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Train Station Kiosk Leasing on Track for Business Operators

Train station kiosk leasing on track for new business operators

Retail kiosk opportunities located at three stations on Auckland’s busy commuter rail network have been placed on the market for lease, seeking high quality ‘food and beverage’ operators.

The three small-format sites – each approximately 10 square metres in size - are at the Newmarket, Panmure and New Lynn train stations, and are located in the busy station concourse zones.

Landlord Auckland Transport is seeking expressions of interest from potential food and beverage operators, submitting full business proposals for each of the three-year lease opportunities.

The leasing campaign is being managed by Bayleys Real Estate sales people Lloyd Budd and Nelson Patchett, with request for proposal lodgements from prospective tenants closing on August 24, and tenancies at all locations expected to commence from September this year.

Mr Budd said the sites could be tendered for individually, or as a combined portfolio. Any tenant or tenants would be responsible for fit-out costs – including plumbing and telecommunications. Electrical connections would be provided.

“As landlord, Auckland Transport is looking for an experienced high-quality operator delivering barista coffee alongside modern ’grab and go’ cabinet food ranging from baked goods through to salads,” Mr Budd said.

“Any food and beverage offering must be relevant to both visitors and ‘locals’ – or regular commuters - alike. A fundamental requirement from Auckland Transport is that the kiosks must be staffed at least five days a week between approximately 6am and 6pm to capitalise on the high volume commuter periods.”

Mr Budd said Auckland Transport viewed the leasing opportunities as ‘partnership’ ventures – adopting base rental plus turnover ‘top up’ leasing structures..

Data from research bureau Canstar Blue reveals that Aucklanders spend an average of $14.02 per week on takeaway coffees.

Newmarket – the second busiest train station in Auckland after the Britomart hub - has an annual patronage of approximately three million. The station won a design award from the New Zealand Institute of Architects in 2010.
New Lynn Station has an annual patronage of approximately 1.4 million and sits just around the corner from the LynnMall retail hub and BrickWorks dining precinct. The station is also an important bus interchange.

Panmure Station’s annual patronage is approximately 1.3 million - the final piece of the Auckland Manukau Eastern Transport Initiative, growing public transport options between the CBD and Auckland’s south-east sector. The station was substantially renovated in 2014 and also acts as an important interchange for the local bus network.

Mr Patchett said business plans from prospective tenants would be assessed on a broad spectrum of criteria, including:

• The proposed service offering – encompassing the fit out concept and presentation, and the food and beverage offerings
• The proposed rental terms and turnover forecasts
• The prospective tenant’s existing trading record, experience, and financial position,
• The prospective tenant’s operating model, marketing plan, and customer integration strategy specific to each location.

Auckland Transport property manager Sean Corbett said that the city’s rail network patronage had increased by 20 percent on last year’s total.

“With the number of public transport users continuing to grow, we want to improve the customer experience for passengers,” Mr Corbett said.

“We have the physical infrastructure in place, and so we’re looking at what else we can do to improve customer convenience and amenity. Auckland Transport would like to have an operator or operators functioning from all three station sites in time for the summer season.”

The move by Auckland Transport to enhance its passenger experiences has already seen the organisation team up with supermarket operators to trial a ‘click and collect’ grocery service at a number of transport hubs across the city. The service allows commuters to order their groceries online in the morning and collect them on the way home.


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