Big projects bolster CBD

Redevelopments, do-ups and office shifts abound in Hamilton’s CBD, with one market watcher describing it as far beyond what the city’s seen before.

Tenants looking for better buildings are spurring work around the city, NAI Harcourts managing director Mike Neale said.

‘‘I look at where we were 10 years ago, it was fairly dire, to be fair. You look at it now: building by building, you’re seeing either refurbishment or redevelopment or demolition and rebuild.

‘‘We’re seeing it on a vast scale, far beyond what Hamilton’s seen before.’’

A host of projects are under way or in the pipeline: an ASB regional centre opposite Centre Place, an old Countdown building being turned into a Genesis Energy office, Sudima Hotel building getting a makeover.

Waikato Regional Council is looking at a CBD move, Corrections moved to a new London Street office, and Waikato District Health Board is reworking the former Farmer’s building.

A new theatre is looking likely, Neale said, and more CBD fringe spots are being turned into highdensity housing.

Businesses new to Hamilton CBD – or Hamilton city – have set up shop, including New Plymouthbased BTW Company in Anglesea Street and the Magazine Designer Clothing range in Worley Place.

It’s ‘‘absolutely amazing’’ what has happened in the CBD over the past three years and what’s likely to happen in the next, he said.

There’s a cycle of opportunity as commercial tenants shift – a move to a higher-grade building means the one left behind is redeveloped.

‘‘The old-school landlord was, bring me a tenant and I will do whatever they want. That doesn’t work any more,’’ he said.

‘‘You have to do a reasonable degree of work upfront.

‘‘We’re very much in an evolution of the CBD in terms of quality of space, uses of space . . . Hamilton seems to have identified itself as a place to be – for people to live, for businesses to be.’’

Measures of retail and office occupancy in Hamilton’s CBD in the first half of 2017 came out of a survey NAI Harcourts has recently completed reports on.

Office vacancy hit a low of 6.3 per cent in the first half of 2017, according to a Harcourts report – thanks to a temporary spot taken by the Electoral Commission.

Retail vacancy increased to 8.3 per cent off the back of a record low at the end of 2016.

Hamilton Central Business Association general manager Vanessa Williams feels good about the vacancy rate because other developments are on the way.

‘‘There’s actually quite a bit of staggered growth or development completion happening which will continue that feeling of more people on the street and a level of buoyancy,’’ she said.

More retail spaces are likely to be filled by pop-up shops or trial leases as Christmas approaches, she said.

The Harcourts report says it’s too early to tell whether the CBD retail market has moved into a new phase of adjustment or is experiencing a temporary slowdown.

The retail vacancy increase would be skewed by a few bigger vacancies, Neale said, as the survey is based on square metres available rather than the number of tenancies.

Building work is going on in this sector, too – the survey excludes 34 spaces not in use because they are being refurbished or fitted out.

That’s an increase of six projects on the previous survey.

The occupancy report notes ‘‘increased and consistent demand for small retail spaces’’ and shopkeepers are looking for more boutique-style spaces, Williams said.

Food still dominates central city, both in number of outlets and square metres.

On the office front, a drive for high-quality spaces has been noted by both Williams and Neale.

Harcourts’ figures show Hamilton has 147 leasable spaces rated A and B, and all but eight are occupied.

Some businesses are opting for a new build – an example being the new ASB regional centre under construction on the corner of Bryce and Barton streets.

It’s due to be complete by mid2018 and will house more than 90 workers, who will shift from Collingwood Street – including retail, commercial, business and rural banking teams.

‘‘ Hamilton seems to have identified itself as a place to be – for people to live, for businesses to be.’’

Mike Neale, NAI Harcourts