‘Twelve rounds with Mike Tyson’: One in eight Auckland retail spaces empty, report says

Thursday, 28 August 2025

Auckland's CBD night time hospitality sector is suffering. With punters choosing to stay away from the bright lights.

One in eight Auckland central retail spaces are empty according to a new report.

Bayley’s latest New Zealand Retail Market Update shows a 13% vacancy rate in the Auckland CBD.

The City Rail Link construction, Covid-19, working from home, and interest rate increases were blamed.

According to a new report, one in eight central Auckland retail stores lie empty.

Baley’s latest New Zealand Retail Market Update shows a 13% vacancy rate in the city’s CBD, the highest in New Zealand.

Speaking to RNZ’s Nine to Noon, Bayley’s national director for retail sales and leasing, Chris Beasleigh, said it looked like Auckland had gone “12 rounds with Mike Tyson”.

Bayley’s said the City Rail Link construction, Covid-19, working from home, and interest rate increases had dented consumer confidence.

'The top end of Queen St has been hit harder than the lower end,' Beasleigh said.

'Tourists coming into Auckland normally start at the waterfront and walk up to Victoria Street, maybe go up to SkyCity. As you go up Queen Street it gets harder.'

In June, Stuff reported that the number of retail businesses closing in Auckland had increased yearly since 2021.

The number of closures in the city had gone from 1382 in 2021 to 2063 in 2024.

Queen Street has seen a lot of construction work over the last decade.

One of the most publicised closures was department store Smith & Caughey’s, whose 145-year presence on Queen St ended in June.

Retail NZ Chief Executive Carolyn Young told Stuff they were “not surprised” at the report and that retail businesses have been saying how much of a struggle it is in the Auckland CBD.

“We've been seeing retail businesses close on a regular basis over the last two or three years because of the challenging economic environment. The Auckland CBD is kind of a double whammy with all of the road works and anti-social behaviour that's happening.”

Young said areas like Commercial Bay and the bottom of Queen Street were “new” and “vibrant” while Queen Street itself was not.

“People shopping these days want to have an experience. They don't want to go into an environment that's not enticing, which is why a place like the Newmarket mall goes well. It's a brand new complex with a wide range of retailers to suit every audience.”

Young said she would like to see some “flexibility” from landlords to entice retailers back into the Auckland CBD.

“We're seeing rising lease costs, rising insurance, the rates in the cities now are so high, freight costs have increased, wages have increased, and consumers don't have a lot of disposable income, so that makes a big difference.”

Beasleigh said that despite the current situation, things were improving, especially with the CRL opening in 2026.

'There are new developments coming along, there's 280 Queen St, there's the Raddison Hotel, Timezone have just opened… There's still confidence out there,' he said.

Elsewhere, Wellington had a vacancy rate of 5.3%, Tauranga 3.9%, Christchurch 3.3%, and Dunedin 1.9%.