New JLL research shows sustainability-rated Prime office buildings are pulling ahead of the broader market with the strongest performers operating near full occupancy.
Results from JLL's latest Auckland and Wellington CBD office survey, covering December 2025, reveal a market that remains clearly segmented, with vacancy outcomes increasingly shaped by a combination of building quality, location and sustainability credentials.
Overall CBD office vacancy across Auckland and Wellington currently stands at 16.6%, a figure that is elevated but appears to be stabilising as business confidence gradually recovers and occupiers begin to make longer-term workplace commitments.
But Chris Dibble, Head of Research and Strategic Consulting at JLL, says that headline figure tells only part of the story.
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"The overall vacancy rate masks very significant variation across different building types. When you look at where occupiers are actually choosing to locate, a clear pattern emerges. Quality and sustainability are increasingly inseparable."
Focusing on Prime-grade office space, vacancy tightens to 9.9%, reinforcing a long-standing trend across both CBDs.
Hina Uqaili, Associate Director of Research at JLL, says it's important to understand what's driving the result and what isn't. Photo / Supplied
Even in a softer demand environment, well-located buildings with efficient floorplates, strong amenities and modern workplace credentials have remained comparatively resilient.
The picture becomes more compelling when sustainability ratings are factored in.
Prime buildings holding both Green Star and NABERSNZ ratings record vacancy of 7.6%, already well below the broader market.
Most striking is the performance of NABERSNZ-rated Prime buildings specifically, where vacancy sits at just 4.2%.
"Those assets are effectively operating at frictional vacancy levels," says Dibble. "That's a notable result given the broader leasing environment, and it points to a genuine depth of occupier demand for the right buildings in the right locations."
Hina Uqaili, Associate Director of Research at JLL, says it's important to understand what's driving the result and what isn't.
"Sustainability credentials aren't replacing the fundamentals. Location, design quality, transport connectivity and landlord capability remain the primary drivers of leasing performance.
"What we're seeing is that sustainability ratings are enhancing those strengths. This is particularly noticeable in submarkets where occupiers have multiple high-quality options to choose from."
For occupiers, she says, energy performance and independently verified ratings are increasingly relevant to the decision-making process.
"Buildings with strong, transparent sustainability performance can offer greater certainty around operating costs and alignment with corporate environmental objectives. That assurance can be a genuine differentiator at the margin."
For building owners, the survey highlights the role sustainability can play in maintaining competitiveness during periods of subdued demand. Assets that combine strong fundamentals with credible performance ratings appear better positioned to attract and retain tenants, and to mitigate longer-term obsolescence risk.
Dibble says the outlook points to continued concentration of demand within a narrower pool of buildings.
"As economic conditions stabilise and occupier confidence continues to improve, competition for the best space is only going to intensify.
"In that environment, the interaction between quality, location and sustainability will become even more influential in determining who wins and who waits."
- Supplied by JLL
