NO TURNING BACK NOW Market Indicators Report | 2016 - NEW ZEALAND RETAIL - Colliers International
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Market Indicators Report | 2016 NEW ZEALAND RETAIL NO TURNING BACK NOW Accelerating success.
The Terrace Christchurch CBD, Christchurch The Terrace is a $140 million redevelopment of the Christchurch hospitality precinct previously known as The Strip on Oxford Terrace. The precinct is being developed by Hereford Holdings Limited and will include 3,500 sqm of retail space. It is due for completion in early 2017 and will incorporate premium restaurants and bars, laneways, courtyards and roof terraces. Artist's impression
Contents Key Nationwide Trends 1 Introduction 3 Key Findings 3 Retail Market Indicators 4 Auckland 5 Wellington 7 Christchurch 9 Hamilton 10 Palmerston North 10 Nelson 10 Queenstown 11 Rotorua 11 Hawke's Bay 11 Tauranga/Mt Maunganui 12 Dunedin 12 Outlook 13 Retail Leasing Activity 14 Retail Sales Activity 15 Retail Developments 16 colliers.co.nz/Find-Research Join our LinkedIn group: Colliers International New Zealand Network
IN BRIEF
NEW ZEALAND RETAIL
Q2 2016 REVIEW
1 AUCKL AND 2 HAMILTON
Vacancy 4.3% Average Prime Net Rent $388/sqm
Average Prime Net Rent $1,017/sqm Average Secondary Net Rent $175/sqm
Average Secondary Net Rent $513/sqm Average Prime Market Yield 7.00%
Average Prime Market Yield 5.91% Average Secondary Market Yield 9.13%
Average Secondary Market Yield 8.05%
OUTLOOK: Demand Supply
Retail Investor Confidence:
net positive 48%
3
OUTLOOK: Demand Supply
TAURANGA/MT MAUNGANUI
Average Prime Net Rent $444/sqm
Average Secondary Net Rent $231/sqm
Average Prime Market Yield 6.25%
Average Secondary Market Yield 7.25%
OUTLOOK: Demand Supply
8
10 DUNEDIN
Vacancy 7.6%
Average Prime Net Rent $825/sqm
Average Secondary Net Rent $300/sqm
Average Prime Market Yield 7.13%
Average Secondary Market Yield 9.75%
9
OUTLOOK: Demand Supply
11 QUEENSTOWN
Average Prime Net Rent $1,650/sqm
Average Secondary Net Rent $725/sqm
Average Prime Market Yield 4.50% 11
Average Secondary Market Yield 5.50%
OUTLOOK: Demand Supply 10
Source: Colliers International Research
Note: Rents are based on averages.
Refer to Market Indicators on page 4 for futher breakdown.
1
4
ROTORUA
Average Prime Net Rent $265/sqm
Average Secondary Net Rent $150/sqm
1 Average Prime Market Yield
Average Secondary Market Yield
8.50%
10.50%
OUTLOOK: Demand Supply
3
2
4 5
HAWKE'S BAY
Average Prime Net Rent $423/sqm
Average Secondary Net Rent $248/sqm
Average Prime Market Yield 7.31%
Average Secondary Market Yield 8.38%
5 OUTLOOK: Demand Supply
6
PALMERSTON NORTH
Average Prime Net Rent $450/sqm
6 Average Secondary Net Rent $225/sqm
Average Prime Market Yield 7.50%
Average Secondary Market Yield 10.00%
7 OUTLOOK: Demand Supply
7 WELLINGTON
Vacancy 8.9%
Average Prime Net Rent* $1,257/sqm
8 NELSON
Average Secondary Net Rent* $732/sqm
Average Prime Market Yield 6.85%
Average Prime Net Rent $575/sqm Average Secondary Market Yield 7.38%
Average Secondary Net Rent $325/sqm
Average Prime Market Yield 6.75% Retail Investor Confidence:
Average Secondary Market Yield 7.25% net positive 30%
OUTLOOK: Demand Supply OUTLOOK: Demand Supply
Gross Rents*
9 CHRISTCHURCH
Average Prime Net Rent $813/sqm
Average Secondary Net Rent $450/sqm
Average Prime Market Yield 7.25%
Average Secondary Market Yield 8.38%
Retail Investor Confidence:
net positive 12%
OUTLOOK: Demand Supply
2
Introduction New Zealand Retail CBD Market Indicator Summary
Average Net Prime Rents Average Prime Capital Values
Eight years on from the global financial crisis, many retailers have Q2 2015 – Q2 2015 –
12 Month 12 Month
streamlined their operations, ramped up their sales campaigns and, Q2 2016 Q2 2016
Forecast Forecast
(% Change) (% Change)
in some cases, rationalised their space to meet the changing demand
of the new consumer. Auckland 3.5% 10.3%
Hamilton 3.5% 11.1%
New Zealand is also receiving more enquiry from international
retailers and a select few national retailers are looking to expand their Tauranga 0.0% 0.0%
footprint with a more targeted approach. For these retailers, the new Wellington* 3.7% 4.2%
strategies being employed – although challenging – are working.
Christchurch 0.0% N/A
However, not all retailers have upped the ante, and some major retail Dunedin 0.0% 4.7%
brands have closed their doors for good. This is an important reminder
for many to stay focussed and not lose sight of the end game. On the Source: Colliers International Research
*Based on gross rents
flip side, the closures provide opportunities for other retailers to secure
prime spots and employ a better retailing approach.
These underlying conditions have given buoyancy to property New Zealand Retail Sales by Industry
leasing enquiry and activity. We are seeing occupancy highs in many
locations – albeit retailers sticking to basics are the winners. Supermarket & Grocery Retail High Street Retail Bulk Retail
20%
Many retail owners are inspired by the new look and forward facing
approach, but are mindful of where the sector sits in the cycle and Annual Percentage Change 15%
the added requirements for immersion and interaction required. 10%
While interest rates are dragging down inflation and margins, it is
5%
keeping rents down and investor purchasing activity high.
0%
Jun-98
Jun-99
Jun-02
Jun-08
J u n -1 1
Jun-00
Jun-12
Jun-13
Jun-15
Jun-16
Jun-01
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-09
Jun-10
Jun-14
-5%
Key Findings
-10%
-15%
-20%
>>A prolonged period of economic prosperity has encouraged Source: NZStats, Colliers International Research
consumers to spend more, and retailers to keep enticing them Note: Seasonally adjusted
with great deals. The perceived boost in wealth from house price
rises nationally is advantageous. While interest rates remain
low, retail activity will remain high.
>> Auckland’s vacancy rates are at or near record lows depending on
New Zealand Shopping Centres
the sector. Construction activity is rising, but not enough in the
Town Centre Sub Regional Centre Regional Centre Other
right areas to keep rents from rising further. Investors remain
Neighbourhood Centre Major Regional Centre District Centre
extremely confident, which will push yields lower.
City Centre Bulk Retail
>> The rise in new entrants to Wellington and more retailers relocating
around the CBD confirms the dramatic upturn in the market’s 2016
strength in less than 18 months. The challenge for the sector will be 2014
how to keep up with this heightened level of demand. Rents are rising
2012
as a consequence of the demand, and investors are eyeing up their
2010
next move. Investor confidence is the strongest it’s been this cycle
and the future looks bright. 2008
2006
>> A bounce back in investor confidence in Christchurch cements the
sector’s new growth path. Certainty in the sector is being driven by 2004
Year
enquiry translating into activity. This is a feature across all property 2002
types. Momentum is now building and the market’s appreciation 2000
of better times ahead will be showcased in rent and investor activity 1998
over the next 12 months.
1996
>> Trends in regional markets show that retailers sticking to the basics
1994
of locating in strong catchments while providing customers with
1992
the right product and service levels are experiencing the best
outcomes. Landlords are conscious of the difficult trading environ- 1990
ment, but are also cognisant of the need to increase returns. At this 0 1 2 3
stage, much of the capital appreciation is from a firming yield Total Supply (sqm, millions)
environment. While this is expected to continue, rent rises will be
a top priority for landlords in the coming months. Source: PCNZ, Colliers International Research
3
New Zealand Retail Market Indicators Q2 2016
Net Prime Rents Net Secondary Rents Prime Capital Value* Secondary Capital Prime Market Secondary Market
Precinct ($/m²) ($/m²) ($/m²) Value* ($/m²) Yields** (%) Yields** (%)
Low High Low High Low High Low High Low High Low High
AUCKLAND
CBD 1,700 4,200 700 900 26,155 84,000 7,370 11,615 5.00% 6.50% 7.75% 9.50%
Newmarket 800 2,000 500 750 12,310 44,445 5,000 9,375 4.50% 6.50% 8.00% 10.00%
Ponsonby Road 750 1,350 500 700 11,540 28,420 N/A N/A 4.75% 6.50% N/A N/A
Parnell Rise 550 850 N/A N/A 7,855 17,000 N/A N/A 5.00% 7.00% N/A N/A
Dominion Road 250 520 N/A N/A 3,450 9,455 N/A N/A 5.50% 7.25% N/A N/A
Takapuna 500 1,000 300 450 7,145 20,000 3,530 6,000 5.00% 7.00% 7.50% 8.50%
HAMILTON
CBD 250 525 100 250 3,335 8,075 975 3,125 6.50% 7.50% 8.00% 10.25%
ROTORUA
CBD 180 350 100 200 2,120 4,665 835 2,220 6.75% 7.50% 8.50% 9.00%
TAURANGA
CBD 300 500 175 250 4,000 7,690 1,945 3,335 6.50% 7.50% 7.50% 9.00%
MT MAUNGANUI
CBD 375 600 200 300 6,820 15,000 3,075 6,000 4.50% 6.00% 5.50% 7.00%
NAPIER
CBD 450 700 200 450 6,000 10,770 2,500 6,000 6.50% 7.50% 7.50% 8.00%
HASTINGS
CBD 220 320 120 220 2,750 4,415 1,200 2,750 7.25% 8.00% 8.00% 10.00%
PALMERSTON NORTH
CBD 300 600 150 300 3,750 8,570 1,365 3,335 7.00% 8.00% 9.00% 11.00%
WELLINGTON
Lambton Quay 1,720 1,855 531 620 24,570 30,915 7,080 8,550 6.00% 7.00% 7.25% 7.50%
Willis Street 752 1,087 N/A N/A 10,025 16,725 N/A N/A 6.50% 7.50% N/A N/A
Courtenay Place 649 864 N/A N/A 8,655 13,290 N/A N/A 6.50% 7.50% N/A N/A
Cuba Mall 561 947 N/A N/A 7,480 14,570 N/A N/A 6.50% 7.50% N/A N/A
NELSON
CBD 450 700 250 400 6,000 11,665 3,335 5,715 6.00% 7.50% 7.00% 7.50%
CHRISTCHURCH
City Mall 650 1,200 350 500 9,000 15,000 4,500 7,000 6.00% 7.50% 7.50% 9.00%
CBD 600 800 350 600 8,500 12,000 4,000 7,000 7.00% 8.50% 8.00% 9.00%
QUEENSTOWN
CBD 1,300 2,000 450 1,000 26,000 50,000 7,500 20,000 4.00% 5.00% 5.00% 6.00%
DUNEDIN
CBD 500 1,150 150 450 5,880 20,000 1,365 5,295 5.75% 8.50% 8.50% 11.00%
Main Retail Centres Market Indicators Q2 2016
Net Face Rents Operating Expense Prime Capital Value* Prime Market Yields**
Shopping Centres ($/m²) ($/m²) ($/m²) (%)
Low High Low High Low High Low High
AUCKLAND
Regional Shopping Centres 650 1,650 170 270 8,125 27,500 6.00% 8.00%
District Shopping Centres 260 750 150 230 2,735 11,110 6.75% 9.50%
Bulk Retail Centres 200 450 45 75 2,160 6,785 6.63% 9.25%
WELLINGTON
Regional Shopping Centres 500 1,100 170 270 5,555 16,295 6.75% 9.00%
District Shopping Centres 300 950 270 300 3,000 11,875 8.00% 10.00%
Bulk Retail Centres 205 300 45 75 2,160 3,750 8.00% 9.50%
CHRISTCHURCH
Regional Shopping Centre 600 2,500 170 270 6,665 25,715 7.00% 9.00%
District Shopping Centres 350 1,800 150 230 3,500 31,250 8.00% 10.00%
Bulk Retail Centres 200 330 25 60 2,105 4,715 7.00% 9.50%
Source: Colliers International Research Assumes 100-200 sqm shop *Assuming fully leased at market rates **Assuming freehold where appropriate
Note: Figures are rounded
4
Auckland Auckland Retail Vacancy Rate
June 2015 June 2016
12%
Demand strong in the CBD 10%
8%
Vacancy Rates
Auckland CBD’s vacant space is the lowest in eight years, with only
6%
3,030 sqm of available space. However, the 2.7% vacancy rate is up
from 2.5% last year. The key reason for this anomaly is the reduction 4%
in total stock due to the demolition of the Downtown Shopping 2%
Centre to make way for 100 new shops by October 2018. MidCity
0%
centre’s first level retail continues to provide the majority of vacant
Overall
CBD
Queen St
Newmarket
Parnell
Ponsonby Rd
Dominion Rd
Takapuna
Henderson
Massey North
/Westgate
space in the CBD.
Beyond the CBD, vacancy rates have edged up in the suburban
markets, as retailers jostle for the hottest spots. West Auckland is
Source: Colliers International Research
a prime example, with the Westgate Town Centre attracting a
number of national and local retailers from secondary locations.
The Shopping Centre vacancy rate has also increased, up to
1.7% from 1.3%.
Footlocker
Supply pipeline increases 191 Queen Street, Auckland CBD
Total CBD supply has reduced by approximately 10% while con-
struction work takes place on the redevelopment of Downtown.
This has seen pressure on the limited supply in the CBD, as many
of the tenants have moved out of the centre and into the streets.
The NDG Centre has been deferred from 2021 and it will likely be
another one to two years before any further announcements are
made. Premises for Tiffany & Co. and Chanel in Britomart are
nearing the end of refurbishment which will provide additional
luxury retail space to the CBD. Shopping centre supply (which
includes all types of retail centres) has grown further over the
past year. The development pipeline remains healthy with an
additional 125,000 sqm under construction.
Robert Jones Holdings Limited has leased 662 sqm of prime Level 1
retail space at 191 Queen Street to Footlocker. Retailers nearby include
Rents and incentives likely to stabilise TopShop and Cue, and the frontage on Queen Street provides exposure
to high pedestrian flows.
Auckland CBD rents have risen again – despite already reaching
record highs. Average prime net face rents are now $2,950/sqm with
more than $4,000/sqm the highest rent achieved. Many landlords
are likely to lower their expectations in rent rises over the next year,
albeit further rental growth at the bottom end is still expected.
Bulk retail premises are approximately one-tenth the cost of prime
Three Kings Shopping Centre and Plaza
Auckland
CBD rates. Low inflation numbers continue to drag on retailers’
margins and the ability of non-CBD landlords to push up rents.
Investors are positive
Investors in Auckland retail property expect conditions to improve
over the next 12 months with a net positive 48% (optimists minus
pessimists), according to our latest investor confidence survey.
Although this is lower than the office and industrial sectors, this
is the highest level of retail enthusiasm since the survey began in
early 2006. The high levels of confidence combined with low interest
rates will push yields lower and capital values higher. The rate of
change will likely be less than previous periods as the gap between
yields and debt costs reduces. Antipodean Properties has sold Three Kings Shopping Centre and Plaza to
a private investor for $37 million, reflecting a yield of 5.88%. The sale of the
10,000 sqm centre is unconditional and is due to settle mid-November.
5
SOU
TH
ER
N
MW
Y
Cust
oms
St We BRITOMART
st Luxury/International
Northern Shopping Centres
1.6% $3,600
SOU
1.7%
TH
National Branded
18
ER
Sh o
Y Takapuna 3.3% $2,700 r t l a n d St
N
W
M
MW
O UR 2.9% $750 6.00% ia St
West
Y
V ict o r
t
B
High S
Vict
H AR Col le ge Hil l
oria
St E
t
ast
en S
ER
AUCK
Wel
Q ue
les
P
ley S
UP
t We
st
LA
Entertainment/Service
ND
2.5% $2,100
H
Ponsonby
N O RT H
t
A
en S
Auckland CBD
M
IL
Q ue
2.2% $1,050 5.63%
y
TO
le
ES
an
W
TE
N
We
St
RN
ll
MW
HW
es
Y
l ey
St
Y
ED
Ea
POS
t
en S
st
Parnell
PRO
16
Q ue
16
10.6% $700 6.00%
Henderson
Central Shopping Centres
5.6% $325 6.13%
2.5%
St
Newmarket
t
ley
en S
an
3.9% $1,400 5.50%
Que
St
SO
UT
H SOUTH
WE ER
Western Shopping Centres ST N
ER
Rd N
2.5% er MW
Dominion Rd
M
m
W
um Y
Cr
Y
6.3% $38516 6.38%
PROPOSED
Y
W
M
N
A
R
E
KEY
T
U
S
CK
E
W
LA
H
Overall
T
ND
R
Vacancy Rates (%) Southern Shopping Centres Eastern Shopping Centres
O
N
HA
Average Prime Retail 0.7% 0.1%
Net Rents ($/m2)
M
IL
Average Prime TO
Market Yields (%) N
H
W
Trend: June 15 - June 16 20
Y
Actual June 16 figure 0%/$0
No Change
Source: Colliers International Research
Note: Shopping centres include city centres, town centres, regional centres,
district centres, neighbourhood centres, bulk retail centres and others.
Auckland Retail Market Review
2016 compared to 2015
Enquiry = Average prime net rents $1,017/sqm
Consumer confidence = Average secondary net rents $513/sqm
Investor confidence net positive 48% Average prime yields 5.91%
Supply Demand Average secondary yields 8.05%
Buyer groups = private and institutional investors Overall vacancy 4.30% (June 2016)
6
Wellington Wellington Retail Vacancy Rate
June 2015 June 2016
12%
Demand returns 10%
Vacancy Rates
The rise in new entrants to Wellington and more retailers relocating 8%
around the CBD confirms the dramatic upturn in the market’s strength 6%
in less than 18 months. Our June 2016 survey showed Wellington’s
8.9% CBD vacancy rate up fractionally from 8.3% a year ago, however, 4%
this masks the underlying trend of the sector’s resurgence. Firstly, 2%
approximately 6,400 sqm of retail space was yet to be leased by David
0%
Jones (now up and running and boosting retail spend). There were,
Lambton Quay
Overall
CBD Core
Willis St
Manners St
Cuba St
Courtenay Pl
and are, a number of new tenants signing up for space like Wittner,
Platypus, Life Pharmacy, a confidential major fashion retailer as well
as other major internationals all scouring around for their new home.
We expect the vacancy rate to push to low 7% by mid-next year, and Source: Colliers International Research
this may prove to be conservative. The challenge for the sector will be
how to keep up with this heightened level of demand.
Supply increases
Three Westfield Malls Sold
The completion of refurbished space for David Jones will reintroduce Wellington
a sizeable amount of CBD supply, but it won’t unlock additional space
to lease. This is a rising trend, as landlords receive solid enquiry from
retailers when their premises come up for lease. New office buildings
will also provide new additions to the retail sector, while providing
new opportunities for retailers to move to better locations. The growth
of the Thorndon precinct for new government tenants as announced
in Wellington Accommodation Project 2 may see a shift in retailers
moving north over coming years. This will be especially noticeable for
convenience and food and beverage operators looking to take advan-
tage of the increased workforce. Shopping centre vacancy remains low
in the region (see map). Stride Property have recently announced
next steps in the redevelopment of Johnsonville Shopping Centre.
In December 2015 ASX-listed Scentre Group sold three Westfield
Rents and incentives in a tight range shopping centres for $549 million in two deals. NZX listed Stride
Property purchased Queensgate and Chartwell centres for $445 million,
CBD gross prime face rents and regional centre rents have increased and Ladstone Holdings purchased the Glenfield mall for $104 million.
over the past year. Bulk retail rents have remained steady. This is The sale of the three centres provided a blended a yield of 8.2%.
reflective of the retailing environment, but also the sector’s tight
rental range in any region of New Zealand. Current retail spending
from StatsNZ shows consumers are out spending again. Wellington
retail sales were up 1.4% in the past year. However, the increase in
volumes at a higher rate indicates margins remain thin which may Platypus Shoes
limit landlords from increasing rents rapidly in this positive 93-97 Manners Street, Wellington
leasing environment.
Yields and capital values on the rise
Investors in Wellington retail property were at a net positive 30% in
our June 2016 confidence survey. This is the highest level of confidence
since the Colliers survey began in 2008. The confidence is reflected in
investment yields firming in the CBD and regional centres, down by
15 basis points and 12 basis points respectively. Bulk retail yields have
remained steady after firming by 20 basis points last year. There is a
lack of prime stock to invest in, which will be exacerbated by current
market conditions. Investment activity will rise as purchasers take
advantage of a lower interest rate environment. However, the focus Platypus Shoes Limited has leased 250 sqm of retail space from a
will remain on capital appreciation rather than rent rises. private investor at 93-97 Manners Street in Wellington CBD.
7WELLINGTON RAILWAY STATION
North City
Lambton Quay
u ay
0.0%
Q
3.5% $2,098 6.50%
ton
Lamb
Willis Street
7.8% $1,180 7.00% 2
Queensgate Shopping Centre
t
lis S
Wil
0.9%
Johnsonville Shopping Centre
1.8%
1
Cuba Street
2
t
sS
3.6%
Willi
Wellington CBD
t
aS
KEY
Cub
Manners Street
Ma
Dix nn
e
12.2% Overall
on rs
St S Vacancy Rates (%)
ED
t
POS
PRO
Average Prime Retail
Gross Rents ($/m2)
Courtenay Place Cou
rten Average Prime
21.6% $875 7.00% ay P
l Market Yields (%)
t
aS
Trend: June 15 - June 16
Cub
Actual June 16 figure 0%/$0
No Change
t
aS
Cub
PROPOSED
Source: Colliers International Research
Prime strip retail based on 100 - 200 sqm shop area
Wellington Retail Market Review
2016 compared to 2015
Enquiry = Average prime CBD gross rents $1,257/sqm
Consumer confidence = Average secondary CBD gross rents $732/sqm
Investor confidence net positive 30% Average prime yields 6.85%
Supply Demand Average secondary yields 7.38%
Buyer groups = private and institutional investors Overall vacancy 8.90% (June 2016)
8Christchurch BNZ Centre
Christchurch
Spending growth rates balance out
Canterbury is the second largest catchment for retail spending
in New Zealand behind Auckland, representing 14% of the nation’s
retail spend. At first glance the slowdown in annual retail spending
to 0.4% in the 12 months to June 2016 signals a market losing
momentum. However, retail spending has increased by 10% since
mid-2014, outpacing New Zealand’s overall growth of 9% over the
same period. The latest results do signal an inevitable slowdown
in spending after such a high period of activity. Growth is likely
to re-emerge in the second half of the year.
Stage Two of the BNZ Centre in Cashel Street is due for completion in
December 2016. The $140 million precinct developed by Lichfield Holdings
Step by step, retailers sign up has approximately 5,000 sqm of ground floor retail space. Confirmed
tenancies include 119 sqm leased by Michael Hill and 157 sqm by Spark.
Suburban retailers are sticking to ‘retailing 101’ by setting up shop
in locations with the strongest catchment. Areas in the north and
the west are receiving the lion’s share of this spending and are
benefiting from the high number of residential projects underway. The Landing
In the CBD, tipping point has been reached as enquiry is translating Wigram Skies, Christchurch
into leasing deals. The commitment to the CBD by major office
occupiers has hastened retailers to commit to their own premises.
Recent examples include Superette, Partridge Jewellers, Macpac,
Country Road and more. Those who haven’t committed are either
close, in discussion or are engaged with the market to source the
most appropriate spot for their business. National fashion retailers
are slowly rising in number, but smaller local boutique retailers
may be struggling to commit given the significant jump in rents
from yesteryears. Announcements from international retailers like
TopShop continue to rally the sector, with more announcements
expected soon.
Rents have now been set The retail complex at The Landing in Wigram Skies is now 70% leased.
A modern New World Supermarket anchored the first stage of the
The range for CBD retail rents is now starting to firm as higher development which opened mid-2015. Other tenants include Joe’s Garage,
numbers of leasing deals take place. Typical net prime rents in the Hikari Sushi Bar and a Unichem Pharmacy. The $40 million dollar project
developed by Ngai Tahu Property Limited includes approximately 6000 sqm
CBD are between $600/sqm and $800/sqm, while suburban rents are
of retail space.
typically below $600/sqm. Many of the larger format retail rents in
Christchurch range between $160/sqm and $375/sqm depending on
tenant brand, size and location. Christchurch large format retail
space below 1,000 sqm commands a slight premium compared Unit 3/ 950 Ferry Road
with other locations around New Zealand, with the exception of Ferrymead, Christchurch
Auckland. Under the current retailing environment, there is limited
market rental growth expected, with the prevalence of fixed or CPI
adjusted rents. Turnover rents remain predominantly the domain
of larger national tenants.
Investors regain confidence
In the latest June 2016 Colliers International Investor Confidence
survey, Christchurch’s retail sector recorded a net positive 12%
(optimists minus pessimists). This is a positive turnaround for the
sector from the recent downward trend, which saw only a net posi-
tive 6% in March 2016. Momentum in development and leasing
activity in tandem with further yield appreciation are the main Clarkmead Properties Limited sold Unit 3/950 Ferry Road for $1,732,000
drivers, a feature of the market set to continue. to a private investor reflecting a yield of 6.1%. The property consists of 394 sqm
and includes ground floor retail, first floor office and off-street car parking.
9REGIONAL UPDATES
Hamilton
High profile, major asset sales in Hamilton over the past year highlight Currently the wider Waikato region accounts for 9.4% of the nation’s
the retail sector’s recent rise in activity. The Base (half share), Westfield total seasonally adjusted retail sales values each year. Although this
Chartwell and Centre Place South sold for an aggregate value of over remains broadly comparable to last year’s result, retail spending levels
$400 million. The national retail sector typically achieves a total are growing at about 3% pa. This is at a higher rate than rental growth
annual sales value of $1.1 billion, highlighting the significant size of which remained typically steady, albeit a rise at the top-end range of
prime rents was recorded, now at $600/sqm. Solid catchment
the three major sales. There have also been a number of smaller retail
demographics, rising rents and competitive purchasers have led to
premises sold for under $2m, often reaching 6% yields. The purchasing
further capital appreciation and firming yields. Average prime retail
activity by listed property vehicles, syndicates and private investors
properties in Hamilton will now sell with a yield between 6% and 7%,
reflects the competition for assets in a sector starved of options.
down from 7% to 8% a year ago. Secondary assets are also receiving
Investors are bullish for retail, eyeing up Hamilton’s growth in stronger enquiry rates. Although yields are forecast to firm further,
population as well as the recent surge in residential dwelling prices the rate of change experienced over the past 12 months is unlikely
and the positive impact expected on consumer spend. to be repeated over the next 12 months.
Centre Place South
Hamilton CBD, Hamilton
NZX-listed company Kiwi Property Group Limited has confirmed
the sale of Centre Place South to Silverfin Capital Limited for $46.8
million. Equity of $27.6 million was raised from the sale of $50,000
parcels to wholesale investors through syndication. Silverfin projected
a 9% pre-tax return for the first full 12 month period, paid monthly.
The 10,933 sqm shopping centre comprises of 27 tenancies, along with
a new Farmers store. It also underwent a $36 million refurbishment
in 2013.
Palmerston North Nelson
Overall demand conditions in the retail sector have been positive in Retailers in Nelson remain conscious of the rising, but thin margins
the past year, helping to lift the sector’s performance from previous in the sector, which is exacerbated by low inflation and a relatively
years. Vacancy rates across the city are low, following on from stable spending environment. Population gains, as well as tourism
elevated enquiry levels that have translated into real activity. growth, remain key to the sector’s rise in profitability. A positive
In particular, the large format retail sector in Palmerston North outcome for tenants is that rents have remained relatively steady, with
received a boost with Bed, Bath & Beyond, Repco and Animates all prime rents ranging between $450/sqm and $700/sqm, and secondary
leasing space in 2016. Other opportunities in the strip retail sector rents ranging between $250/sqm and $400/sqm. Forecasts of future
are occurring as tenant demand remains steady and positive, but rent rises remain below 3% pa for the majority of retailers. New leases
only for the right opportunities. Retail sales volumes were up 6.5% in Trafalgar Street, Achilles Avenue and High Street indicate tenant
in August 2016 compared to August 2015, with total retail spending demand is broad, catering to a varied and diverse consumer base.
values up a further 2%, according to Paymark. This will keep retailers Investors remain challenged to find appropriate levels of stock to
content, especially as rents have remained broadly stable over the purchase, with anything that does become available receiving high
last 12 months. The higher levels of activity indicate the retail sector enquiry. This is pushing yields to a tight range at the top end of the
in Palmerston North is moving into the next phase of stronger quality spectrum. Prime yields currently range between 6.00% and
underlying demand and more positive investor confidence levels. 7.50%, with positive underlying sentiment likely to see these rates
This will assist with firming prime yields which currently range firm further over the next 12 months.
between 7.00% and 8.00%.
10Queenstown Rotorua
The level of development activity in Queenstown’s retail sector Positive economic conditions provide the underlying support for
continues to push new boundaries. After years of modest activity, Rotorua’s buoyant retail sector for 2016. Economic data analysed
there has been a burst of new retail space – predominantly in by Infometrics for the Rotorua District Council in the June 2016
Frankton Flats at Remarkables Park, Five Mile and Queenstown quarter shows: retail trade, tourism, guest nights, net migration,
Central (which is due for completion late 2017). New leases by Noel car registrations, house prices, consents and other important
Leeming, The Warehouse, Harvey Norman and now Kmart indicate
metrics were all positive over the past year, and often outperform-
just how much change the sector is experiencing. Not to be left out,
ing New Zealand overall. While the local resident population is
the traditional heart of the retail sector in the CBD continues to exceed
up and spending levels are positive, the major boost has been from
expectations with little opportunity to secure space. Enabling the
domestic and international visitors. According to MBIE’s Monthly
increase in floor space is the significant projections of resident
population growth as well as the tourist population. While there Regional Tourism Estimates spending was up by 4.8% to $711
is almost 30,000 sqm of retail space under construction or in the million over the past year. The higher spending levels are helping
pipeline, there are some indications that tenant churn will likely with retail leasing activity, which is helping to reduce vacancy
see some space left behind that will be harder to lease. Despite all rates from their peak in 2014. Accommodation and the food and
of this new supply, rents are continuing to grow, especially for prime beverage retail sectors continue to benefit from the strong tourism
end space in the CBD. However, given the level of new space set sector. However, the increase in house prices is seeing greater
to enter the market over the next four years in Frankton, we would spending at large format retailers for household goods and DIY
expect that rents may remain steady there. Investment yields are items. Retail rents in Rotorua typically range between $180 and
strong in Queenstown, reflecting the level of growth expected as well $350/sqm, with rents at the lakefront end of Tutanekai St reaching
as the competition from investors for prime stock in an increasingly approximately $280/sqm. Recent sales activity shows average
growing tourist destination hub. prime yields typically ranging between 6.75% and 7.50%.
Five Mile
Frankton, Queenstown
Hawke's Bay
Another strong year of retail spending in the Hawke’s Bay has kept
retailers confident in their future prospects. It has also kept yields
firm in a competitive market. The 9.4% annual increase in retail
spending volumes and 5.6% increase in retail spending values,
according to Paymark, highlight the sector still relies on sales.
Retail sales activity is buoyant, but not all retailers will be benefitting
in the high volume, low margin operating environment. This is
consistent with market leasing activity, with variation in performance
across sectors as well as locations. A strong development pipeline is
Stage two of Five Mile Shopping Centre is currently under construction alleviating some pressure on the demand for retail space with recent
and is due to open early 2017. The 8,000 sqm second stage consists of lease deals including 129 Hastings Street at $423.50/sqm. A stand out
three large format retail buildings to be leased by The Warehouse, Noel purchase in the Hawke’s Bay over the past year was the SBS building
Leeming and Look Sharp, along with smaller specialty stores. The $130
million development of 23,000 sqm also includes Five Mile stage one
in Hastings, achieving a yield of 5.68%.
which opened in October last year.
11Tauranga/ Dunedin
Mt Maunganui The 7.6% vacancy rate in Dunedin is the lowest recorded since 2012.
Leasing activity has been strong in the past 12 months which has
been driven by a number of tenant moves throughout the CBD.
The latest figures from Paymark shows another buoyant period
There were 27 leases counterbalanced by 33 vacated shops, signalling
of spending activity in the area. The annual percentage change
the level of churn in the market. The overall results highlight how the
between August 2015 and 2016 shows retail spending in the Bay
retail sector is changing, with retailers jostling for position as well
of Plenty up 10.1% by value and 8.9% by volume outpacing all other
as securing space in restrengthened premises. The ‘Golden Block’
regions across New Zealand. The results also highlight, however,
continues to attract enquiry from retailers around the country,
that margins remain thin for retailers in the area, relying on volume but opportunities remain scarce. Pedestrian flows continue to be
gains to drive profitability. This has been translated into the stable strong in the area, dominated by the three main malls. More large
retail rental environment with prime rents over the past year format retail premises could be an option for Dunedin which
ranging from $300/sqm to $500/sqm in Tauranga and $375/sqm to continues to attract national retailers. The proposed second genera-
$600/sqm in Mt Maunganui. Investment intentions remain strong. tion District Plan will include new commercial and mixed use
Current yields for prime retail premises range from 6.50% to 7.50% zones in order to accommodate for projected demand for retail
in Tauranga and 4.00% to 5.50% in Mount Maunganui, which has space. Investment activity is strong and competition from locals
firmed by 100 basis points over the past year. Given the growth and investors outside the area has pushed yields even further over
outlook in population, house price rises and business activity the past 12 months. We expect more firming to continue as the
we forecast retail conditions to continue improving. search for yield remains.
94 Elizabeth Street
Tauranga
Dunedin Retail Vacancy Rate
9%
8.1% 8.1% 8.2%
8.0%
8% 7.6%
7%
Vacancy Rate
6%
5.1%
5%
4%
3%
2%
1%
0%
J u n -1 1
Jun-13
Jun-14
Jun-15
Jun-16
Jun-12
NZ Uniforms has leased the former Dick Smith building at 94 Elizabeth
Street for $250/sqm. The 400 sqm tenancy is situated on the entrance to
Tauranga CBD and is surrounded by national retail brands such as No.1
Source: Colliers International Research
Shoe Warehouse, Kathmandu and Plastic Box.
12Outlook
The sector’s momentum has been created from a prolonged period The wise and weary of the industry – many who have seen these
of positive economic conditions. Commentators forecast this to conditions before – will be the beneficiaries in the game that involves
continue – posting near, or above, long-term indicators. quick and calculated moves to stay ahead of the competition.
Keeping abreast of the latest trends in retail is not everyone’s path
Factors keeping consumers and retailers much more content on
to success in this upswing stage of the cycle, especially those looking
their future trading expectations than in the past year will be:
for passive property returns.
>>national house price rises,
While the stakes have been raised by this newly transformed retail
>>strong population gains, industry, some traditional market characteristics will remain.
>>a booming tourism market, and Retailers should expect to have higher rents next year and investors
should expect to pay more in this competitive purchasing cycle
>>a dairy sector that is climbing out of its recent lows.
based on low interest rates and a growing depth in the number of
The key for retailer and landlord prosperity will be to not get caught ‘cashed-up’ and ‘yield hungry’ purchasers.
up in the hype and move too far ahead of the day-to-day activities. While retail is not for the faint hearted, economic conditions
Perhaps most importantly, remaining grounded in the knowledge currently supporting both retailers and investors suggest there
of the cyclical nature of economic and property markets. is little to steer the sector from its current growth path.
NorthWest Shopping Centre
Massey, Auckland
Stride Property Limited’s NorthWest Shopping Centre opened in
October last year comprising nearly 100 retail shops. NorthWest
Two is located opposite the existing shopping centre. The second
stage will provide around 7,700 sqm of additional retail, dining and
office space and will border the Westgate Town Square. Zone 7 of
Northwest has now been completed and comprises 25,000 sqm.
Tenants include Harvey Norman, Rebel Sport, and Briscoes.
13A Selection of New Zealand Retail Leasing Activity
Project Name/Address Precinct NLA (m²) Date Tenant
AUCKLAND
Atrium on Elliot, L2 & 3, Elliot Street Auckland CBD 2,016 Q4 2015 The Warehouse
85 Cavendish Drive Manukau 1,239 Q1 2016 Mt Smart Marine Ltd
Level 1, 191 Queen Street Auckland CBD 662 Q3 2016 Footlocker
Sylvia Park, 286 Mount Wellington Highway Mount Wellington 2,528 Q4 2016 Zara
Sylvia Park, 286 Mount Wellington Highway Mount Wellington 2,300 Q4 2016 H&M
Commercial Bay Retail Precinct, Customs Street Auckland CBD TBC ~Q3 2018 H&M
DUNEDIN
210 George Street CBD 157 Q3 2015 Flight Centre
398 Cumberland Street CBD 500 Q3 2015 Anytime Fitness
629 Princes Street CBD 1,260 Q3 2015 Animates
239 George Street CBD 150 Q2 2016 Merric
WELLINGTON
256 Lambton Quay CBD TBC TBC Topshop
100 Taranaki Street CBD 726 Q2 2016 The White Star
Retail 9, Airport Retail Park Lyall Bay 398 Q2 2016 Brewary Limited
55 Willis Street CBD 109 Q2 2016 Timberland
49 Willis Street CBD 122 Q2 2016 David Lawrence
93-97 Manners Street CBD 250 Q3 2016 Platypus Shoes
264 Lambton Quay CBD 145 Q3 2016 Cotton On
CHRISTCHURCH
ANZ Centre Christchurch CBD TBC Q4 2016 Glassons
ANZ Centre Christchurch CBD TBC Q4 2016 Hallensteins
ANZ Centre Christchurch CBD TBC Q4 2016 Mecca Maxima
BNZ Centre Christchurch CBD 482 Q4 2016 BNZ
BNZ Centre Christchurch CBD 310 Q4 2016 Pharmacy
BNZ Centre Christchurch CBD 119 Q4 2016 Michael Hill
BNZ Centre Christchurch CBD 63 Q4 2016 Pandora
BNZ Centre Christchurch CBD 157 Q4 2016 Spark
BNZ Centre Christchurch CBD 100 Q4 2016 Repotoire
BNZ Centre Christchurch CBD 146 Q4 2016 Simply NZ
PALMERSTON NORTH
27 Princess Street Palmerston North 466 Q1 2016 Animates
126-150 Rangitikei Street Palmerston North 2,431 Q1 2016 Farmers
126-150 Rangitikei Street Palmerston North 526 Q2 2016 Repco
210-248 Rangitikei Street Palmerston North 723 Q3 2016 Bed, Bath & Beyond
NELSON
70 Achilles Avenue Nelson CBD 152 Q1 2016 CBD Craft Brewery Depot
126 Trafalgar Street Nelson 193 Q2 2016 United Video
296 High Street Motueka 220 Q3 2016 High end Charity Shop
TAURANGA/MT MAUNGANUI
301 Cameron Road Tauranga 248 Q1 2016 Harmony Home Furniture
T2, 511 Cameron Road Tauranga 200 Q2 2016 Smartvets Limited
Unit B3, Lot 4, 30 Gravatt Road Papamoa 95 Q2 2016 James Street Burgers
199 Maunganui Road Mount Maunganui 76 Q3 2016 Alice & Co. Limited
T2, 245 SH2, Bethlehem Bethlehem 126 Q4 2016 The Pizza Library
ROTORUA
1281 Tutanekai Street Rotorua 200 Q3 2016 Max
QUEENSTOWN
Five Mile Stage 1 Frankton ~530 Q4 2015 Bed Bath and Beyond & Caroline Eve
Remarkables Park, Hawthorne Drive Frankton 1,780 Q4 2016 Harvey Norman & Bakery
Five Mile Stage 2 Frankton 7,650 Q1 2017 Warehouse, Noel Leeming, LookSharp, Lighting Plus
Source: Colliers International Research
14A Selection of New Zealand Retail Sales Activity
Estimated Sale Sale Price
Project Name/Address Precinct Yield Vendor Purchaser
NLA (m2) Date ($)
NATIONWIDE
Countdown Portfolio – 19 Countdown Stride Property (Formerly
Nationwide Various Q3 2015 6.50% 287,000,000 Antipodean Supermarkets
Supermarkets DNZ Property Fund Ltd)
Three Westfield Shopping Scentre Group
Centres Sold – Queensgate, Nationwide Various Q4 2015 8.20% 549,000,000 Scentre Group (New Zealand) Ltd (New Zealand) Limited
Chartwell and Glenfield & Ladstone Holdings
AUCKLAND
Zone 7, Westgate Town Centre Massey ~25,000 Q3 2015 7.00% $82,500,000 NZ Retail Property Group Kiwi Property Group
Rialto Centre, 153 Broadway Newmarket TBC Q1 2016 5.20% $3,050,000 Private Vender Private Investor
Countdown, 90 Great South Rd Papakura ~2,980 Q1 2016 7.50% $9,750,000 Papakura Super Trustees Omara Property Group
Average
8 Units, 252 Oteha Valley Rd Albany 1,024 Q2 2016 $9,057,000 AEG Oteha Ltd Various
5.01%
Wendy’s, 702 Mt Albert Rd Mt Albert 289 Q2 2016 4.32% $3,755,000 Private Vendor Private Purchaser
The Hobsonville Centre,
Hobsonville 6,988* Q3 2016 Undisclosed $36,295,000 Hobsonville Ltd Trust Investments
124 Hobsonville Rd
Three Kings Shopping Centre & Plaza Three Kings 10,194 Q3 2016** 5.88% $37,000,000 Antipodean Properties Private
CHRISTCHURCH
3/950 Ferry Rd Ferrymead 394 Q3 2016 6.10% $1,732,000 Clarkmead Properties Limited Private Investor
HAMILTON
Te Awa, The Base, Te Rapa Rd Te Rapa 87,000 Q3 2015 Confidential $192,500,000 Tainui Group Holdings Kiwi Property
Hamilton Central Shopping Centre,
Hamilton CBD 18,360 Q1 2016 10.35% $13,400,000 Stride Property Limited Stark Property Limited
Corner of Bryce, Tristam & Ward St
Centre Place South, 501 Victoria St Hamilton CBD 10,933 Q3 2016 7.96% $46,800,000 Kiwi Property Group Limited Undisclosed
QUEENSTOWN
ARM Ninety Two Ltd
Five Mile Queenstown Stage 1 Buildings 2 & 3 9,531 Q2 2016 6.71% $40,894,000 Queenstown Gateway (5M) Ltd
(Mitchell Mackersy)
Five Mile Queenstown Stage 1 Building 4 2,480 Q2 2016 6.75% $11,163,878 Queenstown Gateway (5M) Ltd Oakwood Properties Ltd
NELSON
240 Trafalgar Street Nelson 540 Q3 2016 7.50% $1,600,000 Private Trust Private Trust
PALMERSTON NORTH
Countdown, 673-679 Main Street Palmerston North 1,960 Q2 2015 7.80% $7,350,000 P P Projects Ltd Mainland Capital Ltd
Geoffrey John Harold
Rangitikei Flooring, 691-693 Main St Palmerston North 665 Q3 2015 8.30% $1,005,000 Waller Family Trust
Blackmore
Smith City, 537 Main St Palmerston North 2,280 Q3 2015 8.47% $4,950,000 Humphries Developments Ltd Monsoon NZ Ltd
Palmerston Indoor Sports Arena,
Palmerston North 1,410 Q2 2016 8.22% $1,460,000 Ihaka Trust Neville Hillary Smith
180 Church St
AvantiPlus, 407 Ferguson St Palmerston North 925 Q2 2016 8.00% $1,125,000 DRP & TJ Tylee Investment Trust Bowcorp Holdings Ltd
KFC, 201-213 Rangitikei St Palmerston North 235 Q2 2016 6.00% $2,065,000 Murray Prankerd Nominees Ltd Mendip Trust
DUNEDIN
The Warehouse, 64 Hillside Rd South Dunedin 23,683 Q3 2015 7.25% $14,150,000 Eldamos Investments Limited Mm Group 1 Limited
301 George St Dunedin CBD 193 Q4 2015 7.00% $1,900,000 Private Investor Private Investor
271 Thames St Oamaru 255 Q2 2016 6.10% $1,890,000 Resturant Brands Proeprties Ltd Private Investor
5-9 Irwell St Gore 3,760 Q3 2016 7.80% $5,658,000 Private Investor Private Investor
TAURANGA/MT MAUNGANUI
14 Marsh St Tauranga 524 Q3 2016 5.10% $1,880,000 MTH Investments Limited Selinden Park LTD
Unit 3, 22 Gravatt Rd Papamoa 500 Q3 2016 Sold Vacant $1,450,000 Kaurivale Holdings Limited Phillip Borrie
Source: Colliers International Research *Site Area **Unconditional date (due to settle mid-November)
15A Selection of New Zealand Retail Development Updates
Estimated Estimated
Project Name/Address Precinct Status Owner/Developer
NLA (m2) Completion
NATIONWIDE
Progressive Enterprises – $500 million
Nationwide Various Proposed ~2019 Progressive Enterprises
expansion
Foodstuffs – Seven new supermarkets Nationwide Various Proposed Various Foodstuffs
AUCKLAND
NorthWest Shopping Centre Stage 2 Westgate 7,700 Under Construction Q3 2016 Stride Property Limited
Sylvia Park, H&M and Zara Mount Wellington ~4,800 Under Construction Q4 2016 Kiwi Property
Commercial Bay Retail Centre CBD Core 18,000 Under Construction Q3 2018 Precinct Properties Holdings Limited
Ormiston Town Centre (Block F & J) Flat Bush 30,000 Under Construction Q3/4 2018 Todd Property Ormiston Town Centre Ltd
Orchard Business Park (Retail Hub) Albany 2,300 Under Construction TBC Orchard Park Retail Hub Limited
Westgate Zone 9, 10, 11 & 12 Auckland 67,000 Under Construction TBC NZ Retail Property Group (NZRPG)
Sylvia Park Mount Wellington ~20,000 Under Construction 2022 Kiwi Property
HAMILTON
Lakewood Centre Cambridge 5,200 Construction commencing Q4 2016 Q4 2017 JV – Foster Develop Ltd
WELLINGTON
Kapiti Landing Business Park TBC 42,000 Under Construction Q2 2016 Todd Property
Lombard Lane Lombard Lane 1,500 Under Construction Q4 2016 Cook Strait Properties
Cuba Mall Wellington CBD 745 Under Construction Q1 2017 TBC
Cinema Complex Queen Street TBC Under Construction Q3 2017 Venture Consulting Ltd
CHRISTCHURCH
Pegasus Pegasus 1,500 Under Construction Q4 2016 Todd Property Limited
BNZ Centre (Stage 2) Christchurch CBD 18,600 Under Construction Q4 2016 Lichfield Holdings Limited
The Hub Hornby Hornby 22,000 Under Construction Q4 2016 Shopping Centre Inv Ltd
Prestons Shopping Centre (Stage 1) Marshland TBC Proposed Q1 2017 Ngai Tahu Property Group Limited
ANZ Centre Christchurch CBD 1,700 Under Construction Q1 2017 CHC Properties
The Crossing Christchurch CBD 14,000 Under Construction Q1 2017 Crossing CBD/Karen Walker/Barkers
The Terrace (Stage 1) Christchurch CBD 2,562 Under Construction Q1 2017 Hereford Holdings
West Melton Shopping Complex West Melton 2,000 Under Construction Q1 2017 James Lloyd Developments Limited
New Retail Hub, 87 Riccarton Road Riccarton TBC Under Construction Q2 2017 GP Mainland Limited
The Terrace (Stage 2) Christchurch CBD 911 Under Construction Q4 2017 Hereford Holdings
Styx Centre Belfast 20,000 Proposed Q3 2018 Calco Developments
Ravenswood Ravenswood 8,000 Proposed TBC Infinity Investment Group
QUEENSTOWN
Marine Parade (Eichardts – Extension) CBD 200 Under Construction Q4 2016 Louis Vuitton
Remarkables Park "Entertainment
Frankton 3,000 Under Construction Q4 2016 Private Developer
Precinct" – Stage 2
Pak n Save, Shotover Park Frankton ~6,000 Under Construction Q4 2016 Foodstuffs South Island Limited
81 Beach Street (Ex – ANZ) Queenstown Central 450 Under Construction Q4 2016 Redson Corp Holdings Limited
Marine Parade (Eichardts – extension) Queenstown Central 600 Under Construction Q4 2016 Skyline Investments Limited
Five Mile (Stage 2) Frankton 7,650 Under Construction Q1 2017 Private Developer
Remarkables Park "Market Street"
Frankton 800 Under Construction Q1 2017 Remarkables Park Limited
Stage 2 – Remarkables House
23-27 Shotover Street, ex Worldbar site Queenstown Central 500 Under Construction Q2 2017 Boyd Corp Limited
Queenstown Central (Stage 1) Frankton 11,300 Proposed Q4 2017 Private Developer
Remarkables Park "Market Street"
Frankton 520 Planning Q2 2018 Safari Group
Stage 3 – Wyndham Hotel
TAURANGA/MT MAUNGANUI
Tauranga Crossing Stage 1
Tauriko 17,800 Under Construction Q3 2016 Tauranga Crossing Limited
(Bulk Retail Centre), 1/5 Taurika Drive
Tauranga Crossing Stage 2
Tauriko 37,000 Proposed Q2 2018 Tauranga Crossing Limited
(Cinema Complex), 1/5 Taurika Drive
PALMERSTON NORTH
Brian Green Properties (Palmerston
126-150 Rangitikei Street Palmerston North 2,700 Construction Q4 2016
North) Ltd
NAPIER/HASTINGS
Village Exchange Havelock North 942 Under Construction Q4 2016 Lowmac Properties Limited
MidCity Plaza Napier TBC Under Construction Q1 2017 TBC
The Park Megacentre Hastings TBC Under Construction Q4 2017 Caboo Properties Limited
Source: Colliers International Research
16Commercial Bay
Auckland CBD, Auckland
Demolition is now underway at Commercial Bay, the
$681 million development at the former Downtown
Shopping Centre site. Owned and developed by NZX
Listed Precinct Properties, the complex will include a
three level retail precinct and is expected to open by
October 2018. The 18,000 sqm of retail will consist of
100 shops including a flagship store for international
retailer H&M.
For more information contact: Colliers International Research
and Consulting offers a range
Alan McMahon Aimee Simpson of commercial and residential
National Director | Research Research Co-ordinator property solutions:
& Consulting
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Senior Research Consultant
• Catchment Analysis
Elena Christodoulou Colliers International
• Lease Audit & Benchmarking
Research Analyst Level 27, SAP Tower
151 Queen St, • Site Options Analysis
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Research Analyst +64 9 358 1888 • Financial Analysis
• Business Cases
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