Hamilton’s growth on its northern urban boundaries is seeing the relocation of retail services away from the CBD and residential expansion according to new research.
Analysis from real estate agency Bayleys has revealed that the success of The Base shopping precinct in Te Awa in attracting both retailers and shoppers was continuing to put pressure on CBD retailing.
Bayleys Research national manager, Ian Little, says, “Both primary and secondary shopping strips within Hamilton’s CBD are coming under significant pressure, with high levels of vacancies and softer pedestrian traffic.
“There is no quick fix to these challenges. Council plans to rejuvenate the CBD will take time to generate results. Ultimately a more vibrant and rejuvenated CBD will attract more businesses and workers and lead to increased retail spend.”
Little says retail activity within the CBD’s biggest mall, Centre Place, is performing well, with a $36 million upgrade in 2013 consolidating the venue’s position as the primary retail destination in the central city.
However, rental levels in other nearby retail locations have not fared as well.
“Prime retail rents have generally remained flat over the past year, while those in secondary locations suffering higher vacancies have come under further downward pressure,” Little says.
“Investment activity has been subdued to date. This is about to change, with two major Hamilton shopping centre owners recently announcing plans to sell down their holdings. Kiwi Property Group has put its redeveloped Centre Place South complex on the market and Scentre Group has also placed Westfield Chartwell on the market.”
Little expects Hamiltonians will be eagerly waiting to hear the city council’s plans for rejuvenating the CBD to have a stronger connection to the adjacent Waikato River.
“These proposed initiatives will both attract, and retain, more businesses and workers within the CBD as an increasing number of retail and commercial opportunities emerge outside the city core,” he says.
“The new Hamilton plan, with its particular focus on an active, strong commercial central city and connection to the river and residential living is starting. Links to the river have been particularly underutilised in the past and are now being addressed.”
Statistics NZ forecasts Hamilton’s population to grow by 29 per cent from its current level of 148,000 residents to 191,000 residents by 2033.
“Much of this population growth is currently occurring to the north of the city in areas such as Rototuna North where attractive house and land packages are drawing more families,” the Bayleys Research report says.
“Proximity to employment zones such as Te Rapa Park, and newer retail centres such as The Base in Te Awa, will help underpin growth to the north of the city.”
