This equals a population growth of 20.6 percent.
JLL senior consultant Chris McCashin says office and city dwellers will create $10 million worth of food and beverage retailing and $45 milllion of other general retailing to the CBD economy in the next ten years.
“Those retail operators who are focused on convenience and rely on experience are expected to thrive,” McCashin says.
He says the change is already underway, with many retail stores opening up in high density areas to serve the growing population.
“Wellington city is seeing an increase in students and apartment dwellers who are forgoing the use of cars and therefore have limited access to larger city fringe supermarkets,” he says.
“The compact nature of Wellington, with the CBD spanning a mere 3.5 square kilometres creates a prime market for convenience retail due to the ease of public transport or walking whilst carrying bags.”
He says New World Railway Metro is located in a key public transport hub that’s convenient to many workers arriving and departing the station.
“Although there has also been a shift in consumer trends toward online shopping, these metro style stores continue to grow in popularity and JLL expect to see more of these pop up in the future,” McCashin says.
A new Countdown Metro is also set to open in Cable Car Lane later this year. Metro stores stock a smaller range of goods than large-scale supermarkets and usually have a large amount of students and professionals doing their shopping there.
McCashin says it’s an increasingly competitive market out there for Foodstuffs and Progressive Enterprises.
“[They] are capitalising on the high pedestrian count areas such as Willis St and Lambton Quay,” he says.
Lambton Quay is particularly in demand by retailers, he says, so JLL expects to see a fast decline in vacancy rates.
This is in part being driven by David Jones’ impending arrival to the ‘Golden Mile’ on Lambton Quay early next year.