Greens Announce City Centre Vibrancy Policy
The Green Party has today announced a plan to get small businesses a fair deal by making sure market rent reviews can lower rents, and by giving councils the power to auction leases on shops that have been empty for more than a year.
“We want thriving towns and cities, which means filling vacant spaces with our country’s limitless talent, creativity and entrepreneurship. The Greens are here to support our local economy,” says Green Party Co-leader and Auckland Central MP, Chlöe Swarbrick.
“After years of construction and disruption in Auckland city centre, we can and must make the most of our awesome new City Rail Link by actively supporting vibrancy, which in turn makes our city safer.”
“On most main streets in New Zealand you can find empty shops next door to small businesses paying high rents that were set when the market was stronger.”
“Current commercial leasing rules let rents rise when the market goes up and hold them up when it goes down. Small businesses end up paying more than the market rate when consumer spending slows down.”
“Many commercial leases contain a ratchet clause, which means a market rent review can never set the rent below what the tenant already pays. Property Council New Zealand’s own standard lease, released in 2025, keeps a hard ratchet for every rent review.”
“We will change the law so a market rent review can lower the rent as well as raise it. This will apply to new and existing leases for businesses with turnover under $30 million.”
“Where a shop has been empty for more than a year, the local council will be able to give the landlord eight weeks to find a tenant. If the landlord doesn’t find one, the council can auction a lease. Councils in England have had this power since 2024.”
“We will ensure a low-cost tribunal for commercial lease disputes, because small businesses currently can’t take these disputes to either the Tenancy Tribunal or the Disputes Tribunal.”
“When local businesses fill our main streets, more people come into town, there’s more to do, and everyone has a better, safer time.”
“These common-sense changes will help small businesses stay open and help new ones fill empty spaces, supporting job creation, the local economy, and cities and towns that work better for all of us,” says Swarbrick.
NOTE:
The Green Party plan for city centre vibrancy will:
1. Make market rent reviews work both ways
When a commercial lease provides for a market rent review, the reviewed rent must be able to go down as well as up.
Any limit on how far rent can fall after a review must match the limit on how far it can rise. For example, a 5 per cent cap on reductions means a 5 per cent cap on increases.
Rent-review triggers that only the landlord can use will be banned.
The changes apply to new and existing leases for businesses with turnover under $30 million.
A rent adjustment under these rules will not count as a breach of a mortgage, loan covenant or other financing agreement.
The Green Party will also investigate whether market rent assessments should use net effective rents. This would include greater disclosure of rent-free periods, fit-out contributions and other incentives in comparable leases.
2. Give councils the power to auction leases on long-empty shops
Councils will have the power to run rental auctions for shops and business spaces in central cities/central business districts that have been empty for more than 12 months.
The landlord gets an eight-week grace period to find their own tenant.
Landlords can appeal where redevelopment is planned or they intend to occupy the premises themselves.
If no tenant is found, the council can auction a lease, modelled on the UK’s High Street Rental Auction.
A lease granted through an auction is legally deemed to have the mortgagee’s consent.
3. Create a low-cost way to resolve commercial lease disputes
Small businesses will be able to take qualifying commercial lease disputes to a low-cost tribunal. This could be the Tenancy Tribunal, the Disputes Tribunal or a dedicated body.
For rent-review disputes, the tribunal will be able to use final-offer arbitration. Each side submits a figure and the adjudicator chooses one of them.
