Premium grade floorspace remains sought-after among tenants in Wellington’s office leasing market.
The latest research from Colliers indicates that while overall vacancy rates increased in 2025, the premium corner of the market, which consists of the highest-quality buildings in the capital, has no available space.
These properties are newly developed, typically steel-framed buildings. They benefit from their location, larger floorplates, and seismic resilience that is characterised by structural innovation such as base isolation or viscous damper technology.
Steve Maitland, Director of Office Leasing at Colliers Wellington, says the leasing market experienced a boost in sentiment to begin the year, although the war in the Middle East has brought caution.
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“Activity levels were on the rise in the early stages of 2026 as many organisations have now been through Covid and the subsequent restructuring programmes,” Maitland says.
“Landlords were pessimistic throughout 2025, which was characterised by a large proportion of tenants with looming lease expiries opting to stay in their existing premises on renewed terms.
“Tenant incentives are now a notable feature of the market with more landlords being prepared to pay towards a fit-out or offer ‘rent free’ periods to induce tenants to shift. This is leading tenants to consider a move.”
While 2025 was slow, in the final quarter there were some notable deals brokered by the Colliers Wellington team, including Beca taking two floors in the new building developed by Precinct Properties at 55 Molesworth Street.
This recently opened building is anchored by the Ministry of Foreign Affairs and Trade and is also tenanted by MetService.
Elsewhere, Land Information New Zealand subleased 3,600sq m of space at 7 Waterloo Quay.
Meanwhile, major strengthening projects at notable office buildings at 13-27 Manners Street, 80 The Terrace, and Harbour Tower at 2-11 Hunter Street will provide tenants with more opportunities as the year progresses.
The Wellington CBD Office Essentials report that was recently released by the Colliers Research & Economics team highlights some of the challenges the office sector faces in the capital.
Demand softened in the second half of last year, reflecting a weaker economic backdrop and reduced public sector office requirements.
Overall vacancy increased to 12.3 per cent in December 2025, up from 11.2 per cent in June, and 10.5 per cent a year earlier marking the highest level recorded in over a decade.
Prime vacancy, which consists of premium and A-grade stock, increased to 7.5 per cent, up from 5.7 per cent six months earlier, while secondary vacancy sits at 14.4 per cent.
The overall inventory of office stock rose by roughly 1.8 per cent across 2025 with the developments at 2 Aitken Street and 55 Molesworth Street contributing to the increase.
Looking forward, the development pipeline begins to thin once projects currently underway are completed.
Hamish Fitchett, National Director of Research & Economics at Colliers, says there’s a combination of factors that have led to the increase in vacancy rates.
“In the near term, vacancy is expected to increase as recently completed developments are absorbed, and space from tenant relocations returns to the market,” Fitchett says.
“However, improved availability, particularly in the prime segment of the market, is likely to support leasing activity as occupiers take the opportunity to upgrade.
"The developing oil shock is dampening economic activity globally, however, during crisis periods, the Government faces increased demands, and therefore, Wellington may prove more resilient to this shock than other markets.
“The professional services sectors that demand office space are less dependent on energy for their outputs. This means that demand for office stock is less directly affected by the global oil shock than other parts of our economy.”
- Supplied by Colliers
