Heart of the City CEO, Viv Beck, Auckland Chamber CEO, Simon Bridges and Committee for Auckland Director, Mark Thomas discuss the pain points in Auckland's infrastructure. Video / NZ Herald
Heart of the City chief executive Viv Beck says Auckland city centre is shaking off the effects of the Covid pandemic.
“We were in the eye of the storm for three years,” says Beck. “Before Covid we were affected by City Rail Link construction, so we have been through a tough five years.”
Last December retail sales around the city centre were at about 91 per cent of the December 2019 (pre-Covid) levels.
The broader December quarter was around 85 per cent of the comparable 2019 quarter. Beck says the city centre has been tracking up since restrictions were lifted and the border reopened. The pedestrian count is getting back to previous numbers.
On top of that, 20 per cent of the retail spend in recent times has come from international visitors, which is a return to pre-Covid levels.
Heart of the City uses vacancy rates as another gauge of how the city centre is tracking.
Beck says there is now good demand for premium office space.
“Quality office space helps attract workers back to the city centre.,” she adds. “We recently saw a report by CBRE [the commercial real estate firm] that says Auckland’s prime vacancy rates are declining.
“As time goes by, businesses are recognising again the value of having people working together, having them generate ideas by talking person to person, having the amenities and transport links, all this matters.
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“And some of the office space I’ve seen recently is spectacular: Firms are using stunning commercial buildings to attract workers back to the office.”
Queen St remains a strength. It accounts for about a third of all sales in the city centre. Beck says the total number of sales may rise and fall, but the street has maintained its share throughout the past three years. She says there’s substantial investment going into the waterfront that signals confidence in the city centre’s future.
Beck singles out the area around the waterfront and Britomart as places that are in great shape and show the way forward for the rest of the city centre.
Progress has been slower around the International Convention Centre (NZICC) and the area where the Te Waihorotiu City Rail Link station is under construction.
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The fire that damaged the NZICC not long before it was initially due to open has turned out to be devastating.
“We were taking people up there to have a look at the building.
“Everyone was very excited because it is so different from other convention centres elsewhere in the world.
“When it finally opens it will be a major drawcard for the city.”
Despite the setback, investment still pours into the area surrounding the NZICC site.
At 100 Hobson St, the new Horizon Hotel is delayed, but still going ahead. It will soon join other hotels either recently finished or under way.
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Precinct Properties is building the prestigious 139-room Intercontinental Hotel at One Queen Street at Commercial Bay. The Voco and Holiday Inn Express recently opened on Wyndham St.
For Beck, these hotel investments represent confidence in the central city and its future.
The midtown area which runs along Victoria St from the junction with Kitchener St across Queen St and up to the Te Waihorotiu Station is about to get a major refresh which will be ready when the new rail link delivers thousands of passengers to the area every day.
For Beck, people are an important part of the picture.
There are nearly 40,000 residents now. Along with the workers who commute in every day, more international tourists and a returning international student population, the city has recovered its vibrancy and diversity.
