'ROTORUA INDUSTRY IN CONFIDENT MOOD'
Business confidence in Rotorua’s industrial sector appears to be on the rise, with the lowest level of vacant industrial buildings since 2004 according to figures released by TelferYoung Rotorua.
The annual survey undertaken by TelferYoung Rotorua, shows the overall level of industrial vacancies has dropped in the last 12 months from 7.2% to 6.0%. It continues the general trend of declining vacancies since 2011, except for a spike in 2014 when the Tachikawa site fell vacant.
TelferYoung Rotorua director, Kendall Russ says the level of industrial vacancies is a good indicator of the level of business confidence.
“We’re seeing confidence both in the industrial property market and the industrial sector. In the last 6-12 months we’ve had clients that have either relocated to bigger premises, or expanded their own buildings,” Mr Russ says.
Mr Russ says both west-side Rotorua and main road locations have shown improvement over the last 12 months however, he warns that there are limited options for new business developments or for current businesses to expand.
“We are hearing of a number of businesses seeking good quality, high stud, clear span workshop space capable of holding gantry cranes. But there is just none of this space available to lease or purchase.
“In particular, there is a distinct shortage of vacant sites available near the CBD. There is space out by Rotorua Airport, but in general, companies want to be closer to the city centre,” he says.
“This could result in potential lost business development opportunities.”
TelferYoung Rotorua has been conducting the industrial vacancy survey since 1992. The vacancy rate has only been lower in 1995,1996 and 2004.
TelferYoung Rotorua is a multi-disciplined valuation company located in Rotorua. The company provides a full spectrum of valuation and property advice services, including industrial, residential, commercial, rural, lifestyle and more. TelferYoung Rotorua services the wider Central North Island region, from Whakatane to Turangi and from Tokoroa to Kawerau, including Rotorua.
Contact: Kendall Russ 07 348 1059 or 027 487 7107
Photo: Kendall Russ, TelferYoung Rotorua director