An artist's impression of a new six level office and retail building under construction at 306 Cameron Rd, Tauranga.
An artist's impression of a new six level office and retail building under construction at 306 Cameron Rd, Tauranga.
Tenants are being sought for the remaining unleased space in a new six-level building scheduled to be completed in Tauranga at the end of this year.
"Naming rights for the building at 306 Cameron Rd are also still available to tenants looking to rent either or both of the upper two floors," says Lloyd Davidson, leasing specialist with Bayleys Tauranga.
The $40 million building occupying a 3051sq m freehold site on the corner of Cameron Road and Third Avenue comprises 7800 net square metres of upper office space with ground floor retail and has the capacity to house about 600 employees.
In addition to outdoor space, it has an additional 2453 square metres of basement car parking which will accommodate 105 vehicles.
Davidson says the building, which is featured in Bayleys' latest Total Property magazine, has 940sq m for lease on the second floor, 1830sq m on the third floor and 1133sq on the fourth floor.
"One and a half floors - some 3014 square metres in total - have already been leased to a Government department under a confidentiality agreement. Manor Group, which was a previous tenant in the old building on the site, will be moving back into new premises comprising upwards of 200sq m."
Also already leased on the ground floor to the unnamed Government agency is 323sq m while negotiations are well advanced with a café operator to lease 244sq m of the retail area.
Davidson says there are four other street level retail tenancies still available ranging from 82sq m to 177sq m.
He says the per square metre rates for the floor space will vary depending on tenancy size and terms of the lease.
"However, being a new build, state-of-the-art premises, able to be bespoke-configured to a range of new tenants with its shared space concept, it will be very competitive in the Tauranga leasing market."
Davidson and Russell Adams of Bayleys Tauranga brokered the development partnership.
The development is being jointly undertaken by existing Tauranga-based landholder Manor Group TGA, in conjunction with Auckland-based developer/investor Watts Group Investments. Sister company Watts and Hughes Construction is building the premises.
A second artist's concept of the Tauranga building to be completed by the end of this year.
"Levels two and three of 306 Cameron Rd will offer a new concept to the city's commercial leasing market," Davidson says. "It is targeted to the smaller professional and creative companies of Tauranga, along with new businesses coming to the city.
"Typically these businesses have 10 to 30 staff and have found it difficult to secure international-quality space at competitive leasing rates.
"The Cameron Road/Third Avenue concept uses the international office trend of shared space with tenancies sharing the front of house areas like meeting rooms, seminar rooms and break out spaces for staff.
"This removes the cost of minimally-used spaces like meeting rooms and staff break out spaces for lunch and casual meetings which all tenants usually pay for at full lease rates, within their own tenancy.
"This model enables tenants to reduce their office footprint to the bare minimum therefore their net lease costs are lower and they pay only a portion of the leasing costs for the less-used facilities, rather than the full cost," Davidson says.
"There is no need to have six lunch rooms or 12 meeting rooms on one floor for six tenants for example. Those spaces are taken care of in the shared area which significantly reduces the per square metre tenancy rate - but at the same time increases the access to more space.
"Additionally, the shared space concept provides networking opportunities between the employees of complementary professional service companies."
Davidson says the shared space concept also permits each tenancy to have large client functions within the substantial communal space - something not normally provided for in a small to medium size space with a traditional fit-out.
"For example, the Level three floor plate of the Cameron Road/Third Avenue premises has been conceptually subdivided into six separate tenancies - ranging in size from 100 to 410 square metres with the shared street concept of nearly 300 square metre floor space. The flexibility of office configurations allows the full range of tenants and office sizes to be accommodated on one floor."
He says Level two has the potential for four tenancies ranging in size from 138 to 215sq m, as part of a total floor plan of 1778sq m.
"Facing directly onto Tauranga's busiest arterial road is a definite benefit for potential retail tenants - particularly as Cameron Road links the CBD to outlying suburbs - and the building has been designed with floor-to-ceiling windows facing to the north, east, south and west to maximise the available natural light.
Davidson says additional car parking for staff working in the building will be available some 200 metres away.
