New Zealand’s suburban retail hubs are entering a renaissance, spurred by the Covid-19 pandemic and a fresh appreciation of local neighbourhoods.

Chris Beasleigh, Bayleys national director of retail sales and leasing, says more people are working from home since the advent of the pandemic, and people are keeping within or closer to their home suburbs. This has made both established neighbourhood and suburban shopping centres along with new-to-market retail or mixed-use developments, more popular with consumers, something rubbing off on investors. 

“With a forced work-from-home directive during the height of lockdowns and the subsequent normalisation of a hybrid way of working, local shops and service retailers are very much in favour as people establish closer ties with their communities,” he says.

Suburban shopping centres tend to have plenty of parking – usually free – are located conveniently close to main arterials, and are close to public transport nodes. 

Usually home to a traditional neighbourhood store, along with services like hairdressers, nail salons, florists, butchers and artisan food stores, they rank high for convenience – “feel-good businesses that people want to support”.

Beasleigh says Bayleys has also noticed a resurgence in specialty bookstores. Retailers like these provide such centres true points of difference. 

“Many smaller retail businesses are driving their profile via social-media channels and showing that if you have the right product, people will seek you out.”

Dean Whimp, a director of Frontier Properties, says the power of neighbourhood retail and service hubs cannot be underestimated – particularly in the post-Covid era. 

“[People] want to be able to walk or take a short vehicle trip to the gym or a health-related appointment, and to frequent a cafe where they meet up with other locals, and get to know the business owners.”