NEW ZEALAND
CRE OVERVIEW
COMMERCIAL REAL ESTATE DEMAND DRIVER
OFFICE
According to the World Bank, New Zealand is ranked among the world’s top 10 destinations for ease of doing business, especially for its top-tier public services and operational efficiency. This supports business formation and expansion, which in turn underpins demand for office-based employment. Nationally there are estimated to be around 401,000 employment in office-using industries, concentrated in the three main cities.
Auckland accounts for approximately 50% of total office employment in the country, followed by Wellington and Christchurch. Over the longer term, Christchurch has the potential to overtake Wellington in term of employment in office-using industries, as Wellington’s share has been on a downward trend since the 2000s. Looking ahead, driven by a broader economic rebound, employment in office-using industries is forecast to grow by around 1% per annum through to early 2028, reaching approximately 442,000 jobs, before moderating to around 0.3–0.5%
per annum to 2034, lifting the total to around 480,000 jobs. This outlook should continue to support steady baseline demand for office accommodation across the main markets. Auckland’s demand is driven by its scale and economic breadth, with office-using industries contributing an estimated $58.2 billion in Gross Value Added. Based on the structure of the regional economy, professional, financial and insurance services account for a significant share of this activity, given these sectors together represent around 20% of Auckland’s GDP.
Wellington’s office-using industries contributing approximately $17.7 billion in GVA and demand closely tied to the public sector and related professional services, making it more sensitive to government policy and fiscal settings. Christchurch’s office-using industries contributing approximately $12.8 billion in Gross Value Added. Demand is primarily shaped by construction and professional services, which together represent a significant share of the regional economy and underpin office-using activity, particularly construction-related professional services linked to ongoing redevelopment and regeneration.
CHART 9: SHARE OF EMPLOYMENT IN OFFICE-USING INDUSTRIES
CHART 10: EMPLOYMENT IN OFFICE-USING INDUSTRIES IN NEW ZEALAND
Historical
Forecast
600
100%
9%
22%
22%
13%
500
80%
11%
12%
22%
400
60%
17%
15%
300
40%
200
56%
51%
50%
20%
100
0%
2004
2014
2024
0
Auckland Wellington Christchurch Rest of NZ
Source: Moody’s, Cushman & Wakefield Research
Source: Moody’s, Cushman & Wakefield Research
CUSHMAN & WAKEFIELD
1 0
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