North Island provinces growing

By TOM CLARKE

Big-city people, who are shifting to the provinces for lifestyle reasons, are helping create opportunities for Harvey Corporation.

The real estate agency, which has 60 branches throughout the North Island, has appointed Graeme Fraser as its Auckland-based business development manager.

He will be responsible for developing new business opportunities for the group in the central and lower North Island to build on the strong growth Harveys has already been experiencing in that region.

Mr Fraser, who has spent the past three years as principal of Harvey's five Hawkes Bay branches, says there is a lot of lifestyle and entrepreneurial activity in the provinces.

Self-employed information technology or advertising consultants, for example, are buying properties in Hawkes Bay and bringing their businesses with them from cities such as Auckland.

Whereas a year or two ago there was quite a bit of commercial and office space vacant in Hawkes Bay, that has now fallen or been filled up.

Cost is a factor. Medium-grade industrial office space at the Auckland Airport costs about $130 sq m to lease. Top-end warehouse space at Penrose costs $95 sq m and CBD office space $150 to $450. But in Napier and Hastings air-conditioned office space costs about $120 sq m and reasonable industrial space starts at about $40, he says.

One of the downsides of shifting to the provinces, Mr Fraser says, is that there is a lack of IT support staff there. But when a manufacturing business weighs up the need to be close to its market or where it exports from, with the cost of rent and a reliable labour force in the provinces, it might come down in favour of the latter.

The increased number of trucks which are serving the provinces make it possible for smaller centres to survive, he says.

Mr Fraser says he feels positive about the area he will serve.

"There are a lot of entrepreneurs out there who haven't taken much notice of the negatives happening around them, who have established some good businesses in spite of the dollar and our other problems."

Harvey Corporation is planning to capitalise on that innovation and Mr Fraser says it is a matter of getting out in the market place and sharing and encouraging the development of ideas.

Apart from a background in real estate Mr Fraser worked in financial services for 20 years.