Latest figures show more retail businesses are being attracted to Rotorua’s central city, with vacancy rates down to the lowest level for six years.
The TelferYoung 2016 Rotorua Central Business District vacancy survey (undertaken in December 2016) shows both a decrease in in the number of vacant retails shops and a decrease in the amount of vacant retail space.
In December 2016, there were 65 vacant shops, compared to 82 in 2015.
TelferYoung director, Grant Utteridge says the decrease reflects an increased level of business confidence in Rotorua, a growing Rotorua economy and a strong tourism sector.
“The decrease in Rotorua retail vacancies is particularly significant, as it is in contrast to difficult retail conditions nationally, where increased internet trading, changing spending patterns and economic conditions have impacted directly on retailers,” Mr Utteridge says.
He says it should be noted that 15 of the 65 vacant shops are in the Hinemoa Arcade building between Hinemoa and Pukuatua Streets, where the majority of sites have been vacant since its re-development in 2011.
The lowest vacancy rates are in Rotorua Central Mall, Eat Street at the northern end of Tutanekai Street, and on Fenton Street surrounding the i-site.
Conversely, in the office sector, the overall vacancy rate increased to 18.6% from 15.3% in 2015. However, Mr Utteridge says this is still less than 2014 figures of 18.8%.
He says key vacancies that have contributed to the increase have been the relocation of tenants from the ex-Tompkins Wake building on Fenton Street and the addition of new, and as yet partly unoccupied space, on Whakaue Street.
“This figure is possibly not a true reflection of the situation over the past two years. We expect the Whakaue Street building will be largely occupied in the near future as tenants complete their fit-outs.”
He says a key emerging trend is the development of new purpose-built space for tenants wanting to relocate to prime sites.
“This year we have seen the development of Lakeside in Whakaue Street and the conversion of the old Freedom Furniture building into two offices.”
In 2016 the number of vacant office suites increased to 61, four more than 2015.
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.
Click below to download a copy of the CBD Vacancy Survey results