The first revaluation of Wellington properties for three years shows a big drop in the value of commercial buildings that need earthquake strengthening work.
Property valuer Quotable Value says 455 of the city's 5105 commercial buildings have had their values fall by 20% or more since 2009.
It says two buildings need so much work their values have fallen by between 80% and 100%.
Wellington's operations manager for QV, David Nagel, says people are put off leasing properties which are not up to code and some have been vacating them for stronger buildings.
The Wellington City Council acknowledges expensive strengthening work is going to be an obstacle for some owners and has been lobbying banks and the Government to provide financial incentives.
It wants banks to cut interest rates and the Government to make strengthening work tax deductible.
The council says it anticipates some demolition of buildings by owners who do not find it economically viable to strengthen and has already received a handful of applications for resource consent.
