A commercial property ”explosion” has hit the Tauriko Business Estate as demand for land reaches a record high and tens of millions of dollars are pumped into new buildings.
The latest survey from Element IMF Limited showed in February there were 94 businesses based at Tauriko that employed 2008 people.
Director Bryce Donne said the 2018 financial year was shaping up as the busiest year yet at Tauriko, with more than 16ha of titles to be delivered and sold.
”By March we will have delivered 80ha of net industrial land out of a project total yield of 180ha,” he said.
”We are busy with construction works and planning for the next stages of release meaning that overall we are about half way through the project.”
Colliers International Tauranga investment sales and industrial leasing specialist Rob Schoeser said Colliers had more than $60 million worth of investment sales at the Tauriko Business Estate.
”Investors want new buildings, which are low maintenance with good leases.”
Some of the larger transactions were Brother in Matarawa Pl worth $10.25m, Downers Taurikura Dr at $14.5m and Kiwi Bus Builders in Whakakake St at $7.35m.
Mr Schoeser said NZL Group was also moving from Mount Maunganui to a $20m, 17,000 sq m purpose built, high-tech facility at Tauriko.
Growth at Tauriko was a barometer of Tauranga’s buoyant economy, said Tauranga Chamber of Commerce chief executive Stan Gregec.
”It’s where the smart money is being invested for new industry and is becoming something of a logistics hub. It shows there’s a lot of confidence at the moment in Tauranga’s economic future.
“We tend to see the bigger industrial and logistics players being based there.”
“With excellent transport links, Tauriko has become an outstanding location for business and industry in Tauranga. Its importance will only continue to grow.”
Availability of good quality greenfields industrial sites in Tauranga was rapidly drying up, he said.
”Anyone who has invested in going into Tauriko has made an excellent call for the future.”
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