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Bayleys Research


ANNUAL 2007 TAUPO REGIONAL FOCUS REPORT

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Taupo’s Refurbishment Success

The lack of suitable office space and vacant land for further development in Taupo’s CBD has provided the perfect catalyst for a robust commercial office sector. Owners are now focusing on refurbishment as a strategy to alleviate the pressure brought about by a lack of vacant quality space and limited development options. A number of refurbishments of older space within the CBD have taken place in the last 12 months in order to satisfy the needs of prospective tenants and also to attract higher rentals. As a result, any newly refurbished office space in the CBD with suitable attributes is receiving high levels of leasing enquiry similar to that of top quality space.

By way of example, the first floor of the old Le Pine & Co building at 4 Horomatangi Street, vacant for almost 12 months, has recently been leased to Cheal Consultants. In a deal completed by Westerman Property Solutions, the landlord and tenant shared the cost of a significant refurbishment and a favourable lease for both parties was established.

Cheal Consultants moved from premises at 70 Ruapehu Street, which have subsequently been refurbished. As a result, neighbouring Chartered Accountants firm Strettons has expanded into over half of the newly refurbished space with the remaining space converted into smaller offices. However, any tenants looking to occupy space in the building will need to act quickly as a majority of these smaller offices have already been leased. There are also plans for office space above the S.O.B Bar on Heu Heu Street to be refurbished in order to attract further lettings.

The paucity of appropriate office space in the CBD has also had a flow on effect to premises on the CBD fringe, which has experienced an increase in leasing activity and rents over the last 12 months. Rentals for CBD fringe properties now range between $120 and $230 per square metre per annum. The proposed stage 4 development of 1,000m2 at Totara Point Business Park at the end of Totara Street is also looking to take advantage of the current lack of office space and increased rents for fringe located office space.

 

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