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AUCKLAND

Takapuna's high street revival

​Commercial property specialist JLL is seeing a regeneration of Takapuna’s retail landscape, as landlords spend on refurbishment to attract top tenants.


 

 

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Takapuna’s high street had seen little development for several years. Now, an area that was looking rather tired is putting its best foot forward as the retail market revives. 

JLL Auckland retail specialist JJ Hong says landlords are willing to invest money to refurbish their Takapuna premises. 

“They are thinking of the long-term payoffs more than the short-term expenditure. The good tenants are not in any rush. They will happily wait for the ideal site.

“The established retailers have their own design teams who know the concept well. They prefer to take responsibility for the fit-out work - whether the landlord contributes or not. 

“Premises with good ceiling heights and large glass frontages - where the building has been stripped back to a bare shell - are the most appealing to tenants. It’s a time saver and cost efficient. This format appeals to a wide range of users so it futureproofs the investment.”

She notes the six-storey building at 507 Lake Road as an example. 

The owner plans to put in new glass retail frontage on the ground floor, filling in the existing corner splay. There will be new ceiling tiles, lighting and floor coverings. By stripping it back to the concrete, the owner will then have an appealing proposition and can wait for the right tenant, Hong says. The whole space will be approximately 215sqm and will be available as one tenancy or two.

“We’re talking about professional landlords. They know what it takes to attract quality tenants. It’s an investment strategy for them. They get good tenants and good yields, so they can choose to hold or sell. These tenants will take longer leases, of six years versus three.”

Hong mentions the plans for 16 Northcroft St as an example of another planned refurbishment. It was previously a Bayleys real estate office, set back from the street with parking at the front. 

“RJH plans to extend the building towards the road, creating a top quality retail space with wide street frontage to attract a top tenant,” Hong says. 

RJH senior property manager Christopher Sutton says it’s an exciting opportunity. 

“We are committed to working with the new tenant to create something special in Northcroft Street,” he says. 

The influx of mid-range food and beverage options is giving North Shore residents plenty to choose from close to home, rather than crossing the bridge to dine out. It began with the Takapuna Beach Café and The Commons and in early 2016 Bird on a Wire, Burger Burger and Fish Fish are coming to Fortieth & Hurstmere. 

Hong also notes the addition of Josh Emmett’s Malaysian-inspired restaurant Madam Woo to the Lake Road streetscape in 2015. 

“The premises owned by Ben Cook had been empty for a number of years, following the vacation of Postie Plus.  After refurbishment the property attracted interest from the owners of Madam Woo. It has been touted as one of Queenstown’s best places to dine and Takapuna residents now get to enjoy it too.”

It’s not just food and beverage retailers moving in. The redevelopment of Hall’s Corner, at the intersection of Hurstmere and Lake Roads will be home to quality menswear retailer 3 Wise Men. 

Just around the corner, the property at 1 Byron Ave is being redeveloped and JLL is seeking interested tenants for this space, which will include ground-floor retail with large glass frontage onto Byron Ave. 

Hong expects to see the refurbishment trend continue along Hurstmere Rd. 

“Takapuna is rapidly becoming a very beautiful place to be. There are very few places where you can shop and dine in these kinds of quality outlets, right next to an urban beach,” Hong says. 

There are 16,189 people living within a 2km radius of Hurstmere Rd. As the area intensifies there will be even more demand for quality retail and dining experiences. The population of the Devonport-Takapuna Local Board area, which holds around 60,100 people (estimated population June 2015) is forecast to grow to 74,300 people by 2038.*

*Source: JLL Research and Consulting; Statistics NZ