Garage Project at 91 Aro St, Wellington features a changing selection of craft beers. Photo / Supplied
Garage Project at 91 Aro St, Wellington features a changing selection of craft beers. Photo / Supplied
The growth of craft brewing in New Zealand – both off-premise and on-premise – is now so noticeable that Bayleys Real Estate has established a specialist sales and leasing team for this niche segment of commercial property.
In Auckland, the suburbs of Grafton through to Morningside – effectively straddling either side of Eden Park and adjacent Kingsland – are now the epicentre of this phenomenon, featuring brewery operations with both on and off-premises licences and a range of food offerings.
The trend is being replicated in Wellington, where Upper Hutt is now home to the region's craft breweries.
Bayleys' national retail sales and leasing director Chris Beasleigh says the minimalist, industrial chic nature of the new venues is a reflection of their tenants.
"As with its product offering, the craft beer sector is cutting-edge when it comes to its real estate profile," says Beasleigh.
"Stereotypically, 'mainstream' hospitality operations are located in areas with high foot traffic volumes, city centre or suburban retail hubs, high streets and malls. They play it safe.
"Conversely, the new venues coming to light – particularly in these new hubs in Auckland and Upper Hutt – are more 'destinations' which are out of the way. They're places and venues customers specifically go to, rather than wander past. They are edgy and not afraid of taking risks – yet they are also very calculating from a wider business perspective.
"As a result, their tenancy terms are often at far lower per square metre rates than traditional locations. That's purely a smart business move driving straight to the bottom line.
"Additionally, and replicating craft beer's persona, the new wave of premises could be termed 'grunge' – although the more technical term would be 'industrial'. That is, the likes of converted warehouses, factories or manufacturing plants. Yet ironically, particularly for on-premise operations, they are usually more family friendly than many of the bars whose target market is 18 to 28-year-olds."
Beer Jerk Bunker Bar and Save Ferris operate from the same 1930s building at 224 Symonds St, Auckland. Photo / Supplied
Beasleigh says it is no coincidence that one of the other fast-growing trends in the hospitality business sector – food trucks – is closely linked with the new outlets and their property dynamics.
"These venues are very much about bringing limited release styles and varieties to market, keeping consumer interest piqued by bringing product to market that may only be available for a matter of weeks or months," he says.
"That ethos is reflected in food trucks which can be rostered in occupancy with outlets on an ever-changing weekly basis.
"The smart thing about partnering with food trucks is that they remove the requirement for venues to have commercial production kitchens on-site occupying part of their available floorspace, while still ensuring the venue meets its liquor licensing foodservice obligations."
At its northeastern most point, the Eden Terrace to Morningside zone in Auckland is anchored by two independently-run haunts operating from within the same site in Symonds St – a two-storey 1930s ex-post office building sitting on 393sq m of commercially-zoned land.
Subterranean venue the Beer Jerk Bunker Bar, with an array of 300 alternative label bevvies, is located in the tiny 40sq m basement in what was once the post office's vault
Above it, on the 100sq m ground floor, Save Ferris has opened New Zealand's first 'craft beer parlour and amusement arcade' – featuring pinball, pool tables, retro games such as Donkey Kong and a selection of beverages. The remainder of the building is used as commercial office space.
On the other side of a council-run car park, about 100maway, sits the legendary Galbraith's Alehouse which has been serving cask-conditioned English style ales since 1995.
Regarded as the 'godfather' for the city's beer lovers, Galbraith's 518sq m neo-classic venue is located in what was the Grafton Public Library.
Around 300m further south in Eden Terrace is Brothers Beer – one of three chain venues in the city, with the first located in what was the former Auckland City Works Depot on the corner of Wellesley and Nelson Sts.
In Eden Terrace, Brothers Brewery & Juke Joint combines a bar and traditional southern barbecue restaurant in a 1960s' styled, 762sq m saw-toothed roof warehouse, previously used for leather manufacturing. It is located on 2691sq m of land zoned Commercial 8F with an allowable retail use.
What was once the inward/outward goods loading zone has been converted to a children's play area and outdoor seating zone.
Around the corner, industry-innovating Wellington-based brewery Garage Project is running a retail off-premise operation in New North Rd out of what was a warehousing location with stock-standard office space on the upper level.
Now with polished concrete floors, the Garage Project venue, once home to uniforms manufacturer Elizabeth Michael, occupies a 368sq m two-storey 1980s building – with retailing on the ground floor and administration office space above. Even though the Garage Project premises is for 'takeaway' liquor sales only, the venue regularly partners with food truck providers on weekends.
Towards Eden Park in Charles Street, Mt Eden, surrounded by light industrial properties and tenants, the brewing entity of Behemoth has taken out a 20-year lease on a 1000sq m property which was previously Woolf Mufflers for 50 years.
In Eden Terrace, Brothers Brewery occupies a 1960s' styled, saw-toothed roof warehouse. Photo / Supplied
While purely operating the site for brewing operations at present, there is speculation that, subject to appropriate consents, the marque could easily look at expanding into off-premise retailing in a similar vein to Garage Project.
Further towards Western Springs – but leapfrogging the more 'designer' restaurants and bars of Kingsland – other craft beer companies are taking up residence.
Urbanaut Brewing Co. (also home to the Yeastie Boys brand) occupies the upper floor of a 1950s-style warehouse. The 600sq m premises houses the brand's entire brewing operation – installed in a relatively simple process thanks to the building's open plan nature.
Previously housing First Scene Costume and Party Hire for 16 years, the production brewery is open for tastings and takeaways only.
Across the road, trailblazer The Beer Spot, is taking up residence in a newly-refurbished 260sq m location with an outdoor garden bar - once home to Phantom Billstickers.
The cult-following Beer Spot brand launched onto the market in 2016 in former light industrial, high-stud, concrete floored premises with no street frontage and minimalist decor in Auckland's Northcote. The venue is now one of the North Shore's most profitable hospitality operations.
Having also just opened a slightly more family-friendly spot in Huapai on Auckland's western perimeter, the company is aiming to largely replicate its first venue.
Meanwhile, down south, the Upper Hutt City Council has been quick to market Brewtown as a destination food and drinks experience – with operators taking up space at what was the Dunlop tyre-manufacturing plant within the South Pacific Industrial park 800m from the town centre.
Three local brewers – Boneface, Te Aro and Panhead (now owned by the Lion Group) – sit alongside each other in the converted 36,000sq m plant, with Kereru Brewery literally over the fence in what was a former linoleum manufacturing and warehousing complex.
The tenants' external footprints are being expanded with decking allowing for outdoor seating.
Capitalising on significant former staff parking amenities, the tar-sealed areas now accommodate patron car parking for 400 vehicles in a communal mall-like environment.
Boneface and Panhead both operate under on-premise licence by-laws, serving food, while Te Aro and Kereru serve product under retail off-premise regulations. All four run substantial brewing plant on-site – allowed under their location's commercial/industrial zonings. Collectively, they attract large Friday and Saturday night crowds.
Two new establishments are joining the ensemble soon – a wine bar plus Wild Kiwi Distillery, producing whisky, bourbon, gin and vodka. By this time next year, the site will house seven different liquor and food-related experiences.
Brewtown's owners will lay on tours to collect visitors from cruise ships for a distinctive food and beverage experience.
