around the country
Find out what’s happening in the commercial market from the
far north of New Zealand to the south.
By James Vincent
NAI Harcourts Kerikeri
The Upper North Island Supply Chain Strategy,
which is the proposed project to move Ports of
Auckland to Northland (NORTHPORT), goes to
cabinet next month. The estimated $10 billion
project, which would see an upgrade to the
rail line as far north as Otiria, would bring the
Far North considerably closer to Auckland and
open up accessibility for the agriculture and
horticulture industries in the region.
There are currently hundreds of hectares of
land within close proximity of Kerikeri township
under investigation for development as the
Far North continues to expand. As well as
providing significant housing opportunities,
these developments should also drive serious
growth in the commercial and business sectors.
Waipapa is expected to continue its emergence
as the commercial service centre of the Far
North and is a great prospect for national
retailers for the future.
The shortage of seasonal workers across the
country has been well documented through
the news. Northland has a significant number
of RSE’s (Recognised Seasonal Employers)
across the horticulture and viticulture sectors.
In 2019, a 12% growth in employees has been
recorded nationally with employers reporting
increases in employment from other sources
as well. 45% of all RSEs surveyed indicated
business expansion and growth as a driver
for the rise, with increased canopy hectares
and expected yields. This is excellent news for
the industry and employment in general. In
Kerikeri, this increase can be seen in Seeka’s
$20 million development of a new packhouse
and processing facility.
2019 tourism numbers should be bolstered by
an increased number of cruise ships into Paihia.
This shapes up nicely for tourism businesses
and retailers alike in the Bay of Islands. We are
seeing some local businesses relocate closer to
Paihia to offer quality experiences for the cruise
OFFICE & RETAIL
Rents have been increasing over the last
12 months within the main towns, and some
retailers are heading out of town to Waipapa
where rents are more affordable and more
parking is available. There are three key retail
spaces available in Kerikeri township which
have been vacant for over six months. These are
prime sites for national retailers.
We have seen some movement in office
spaces with Crombie Lockwood moving into
new premises on Kerikeri Rd. There are still
a number of office spaces available in town
ranging from 30 square metres to 250 square
metres of floor space.
It has been a soft winter with stock a little
harder to fill and some quality builds still
vacant after four months. Rental rates are
sitting at $120 to $160 per square metre to
lease quality industrial building space.
There is a prime opportunity directly opposite
the Bay of Islands airport to lease two
240 square metre industrial buildings. These
buildings are ideally suited to car hire,
warehousing or distribution facilities.
Whilst there are no significant new builds on
the horizon, several national organisations are
taking notice of the growth in the Far North.
It is expected that the region will attract further
interest from these types of organisations in the
Recent transactions are showing investment
yields at 5% for quality tilt slab construction
within Kerikeri and surrounds.
10 LOCAL EXPERTS, GLOBAL NETWORK. naiharcourts.co.nz