Market yields across Auckland’s commercial property sectors experienced their most significant firming since Q2 2021 in the third quarter, according to the latest CBRE research led by Zoltan Moricz, Executive Director and Head of Research, New Zealand.
CBRE’s Q4 Auckland Figures report reveals that yields firmed across 11 property sectors, with the strongest momentum seen in retail centres, CBD and non-CBD office assets, and industrial properties; asset types which are favoured by local investors.
This renewed confidence is underpinned by falling interest rates and increased investment market activity, which are driving greater price clarity and supporting capital value growth.
“Yield margins over 2-year swaps are now above their long-term average, providing a solid foundation for continued firming,” said Zoltan Moricz.
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“Local investors are leading the charge, particularly in retail and industrial properties but with increasing interest in attractively priced, well located office assets. Industrial remains the most liquid market, accounting for nearly half of New Zealand’s transaction volumes in 2025.”
Key findings from the report include:
* Office: CBD A and B grade assets saw yields firm by approximately 10 basis points, reflecting investor focus on well-located core properties with medium-term growth prospects.
Non-CBD office yields also firmed, mainly for B and C grade assets.
Prime office leasing enquiries and inspections lifted in Q3, though overall rents remained stable.
* Retail: Sentiment has turned positive, with local and Australian investors active and seismic policy changes boosting interest.
Retail centres delivered double-digit yield firming in Q3, supported by high absolute yields and improving occupancy in high-quality centres.
* Industrial: Modest firming was recorded in Q3. The sector remains highly liquid, dominating transaction activity this year.
CBRE’s research also highlights that yield firming is becoming more widespread, with the investment market buoyed by the Reserve Bank of New Zealand’s rate cutting cycle and a lift in transaction activity.
The report notes that the current environment is providing greater pricing clarity and renewed momentum for investors seeking value growth.
- Supplied by CBRE
