High-quality large format retail developments are still attracting big-name brands as they prove a strong drawcard for retailers.
Recent developments in Nelson, Blenheim, Auckland, and Upper Hutt that have been leased by Colliers have proven successful in bringing new offerings to their respective markets.
Nelson Junction, located at the intersection of State Highway 6 and Quarantine Road, is a large format retail precinct anchored by a Mitre 10 Mega that has seen a host of new tenants join the fold.
JB Hi-Fi, Chemist Warehouse, Early Settler, Petstock, and Mountain Warehouse are just some of the international and new-to-region retailers that have taken up tenancies in this major development.
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BedsRus and Baby Factory are well-known New Zealand brands who have elected to open their first stores in the region in this location. Existing retailers in Nelson, including Bed Bath & Beyond and Hunting & Fishing, have relocated their local stores here.
Only two tenancies remain in this precinct and prospective tenants can join a complementary mix of retailers, many of which are new-to-market offerings. Toyworld has returned to Nelson following a hiatus and taken up a spot in this development.
The leasing of this property has come together in less than two years and Colliers worked closely with local developers Gibbons.
In Blenheim, a new development on Westwood Avenue has seen Bed Bath & Beyond, Mountain Warehouse, Number One Shoes, and Noel Leeming join a hub that is anchored by a Pak'n Save, Kmart, Harvey Norman, Chemist Warehouse, and Bunnings.
There was considerable demand for this greenfield development that includes category leaders and the leasing came together quickly.
In Auckland, the Westgate precinct continues to expand with the opening of the 19,000sq m Maki Centre set for early 2025. Baby Bunting, JB Hi-Fi, Supercheap Auto, Hunting & Fishing, Petstock, and Tesla are among the international brands that have committed to this centre. Three other well-known retailers are on the cusp of committing.
Meanwhile, in Upper Hutt, a national automotive retailer, Bed Bath & Beyond, and Petstock have entered a reimagined area that was previously held by two tenancies but has been split into three.
Leroy Wolland, National Director of Large Format Retail Leasing at Colliers, has played a hand in leasing all of these developments and says being able to collaborate with local Colliers Brokers offers prospective tenants the right mixture of strategic advice.
"The execution of large format retail developments requires long-term thinking and creating a complementary tenancy mix is a crucial step, Wolland says.
"The retailers do their homework on the respective local markets and will target a store of a specific size and retail environment that will have the ability to trade well. Things such as the store configuration and access to car parking are important factors.
"The developments we have leased recently in Westgate, Nelson, Blenheim, and Upper Hutt are excellent examples of what can be achieved when there is the right retail mix. A-grade leasing opportunities always demand the attention of tenants."
While economic spending data has not been positive for the past 18 months in New Zealand, the continued leasing of new space by large format retail operators has shown retailers take a future-focused approach.
"Often these developments can defy the general retail environment and well-located, large format retail leasing opportunities will be appealing to retailers and they will act on those opportunities.
"These operators have the capacity to weather short-term cyclical challenges and are generally established brands that have a long-term outlook.
"We know that increased spending among shoppers is on the cards over the next couple of years as the economy recovers and this will provide a boost to these retailers who have capitalised on leasing high-quality space."
- Supplied by Colliers
