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New office complex already half leased
New office complex already half leased - 13 months ahead of completion
The regeneration of Tauranga’s central business district continues to gather momentum – with plans being released for a new five storey commercial and retail complex on the corner of Cameron Road and Third Avenue.
The new $40 million building will have almost 7,800 net square metres of floor space and retail outlets, with the capacity to house some 600 office workers. As well as an outdoor space at ground level, there is an additional 2453 square metes of basement car parking which will accommodate 105 vehicles.
Demolition of the old commercial buildings previously on the site was completed over winter and construction of the new building began in October – with a scheduled completion date in the fourth quarter of 2016 and tenancy occupation from January 2017.
The development is being jointly undertaken by existing Tauranga-based landholder Manor Group TGA, in conjunction with Auckland-based developer/investor Watts Group Investments. Sister company Watts and Hughes Construction is building the premises.
The development partnership was brokered by Russell Adams of Bayleys Auckland and Lloyd Davidson of Bayleys Tauranga. The duo are now in discussion with potential purchasers of the building.
One and a half floors – some 3014 square metres in total – have already been leased to a Government department under a confidentiality agreement. Manor Group was a previous tenant in the old building on the site, and will be moving back to the new premises on completion.
Leasing of the remaining space is being undertaken by Bayleys Tauranga. Leasing specialist Lloyd Davidson said naming rights for the building were still available to tenants looking to rent either or both of the upper two floors – containing 1795 net square metres on the third floor and 1117 square metres on the top floor.
Mr Davidson said per square metre rates for the floor space would vary depending on tenancy size and terms of the lease.
“However, being a new build, state-of-the-art premises able to be bespoke configured to a range of new tenants, it will command a premium for Tauranga – as you would expect,” Mr Davidson said.
Bayleys Tauranga is also leasing the five retail spaces at street level – ranging in size from 79 square metres to 244 square metres. Mr Davidson said that with some 600 new office workers immediately above, the ground floor tenancies would suit food and beverage operators or niche fast moving consumer goods retailers such as a florist, or travel agency.
“Facing directly onto Tauranga’s busiest arterial road is a definite benefit for potential retail tenants – particularly as Cameron Road links the CBD to outlying suburbs.
Other major corporate entities in
the nearby vicinity include ANZ, accountancy firms KPMG and
Staples Rodway, solicitors Cooney Lees and Sharp Tudhope,
Aurecon Engineering, and the headquarters of Bay of Plenty
Regional Council. Retailers within a 500 metre walking
distance include a chemist, multiple cafes, home appliance
stores Noel Leeming and Farmers, and two gymnasiums.
A Tauranga CBD commercial office report released earlier this year highlighted the growing divergence between the vacancy rates in ‘prime’ and ‘secondary’ quality buildings occurring in the heart of the city.
“There are very tight conditions prevailing for better grades of space - compared to rising vacancies amongst secondary properties,” said the report, undertaken independently by Bayleys Research.
“This is prompting an increase in development activity to satisfy demand for better quality premises.”
“The building has been designed with floor-to-ceiling windows facing to the north, west and south to maximise the available natural light.
Mr Davidson said additional car parking for staff working in the building would be available at the council-run facility in First Avenue some 200 metres away.
ENDS
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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