TelferYoung Discuss The 2015 Vacancy Survey

TelferYoung has 16 locations across New Zealand and with a team of around 140 staff nationally they have a solution for your property needs near you. This month they are looking at the 2015 Rotorua Central Business District vacancy survey which covers office and retail space in the Rotorua Central Business District.  This latest survey was undertaken in December 2015 and has shown positive reductions in vacancy levels for both office and retail accommodation. 

TelferYoung has noted that within the retail sector, there has been both a decrease in the number of vacant retail shops and a decrease in the amount of vacant retail space in square metres.  The retail vacancy rate is now 15.4% based on tenancy numbers with 82 vacant shops. Within the office sector, there has been a noticeable decrease in vacancy rates since 2014.  The office vacancy rate is now 15.3% based on floor area with 15,951m² of vacant office space.

The retail sector is showing very positive signs with decreases in both the number of vacant shops and also the amount of vacant floor space.  There are now 82 vacant shops compared with 87 in 2014 and 85 in 2013.  This represents a vacancy rate of 15.4% or an occupancy rate of 84.6%. It should also be noted that 23 of those vacant shops are in the Hinemoa Arcade building underneath the Royal Court Apartments between Hinemoa and Pukuatua Street. The majority of these shops have been vacant since they were re-developed in 2011.

The Rotorua Central Mall and Tutanekai Street are the prime retail shopping areas of Rotorua, having the highest pedestrian counts respectively within the Rotorua CBD.  Traditionally low vacancy rates have been common in those areas.  The Rotorua Central Mall is now fully occupied.  However, vacancies in the main Tutanekai Street strip shopping area have increased considerably since 2011. The lowest vacancy rates in Rotorua CBD now are found in the Rotorua Central Mall, Eat Street at the northern end of Tutanekai Street and surrounding the Rotorua Tourism Centre on Fenton Street.

Overall, vacancies for retail space within the Rotorua CBD have decreased in 2015.  This trend is in contrast to difficult retail conditions nationally where increased internet trading, changing spending patterns and economic conditions have impacted directly on retailers nationwide.

TelferYoung have analysed the premises presently occupied, based on the type of shops operating in the CBD.  The highest number of retail shops measured in tenancy numbers is for personal and household services, being 24.5% of the total number of tenants followed by cafes, restaurants and takeaways at 21.6%, and clothing and soft goods at 12.0%. Generally, there have been no significant changes in use this year with results tending to follow similar trends to 2013 and 2014.

In the office sector, the overall vacancy rate has decreased to 15.3% with 15,951 square metres of vacant space and there were 57 vacant office tenancies. A key trend emerging is the development of new purpose built space for tenants wanting to relocate to prime space.  This year they have seen significant new developments for the Department of Corrections, ACC and Glenn Hawkins and Associates with more new office suites planned and pre-leased for development in 2016. For further information about commercial property valuations and property valuers please go to http://www.telferyoung.com .