KEY POINTS:
Westfield NZ is already planning an expansion of its $210 million Albany shopping centre, just days before the first stage opens, as demand for retail space in Auckland remains strong.
Justin Lynch, Westfield's deputy director in New Zealand, said further shops could be developed on the site and
more carparking could be found, depending on demand.
Further expansion was part of Westfield's long-term vision for Albany, he said.
The area has strong demographics including a relatively young white-collar population with high retail spending capacity.
Westfield will open its first 65 shops on Thursday and the remaining 77 on November 1.
But it can build far more than the 5.2ha of floorspace it has just developed on the site.
Lynch said Westfield could develop further shopping on the northern portion of the site and could make use of an extra 200 existing carparking spaces near the North Harbour Stadium if demand was strong.
Westfield has already created parking for 2300 vehicles and Lynch said he was confident this would be enough, even at peak times when thousands of people will be in the centre on Don McKinnon Drive alongside the Pak'N Save supermarket.
The new centre is fully leased to tenants including Farmers, K-Mart, SkyCity Cinemas, New World, Life Pharmacy, McDonald's, Hollywood Bakery, NZ Post, Nature's Window and Stewart Dawsons Jewellery.
Alan McMahon, director of research and corporate services at Colliers International, said demand for retail property in Auckland was extremely robust.
Westfield knew the market well, the Albany area had a booming population and strong leasing levels all pointed to the new centre being a success.
"Albany is an amazing expansion and I reckon if Westfield reckons there's demand, who are we to argue with them?" he said.
"Demand for retail is the same as demand for offices: you don't need any more but as better ones get developed they tend to be successful and the less attractive ones fall off the other end."
Colliers' research report on the Auckland CBD retail sector showed that at the end of last year, only 2.9 per cent of prime properties were vacant.
"It appears that for many consumers, a feeling of security is ingrained, fuelled by high job security, low unemployment and strong wage growth," the report said.
Other leasing experts have found Albany needs far more shops than Westfield is developing, gauging demand for new retail space of about 16ha, when Westfield is about to open less than half that.
Rival developers Albany Property Investments are counting on the area growing strongly.
They are planning a new $500 million town centre with offices and extensive underground parking.
"The Albany City precinct is likely to be become North Shore City's major commercial centre," they said.
"The North Shore City Council's modelling has projected that it will have a population of more than 9000 residents and 15,500 workers, once the Albany City precinct is developed to capacity."
Bayleys Research was upbeat about the new mall at Albany.
"Westfield is developing a site in Albany which will become the pivotal component of the development of the Albany Town Centre," it said.
"Located at the junction of the Northern Motorway and the Albany Highway, the centre is a 15-minute drive from the CBD.
"Westfield hopes their Albany site will be a compelling shopping choice for residents from the Hibiscus Coast to the north, the East Coast Bays to the east, and the growing population of the North Shore."
GROWING LIKE TOPSY
* Albany has become the fastest growing area in North Shore City.
* In 2001 21,612 people lived in the area, up 55.9 per cent on 1996.
* By 2021 there could be 44,000 to 55,000 people living there.
* A further 35,000 to 40,000 could be working in the wider Albany area.
