Rotorua Central Business District Vacancy Survey

Reid and Reynolds Ltd in conjunction with Property Strategies (Rotorua) Ltd carry out an annual survey of occupancy and vacancy levels for both retail and office accommodation within the Rotorua Central Business District. This survey has been completed since 1989 and the latest survey was carried out as at December 2005. Highlights Vacant Retail tenancies continue to fall from 39 to 34 Retail vacancy levels are now at 7.05% This is the lowest recorded retail vacancy level since 1989 Office vacancy levels have improved slightly since 2004 down from 15.86% to 15.60% 56% of the office vacancies are for fair to poor quality space Retail The number of vacant tenancies has continued to fall and are down from 39 in 2004 to 34 in December 2005. The vacancy rate is now 7.05 %. This is the lowest vacancy percentage rate for retail tenancies since the survey started in 1989. This indicates that there has been an increase in confidence in retailing in Rotorua by both local and national retailers.

Since the development of the Rotorua Central Mall retail vacancy rates have in general fallen steadily to the current level. This reflects a high degree of confidence in the retail sector in Rotorua. It is evident that the majority of vacancies continue to be found around the fringes of the Central Business District away from the main retail strip shopping areas and predominantly in side streets such as Eruera, Hinemoa, Pukuatua and Haupapa Streets. The survey also includes analysis of the use of the occupied spaces. The highest use category is personal and household services at 26.7% of all retail shops, followed by café’s, restaurants, and takeaway bars at 19.6% and clothing and soft-goods at 16.9%. However on a total floor area basis Department stores occupy the most floor area at 18.7% of the available space for just 1.6% of the number of shops. Offices The results show that the slight upward trend in 2004 has reversed and the office vacancy levels have once again fallen. The vacant or unoccupied space has fallen slightly from 17,321 square metres in 2004 to 16,957 square metres in 2005. The vacancy rate is now 15.6% which has reduced slightly from 15.9% in 2004. Apart from 2003 this is still the lowest vacancy level since 1994.

By quality classification, the good quality space vacancies have reduced from 4,070 square metres to 1,918 square metres again showing a reversal of the 2004 trend. It is worth noting that 56% of the vacancies are now for the fair to poor quality space, thus indicating there is continued take up for good and average quality space. The vacancy rate for average space is some 5,583 square metres which is still substantially down from the high of 8,143 square metres in 2001.