One in every eight central Auckland retail stores is empty, Bayley’s New Zealand Retail Market Update has found.
The update highlighted a 13% vacancy rate in the Auckland CBD, which is higher than Wellington’s 5.3% and Christchurch’s 3.3%.
“If you look at Auckland, it’s gone 12 rounds with Mike Tyson. It had [City Rail Link], Covid-19, work from home, and interest rate increases that have dented consumer confidence,” Bayley’s national director for retail sales and leasing Chris Beasleigh said in a conversation with RNZ.
The said vacancy rate included the former retail giant Smith & Caughey’s, which closed in July.
“The top end of Queen St has been hit harder than the lower end,” Beasleigh said.
“Tourists coming into Auckland normally start at the waterfront and walk up to Victoria St, maybe go up to SkyCity. As you go up Queen St, it gets harder.”
However, Beasleigh sees things mending with the CRL scheduled to open next year and interest rates declining.
“There are new developments coming along, there’s 280 Queen Street, there’s the Raddison Hotel, Timezone have just opened… There’s still confidence out there,” he said.
The New Zealand International Convention Centre is scheduled to open in February 2026, which according to Beasleigh is “going to be a great boost to Auckland,”
“It will take time for those big conferences to get booked in, but that’s a positive.”
Beasleigh also noted that visitor numbers were a varied mix.
“Tourism numbers last year were not bad, but not pre-Covid levels,” he said.
“Cruise ship numbers are going to be down, which is a shame because that’s a big benefit over the summer months.”
Although retail performance has been inconsistent in recent years and the high vacancy rate seems discouraging, Beasleigh emphasised that retail continues to be a vital component of doing business in the country.