The Green Party has proposed a new framework aimed at reducing the number of vacant commercial properties and revitalizing city centers across New Zealand, with a particular focus on Auckland. Central to the party’s plan is allowing local councils to conduct rental auctions for shops and business premises that have remained unoccupied for more than 12 months.

Under the proposed policy, property owners would be granted an eight-week period to secure tenants before their vacant spaces are subject to an auction process managed by councils. Owners would have the option to appeal the decision if they are planning redevelopment or intend to occupy the premises themselves. The Green Party intends for this mechanism to provide an incentive for landlords to lease their spaces promptly and discourage prolonged vacancies.

Auckland has been specifically highlighted in the policy discussion due to its ongoing challenges related to construction and disruption caused by the City Rail Link (CRL) project. The CRL, New Zealand’s largest infrastructure development connecting previously unlinked rail lines, recently opened after roughly a decade of construction work. The Greens emphasize the need to leverage this new transport infrastructure to boost urban vibrancy and safety in the central business district (CBD).

Data referenced by the party indicates that Auckland’s CBD recorded a 13 percent commercial vacancy rate, the highest in the country. The Green Party believes that activating empty retail and business spaces will not only improve the city’s atmosphere but also support local businesses and employment.

In addition to rental auctions, the Greens plan to amend the current commercial lease market rent review system. The party notes that many existing leases include “ratchet clauses,” which prevent rents from decreasing even when the market softens. This can disadvantage small businesses, especially during periods of reduced consumer spending. The proposed changes, which would apply to businesses with annual turnovers below $30 million, would allow rent reviews to adjust both upwards and downwards, with symmetrical limits on increases and decreases. Furthermore, the policy would prohibit rent reviews that can only be triggered by landlords.

To further assist small businesses, the Green Party also proposes establishing an accessible, low-cost dispute resolution process for commercial lease conflicts. This could be managed by existing bodies such as the Tenancy Tribunal or Disputes Tribunal, or through a newly created entity.

Auckland Central MP and party co-leader Chlöe Swarbrick framed the initiative as a pragmatic approach to enlivening local economies, saying that occupied shops and active streets contribute to safer and more vibrant communities. The Greens contend that their proposals will help sustain small businesses while encouraging new enterprises to occupy vacant commercial spaces, thereby fostering job creation and supporting the broader economy nationwide.