Sector and location drive NZ commercial property returns

JLL analyzed 20 years of risk-return data across Auckland and Christchurch commercial property sectors, finding that prime industrial assets and large-format retail in Auckland occupy core or core-plus quadrants while secondary office and traditional retail face value-add challenges. The analysis concludes that geography matters as much as sector selection, with the same asset class exhibiting different risk profiles between cities—for example, Christchurch's industrial market shows lower volatility across all grades compared to Auckland, while retail performance diverges significantly between the two markets.