Investor confidence in Tauranga is the third highest in the country behind Auckland and Queenstown as the region displays "the perfect storm" of factors to support the growth of its industrial sector, a new report says.
Several elements are working together to ensure the continued success of industry in the region and improvement of consumer confidence, according to the report by Colliers International Industrial Research.
"The area has one of the highest proportions of manufacturing employees in the country which provides significant demand for older and more established industrial premises," it said. "The port and major arterial transport networks feed the expansion for transport and storage requirements, particularly for warehousing and yard space. The region also continues to enjoy some of the highest population growth rates in the country, and with it comes the demand for industrial space to service construction activity."
The report noted rising pressure to increase rent for high-quality industrial space above the current $90 to $100sq/m and the low interest rate was continuing to encourage business owners to purchase or build their own premises which was particularly noticeable at the Tauriko Business Estate.
Rachel Emerson, commercial manager of Tauriko management company Element IMF, said 15 buildings were under construction at the estate, the most there had ever been.