qualityindustrialbuildingsoverthelastthreeyears,GradeAvacancyalsoincreasedduring2024(by1,930sqm),solelyduetoaretailer(TheBodyShop)vacatingawarehouseinKaiwharawharaaftergoingintoliquidation.

Intermsofnewindustrialstock,around8,400sqmenteredthemarketduring2024.ThelargestnewfacilitywasashowroominNgauranga(3,550sqm),followedbya2,182sqmwarehouseonPeterkinStreetinTaitāanda1,720sqmprimeowner-occupiedwarehouseinPorirua.However,theconsiderablenumberofdemolishedbuildingsin2024offsettheamountofnewstock.Lastyear,closeto14,000sqmofsecondaryindustrialstockwerewithdrawnfromthemarketduetothedemolitionof11buildingsonMarsdenStreetandPharazynStreet(inMelling)aspartoftheongoingRiverlinkproject,whichincludesfloodprotectionmeasuresonthebanksoftheHuttRiver.Additionally,theremovalofindustrialstockonTirangiRoad(inRongotai)continuedduring2024,withover3,300sqmofGradeDindustrialstockdemolished.

Seaviewregisteredthelargestincreaseinvacantspacein2024(by12,405sqm),mainlyduetoseveraltenantsvacatinglargeassetsonGracefieldRoadandPortRoad.ThiswasfollowedbyPorirua(increasingby2,300sqm),duetoatowingcompanyleavingbehindaGradeDbuildinginPorirua,andbyTaitā(growingbyover2,000sqm),duetoavacantnewbuildingenteringthemarket.

WellingtonIndustrialVacancyChangebyGrade

%

GRADEA

0.4%

GRADEB

4.4%

GRADEC/D

3.9%

TOTAL

3.2%

Vacancy-December2024

sqm

1,930

25,542

44,226

71,698

Vacancy-December2023

%

0.0%

3.5%

3.0%

2.5%

sqm

0

20,198

34,354

54,552

WellingtonIndustrialVacancy

10%

9%

8%

7%

6%

5%

4%

3%

2%

1%

0%

Dec-19

Dec-20

Dec-21

Dec-22

Dec-23

Dec-24

GradeAGradeBGradeC/D

FIGURES|WELLINGTON|Q42025

10CBRERESEARCH?2025CBRE,INC.

IndustrialGrossEffectiveRents-QuarterlyChange

IndustrialRents

Quarterlychange

InQ3,demandforwell-located,high-qualityassetswasrobustinWellington’sindustrialmarket,particularlyinPoriruaandUpperHutt,whereimprovedconnectivityandbetterassetqualitydroveoccupierinterest.GrossrentsinthePrimeindustrialsubmarketincreasedby0.4%,exposingnon-marketgrowthdrivensolelybyhigheroutgoings.However,Secondaryindustrialbuildings,mostlyongrossleases,sawgrosseffectiverentsincreasedby1.5%,mainlyduetoariseinfacerentsinassetsinthehigh-endspectrumofthissubmarket,whichbenefitfromlowavailability.

AccordingtoCBRE,indicativemarketincentivesremainedsteadyinQ32025.Primeincentivesarecurrently1.9%offacerents,whileSecondaryincentivesare4.2%.

1.8%

1.6%

1.4%

1.2%

1.0%

0.8%

0.6%

0.4%

0.2%

0.0%

Dec-24

Mar-25

Jun-25

Sep-25

Nochange

PrimeSecondary

IndustrialGrossEffectiveRents250

200

$/sqm/annum

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

11CBRERESEARCH?2025CBRE,INC.

IndustrialMarketOutlook

Thedevelopmentpipelineisfallingfromover25,000sqmperannumduringmuchofthepast6yearsto16,000sqmthisyear.Theactivedevelopmentpipelinein2026andbeyondcomprisesasmallhandfulofprojectsandnewsupplywillbewellbelow10,000sqminthenextcoupleofyears.Bidfood’srecentlycompleted6,000sqmGrenadaNorthpremisesisthelargestnewwarehousefor2025.Anotherfourbuildingsarebeingaddedtostockthisyear.LTMcGuinnessislookingtobuilda3,036sqmwarehouse.Itiscurrentlyindesignmode,anditalreadyhasaresourceconsent.Itwilllikelybethelargestnewindustrialbuildingcompletedin2026.Beyondthisweonlyexpectapickupindevelopmentactivityfrom2028onwards.

Asfordemand,wehavealsodowngradedourshort-termrentalforecasts.Thebroadunderlyingdriversremainunchangedandamoresubduedoccupancymarket,combinedwithdiminisheddevelopmentcostpressurestodrivenewconstructioncostrelatedrentincreases,willhaveanegativeimpactonrentalgrowthinthenextfewyears.ThenatureofthePrimevsSecondarymarketintermsofgrossversusnetleasesisfavouringPrimeneteffectiverentgrowthwhereincreasesdrivenbynewbenchmarkrentshavenotbeenerodedbyhigherOpexinthesamewayasforSecondaryproperties.WithOpexescalationssettomoderate,whengrowthresumesfortheSecondarysectorweexpectittoexceedPrimerentgrowthtowardstheendoftheforecastperiod.

WellingtonIndustrialSupplyandDemandForecasts

40,000

30,000

20,000

10,000

0