CBRE clinches leasing for two shopping centres

CBRE New Zealand retail services division has strengthened its retail activity by clinching the leasing agency for two major shopping centres.

At Papamoa Plaza, Tauranga, CBRE retail services has been appointed sole leasing agent for a two-phase project that will see refurbishment of 14,000m² of retail space opening in September this year, plus the addition of 6000m² of new space over the next 12 months. 

Anchored by Countdown and The Warehouse, Papamoa Plaza is the only covered shopping centre servicing the expanding Papamoa residential area. 

It has 25 retail stores attracting more than 2.5 million customers and generates more than $52 million in annual sales.

The centre is now adding fashion and food offerings as it aims to become the region’s largest single-site offering, servicing Tauranga’s largest suburb and surrounding area. 

Papamoa is owned by Cephas Property Management, which also developed Barrington Shopping Centre in Christchurch and Richmond Mall in Nelson.

In Whanganui, CBRE retail services has also been awarded the mandate to seek tenants for the 2098m² former Briscoes site and 1200m² of retail space on Victoria Ave (part of the Farmers development) in the main Whanganui shopping area.

The developments are expected to rejuvenate Whanganui’s fashion and food precinct. 

“The buildings are all new, so there will be no seismic strengthening issues, just a great opportunity for retailers to complement Farmers and locate into footprints that will work for a mix of retailers,” according to Jonathan Curtis, associate director retail services.

The team recently leased a 216m² shop unit in Botany town centre north of Auckland to TSB on a six-year lease term.

A recent nationwide CBRE retail consumer survey reveals 24% of the 18-24 year old age group intends to spend more in shops over the next two years, while 43% expect to increase their online expenditure.

Mr Curtis says online retailing is a well-known trend. 

“However, what the survey illustrates is the ongoing relevance of bricks and mortar, particularly among lower-income brackets and those aged 18-34. Retailers and centres that adopt dual ‘bricks and clicks’ strategies will be well-placed.” 

Shopping centres must continue to offer shoppers convenience, plenty of parking, an attractive environment and other compelling reasons to visit, he says.