Lease Lengths
in Focus
Lease length shows how long income is secured before it must be negotiated again. In this edition of Market Lens, we examine how starting lease terms for office, industrial and retail property have shifted across Australia, New Zealand and the United Kingdom in Q3 2026, and what that means for renewal planning and portfolio strategy.
Q3 2026
July, August and September 2026
Markets
Australia · New Zealand · United Kingdom
Asset classes
Explore the Market Lens Report
50.6%
of Australian industrial leases ran one to three years
−54.1%
NZ office average lease length against Q3 2019, from 75.2 to 34.5 months
66.8%
of UK retail leases ran under three years, the highest in the report
3 of 3
markets where retail average lease length fell year on year
Key Findings Preview
01
Retail is the common shortening story. Q3 average lease lengths fell year on year in all three markets, while the share of terms under three years increased. The shift was strongest in the UK, where two-thirds of retail starts ran under 36 months.
02
Office and industrial move differently by market. UK office terms lengthened year on year, while Australia and New Zealand shortened. New Zealand industrial recorded a stronger Q3 average; UK industrial retained a much longer-dated term mix.
03
Renewal timing is the practical priority. Shorter commitments bring leasing decisions forward. Map the rent attached to upcoming breaks and expiries, then compare renewal with replacement on net income.
04
Every market is well below pre-pandemic baseline of 2019. Q3 average lease lengths were at least 31% lower than in Q3 2019 across all nine sector–market combinations, with New Zealand office and UK retail roughly half their 2019 levels.