Christchurch’s CBD retail and hospitality property markets have matured to the point where new stores and entertainment providers are struggling to find space, according to Colliers Christchurch market intelligence presented to the Property Council New Zealand Market Summit 2026.
Vacancies across New Zealand’s second-largest city are at a multi-year low, with demand pushing into every corner of the Four Avenues.
Colliers Christchurch Investment Sales Broker Marius Ogg says the inner city is benefiting from the unique vibrancy introduced through the rebuild, the buzz of experiencing a bright and shiny modern CBD, and a new stadium hosting major events.
“We currently have a halo over the CBD in terms of performance, occupancy, and the high regard for Christchurch from outside the region,” Ogg says.
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“The opening of the One NZ Te Kaha Stadium especially has taken an already bustling Christchurch to the next level with retail tenancies 96 per cent occupied and thriving.
“As the city booms, these well-located assets remain tightly held. This dynamic is likely to help strengthen pricing and yields in Christchurch’s core.”
The CBD retail precinct continues to outperform expectations despite broader economic headwinds.
Cashel Mall was singled out as exceptionally tight, with businesses searching for premises and even approaching existing tenants offering to buy out leases – a sign of genuine scarcity in the city’s premier retail strip.
“We continue to see good-quality retailers looking for opportunities along Cashel Mall, and with very little prime space becoming available, competition for the right tenancies remains strong,” says Colliers Christchurch Retail Leasing Broker Annabelle Bramwell.
Precinct-wide vacancy in the blocks bordered by Oxford Terrace and Lichfield, Manchester, and Hereford Streets has tightened further, falling from 5.6 per cent in 2025 to just 3.9 per cent in 2026.
Total retail frontage stock across the retail precinct sits at 48,271sq m, of which just 1,905sq m remains vacant. This is among the tightest readings the precinct has recorded in recent years.
“Landlords are naturally holding a firmer line on both rent and incentives, and we expect that dynamic to continue for as long as good-quality space in the core remains scarce,” Bramwell says.
Prime rental rates have held steady, but Ogg notes good growth in rents in the areas surrounding the core.
Colliers Christchurch offered a first-of-its-kind snapshot of the hospitality sector within the Four Avenues, breaking the market down by restaurant, bar, and cafe categories across six precincts: Core, East, Gateway, North, South, and West End.
Across the Four Avenues, the CBD supports 102 restaurants, 52 bars, and 93 cafes, with a further five sites currently for lease, taking the total hospitality footprint to 252 premises.
The Core precinct dominates, hosting 44 restaurants, 26 bars, and 38 cafes (plus three vacant hospitality tenancies).
By floor area, restaurants account for around 21,300sq m of space, followed by bars (13,400sq m), and cafes (10,500sq m), with roughly 1,400sq m currently vacant.
Both Colliers Christchurch’s agency and valuation experts emphasise how the city’s economic resilience underpins Canterbury’s comparative attraction for both investors and business operators.
The analysis shows Christchurch ahead of Auckland and Wellington on the property cycle, with the city moving through a ‘rising market’ phase while the other two main centres remain closer to the bottom.
That relative strength was evident across all sectors, but especially in retail and hospitality: strong prime performance, disciplined rent structures, and a hospitality scene that has grown into a substantial and diversified contributor to the city’s commercial footprint.
This is the 33rd year Colliers Christchurch has delivered this market intelligence.
- Supplied by Colliers
