New retail spaces are available for lease in Tauranga’s Papamoa Plaza and Wanganui thanks to new mandates to reposition and lease parts of regional shopping centres won by commercial real estate services and investment firm CBRE New Zealand.
In Papamoa Plaza, 14,000sqm of retail space is being refurbished and is due to open in September this year. There are 25 available spaces, which will range in size from 50sqm to 250sqm. A representative said rental rates would range from $300 to $950 per square metre, with anchor tenants being Countdown and The Warehouse. A further 6,000sqm of new space will be created over the next 12 months.
CBRE NZ’s national director retail services, Grant Unsworth, says Papamoa is Tauranga’s largest suburb, and the Papamoa Plaza is the only covered shopping centre servicing it.
“Currently offering 25 retail stores that attract more than 2.5 million people and generating more than $52 million in annual sales, the centre is now adding fashion and food offerings as it aims to become the region’s largest single-site offer servicing Tauranga’s largest suburb and surrounding area,” Unsworth says. “Papamoa is a fast-growing area, a growth node for the city. Close to a road of national significance in an established retail precinct, the centre has solid anchors and is growing through owner Cephas Property Management’s proven management track record.”
In Wanganui, CBRE NZ is looking for tenants for the site of a former Briscoes store, with 2098sqm on offer, and 1200sqm of the new Farmers development on Victoria Avenue. There are 13 available spaces in this latter development ranging from 70sqm to 160sqm at rental rates ranging from $300 to $600 per square metre. Prices for the former Briscoes building go from $160 to $200 per square metre.
Jonathan Curtis, CBRE NZ’s associate director retail services, says that the developments will breathe new life into Wanganui’s fashion and food precinct.
“Plans are underway and we are looking at the tenancy mix, as well as the look and feel, all geared to improving choices in the Wanganui market. As the buildings are all new there will be no seismic strengthening issues, just a great opportunity for retailers to complement Farmers and locate into footprints that will work for a mix of retailers.”
The company says a recent survey it ran across retail consumes shows that younger shoppers are still interested in a bricks and mortar shopping experience, with 24 percent of 18-24 year olds surveyed saying they intended to spend more in traditional stores over the next two years. However, 43 percent expect to increase their online spending.
Unsworth says the trends are encouraging for bricks and mortar retailers – and owners of retail property.
“Online retailing is a well-known trend. However, what the survey illustrates is the ongoing relevance of bricks and mortar, particularly among lower income brackets and those aged 18-24. Retailers and centres that adopt dual ‘bricks and clicks’ strategies will also be well-placed. Shopping centres must also continue to improve and offer shoppers convenience, plenty of parking, an attractive environment and other compelling reasons to visit.”