Retail brands have a New Zealand shopping list

The country’s largest full-service real estate company is positioning itself strongly to optimise opportunities in the retail sales and leasing sectors in 2026, as household budgets find some relief off the back of lower interest rates and with expectations that labour market fundamentals could improve.

Bayleys is actively strengthening its capability in the retail space by expanding its valuation arm following the closure of Jones Lang LaSalle’s Wellington and Christchurch offices, and appointing experienced retail leasing broker Alice Abraham to bolster the Auckland leasing team.

Chris Beasleigh, Bayleys national head of retail says 2025 was a positive one for the firm’s retail brokers and advisors across its comprehensive metro and regional network.

“No-one can deny that retail has been tough for many operators, but there’s been some real success stories too, with exciting new brands entering the marketplace, expansions, acquisitions, and large format retail (LFR) continuing to trade well.

“Bayleys has concluded some notable sales of retail property including several sizeable neighbourhood shopping centres, and we’ve brokered numerous significant and game-changing leasing deals around the country which confirms that retail is actually alive and well.”

In Auckland’s northwest, Bayleys brokered the lease for New Zealand’s largest Kmart store which is now under construction in Westgate’s big-box retail hub. The 6,700sqm Kmart development will provide confidence to other retailers, with Bayleys currently marketing retail space around the crowd-pulling anchor.

“We also leased the former Countdown supermarket in Donovan Street, Blockhouse Bay to Golden Apple supermarket, facilitated the lease for JD Sports at Albany Mega Centre, and brokered the lease for the Haier Concept Store which is coming soon to Great North Road.

“We’re now leasing stage two of the Timaru Showgrounds development, anchored by Bunnings, Chemist Warehouse and Woolworths, and leasing Pinehill Central at Grenville Road on Auckland’s North Shore, having done all the leasing for that development to date including Woolworths, plus for Shore Care across the road.”

Bayleys has strong relationships with corporate retail brands, along with shopping centre developers and landlords which is crucial given increasing engagement from international retailers looking to enter the New Zealand market. Christchurch is very much on the radar for big players in the retail space says Bayleys general manager commercial South Island, William Wallace.

“Several Australian retail brands are actively conducting due diligence and reviewing opportunities in Christchurch and elsewhere around the country. We’re also working with partners nationally to obtain development sites in regional New Zealand as demand for LFR grows.

“Christchurch is a growth hub, and arguably in a better position than the rest of the country given the dynamics at play in the market. There’s huge potential to be unlocked with the forthcoming opening of the One New Zealand stadium, with retail precincts in the vicinity garnering attention.

“National and international businesses are actively wanting to establish a presence in Christchurch. There’s very low vacancy in the CBD’s high street, but compelling opportunities to be found on the city fringe.”

Bayleys has been appointed to lease two prominent shopping centres in Lincoln, with seven tenancies remaining in the 35-tenancy Vernon Drive Shopping Centre development extension, and seven out of 14 brand new tenancies available in the Lincoln Village mixed-use development.

“We’re also handling the leasing of six new tenancies for a greenfield site in Hillmorton, along with LFR space in the Bush Inn Centre in Upper Riccarton, and working with gym operators looking for suitable space from 400sqm – 900sqm across the South Island,” says Wallace.

Bayleys is one of just three firms in the country with recognised shopping centre specialist valuers. Michael Granberg, Bayleys national director retail valuation and advisory says this is a critical consideration for clients due to the complicated nature of the asset class.

“You must ensure that the specialist you engage is across every aspect from reading leases and interviewing managers through to calculating the value.

“Bayleys has undertaken quite complex valuations for listed and private entities, along with providing valuations for a number of new LFR syndication funds that were established in the second half of 2025.

“These clients were looking to get the benefit of much lower interest rates in order to establish funds to purchase LFR assets.”

In the Auckland retail leasing market, broker Alice Abraham says the team’s primary focus in 2026 will be identified growth areas in the CBD, Wynyard Quarter, and Ponsonby.

“Auckland’s CBD and midtown area will undergo reinvigoration and attract more interest from occupiers with the pending opening of the City Rail Link. There are some compelling retail opportunities ahead in the city centre, and also in the evolving Wynyard precinct, with international brands showing interest.

“On the city fringe Ponsonby is ripe for a new wave of business activity after the exit of several fashion brands and changing fortunes of some hospitality operators in recent times.”