A local economy fuelled by a booming port, a bullish kiwifruit industry, significant road infrastructure improvements and continued strong population/housing growth should underpin Tauranga’ s commercial and industrial property market over the short
In particular, completion of dredging to allow bigger ships in the port next year is expected to increase port capacity and lead to further demand for storage and logistics space. The meeting of this demand will be helped by the completion of the Eastern Link Road by July 2015 which will open up vast tracts of land for further development.
Within the CBD recent approval for the building of a university campus and the development of two major office schemes over the next few years should act as a major catalyst in revitalising the central city and boosting demand for retail services.
A growing divergence between prime and secondary vacancies is occurring in the CBD with very tight conditions prevailing for better grades of space compared to rising vacancies amongst secondary properties. Read more...
The growth in suburban shopping centres over recent years has had a negative impact on CBD retailers. Vacancies amongst CBD shops are becoming
increasingly visible and will take time to fill. Read more...
Bayleys Research industrial vacancy survey for Tauranga has the overall industrial vacancy at 13.5% at January 2015. Vacancies vary greatly amongst the key areas with Tauriko at almost zero vacancy (0.8%) and Mt Maunganui at the other end of the scale with 17.3% vacancy. Read more...
Port of Tauranga update
Port of Tauranga (POT) recently commenced a harbour and channel dredging programme that will allow it to accommodate the next generation of container ships as well as larger bulk and cruise ships. The $50m2 dredging programme will complete a $200m capital investment programme, which has seen an extension to the Sulphur Point wharves, upgrading of tugs and the addition of container cranes and straddles. Read more...
Read the full MARKETBEAT report here.