Commercial Overview
Despite a predicted cooling of the residential property market and an easing of price growth in many regions, commercial sales across the country have been going from strength to strength, with Property Brokers Commercial experiencing a 70% growth in sales and leasing compared to this time last year.
Tighter lending restrictions, constant regulatory changes, and higher interest rates are the main reasons for a drop in residential sales, with investor confidence in this sector down dramatically from previous periods.
Interestingly, a recent Resimac New Zealand Property Investor survey of “small-time residential property investors” (those who own five or fewer properties), reported that 50% of respondents either already own or are looking at purchasing commercial property in the near future because of the ease and associated benefits commercial property investment pose relative to residential investment currently. MBIE’S latest statistics show a rapid decline in the number of rental properties on the market, further evidence that residential investors are being chased out of or exiting the market.
Commercial and industrial property is the asset classes that investors and developers have sought most because of the increasing demand and ease of management. Like many towns and cities around the country, those regions that boast an Industrial or Business Park have seen businesses thrive, and large national and international companies flock to the area to secure land when it becomes available. Through foresight, Bay of Plenty, and Tauranga in particular, have been blessed with industrial opportunities with Tauriko Business Estate and other planned Business Parks set to support the Port and other thriving Bay businesses.
Property Brokers’ Tauranga Commercial Team, led by award-winning agent Philip Hunt, has dominated the Tauriko Industrial space for some years now and has seen the benefit of the “clustering” effect Business and Industrial Parks provide businesses and the local community. Since its inception, Philip and his team have been actively involved in the Tauriko Business estate, knowing every inch of the park. They have developed long-term trusting relationships with many developers and businesses looking for a base. “Tauriko is my second home,” says Philip. “I’ve been here that long that I’m now getting second and third churns of property that I sold or leased out when the estate first opened. You know you’re doing something right when the same people approach you saying, “I’ve outgrown my space – can you find me something bigger.”
Hunt keeps comprehensive records of all inquiries, so he knows precisely what people are looking for and what is available. He will often pre-sell a development even before the sod is turned, which is great for the developer and the purchaser, knowing they have secured the space they want and will enjoy capital gain while the development is being built.
With demand for the industrial park being so high, Hunt now has the support of Christy Arundel, who has won several Customer Service Awards, to work alongside him at Tauriko. Hunt describes Christy as an “exceptional talent,” and alongside the rest of the Property Brokers Commercial Team, they continue to dominate the Tauriko and Tauranga markets.
Marty Love
National Commercial Manager Property Brokers Ltd