Login Support Contact Us

Search Re-Leased

Book a Demo

market-lens-logo

Commercial Real Estate Live Data
NEW ZEALAND

Tenant Health Index

Unlock deeper understanding of tenant dynamics.
The Tenant Health Index (THI) provides a clear, data-driven assessment of tenant occupancy health across New Zealand.

 

 

The Tenant Health Index indicates a renewed stability for New Zealand's commercial property occupiers.

The Tenant Health Index is a new and comprehensive data analysis tool developed to assess the stability and health of commercial property occupiers. Its uses three core streams of metrics that when combined provide a detailed view of the occupier market.

The THI analysed the Industrial, Retail, Office and Hospitality & Leisure sectors in the 12 months to September 2024, using live data from 40,000 leases.  

Key Findings

Average NZ CRE Rent Collection Rates

 

  • The average rent collection rate hit 99% across the four asset classes in the 12 months to September 2024, back to 2019 pre-covid rates
  • The average tenant retention rate, the percentage of occupiers remaining after 12 months, stood at 80% 
  • The average rent retention rate, which compares the levels of rent paid by retained tenants to the previous year, was 88%
  • Retail, with an average rent collection rate of 98.63%, saw the strongest recovery among the four asset classes, bouncing back from historical lows of 48% in April 2020
  • All four asset classes had a positive variance between rent to lease retention indicating rental growth 
  • Industrial leads in rent retention at 95.5%, indicating that landlords can charge premium rents for highly sought-after warehouse and logistics space in Auckland, Wellington and Christchurch. The demand remains strong, with minimal turnover.
  • Hospitality & Leisure is showing positive signs of recovery with a healthy tenant retention rate of 83% 
  • Office despite a lower tenant retention rate of 79% still recorded a high rent retention rate of 86%, suggesting that occupiers that stay are willing to pay more for the right space 
  • Retail shows a tenant retention 73% with a rent retention at 85%, suggesting that of those who maintain leases, landlords have been able to increase rent levels in prime locations, while others have had to offer incentives to keep tenants in place, particularly in non-prime locations.
"The commercial property sector signals a return to cash flow stability. Industrial properties lead in demand, with strong rent collection and tenant retention rates. Office spaces also show stability as businesses prioritise prime locations to support hybrid work models. While the retail sector adapts to online shopping trends, rent retention in key areas remains encouraging, though incentives are sometimes required in non-prime locations. Hospitality & Leisure holds steady in both collection and tenant retention, reflecting a positive trajectory for New Zealand’s commercial real estate." 
— Tom Wallace, CEO of Re-Leased.

re-leased_dark