Businesses return to the inner city

ALMOST FULL: Smiths City prepares to take one of the final spots at Rotorua Central. PHOTO/STEPHEN PARKER 180714SP1

Rotorua's inner city is feeling the positive effects of Rotorua Central reaching capacity - with new businesses looking at central city options because of a lack of space in the mall.

The addition of Life Pharmacy, Shampoo Plus and Tank Juice Bar into Rotorua Central has left just a couple of kiosk spaces up for grabs in the popular complex, and that's being seen as positive news both for the mall and the wider inner city.

At least two new businesses who wanted to go into the mall have set up in Tutanekai St, after being turned away from the mall because there was no available space, according to one Rotorua real estate agent.

Bayleys Rotorua's Mark Rendell said he had noticed an increase in interest in central business district premises over the past couple of months, partly to do with the lack of space at Rotorua Central.

Mr Rendell said Taupo surf and streetwear company Addiction was moving into the old Glassons site in Tutanekai St.

"Their preference was to be in the mall but they didn't have any space. Another one from Hamilton wanted to be by the mall for foot traffic."

That business, The PC Hutt, has moved into the mall end of Tutanekai St.

Mr Rendell said they were still getting a good stream of enquiries from people looking at leasing commercial buildings, both from businesses new to town and ones on the fringe looking to get closer to the town centre. "Everyone is a little bit more positive."

He said the major issue was around the earthquake ratings of buildings with some tenants opting not to look at buildings with low ratings because they didn't want the disruption to their business if and when work was carried out.

Nadia Christensen from Professionals McDowell Real Estate said she'd noticed "lots more enquiries" over the past three to four weeks.

She said it was a mix of people from out of town looking at Rotorua, but also a lot of Rotorua businesses looking at other options as leases came up for renewal.

She said in the past week she'd signed up two new leases in Pukuatua St which was exciting.

At Rotorua Central, work is progressing on the Smiths City site, with the store expected to move from Te Ngae sometime around October.

Pukeroa Oruawhata client manager Peter Faulkner of Deloitte said they had worked very hard to get to the stage they were at now, with almost 100 per cent occupancy.

He said there were no plans to expand the mall at this point, and they wanted to "let things settle".

Mr Faulkner said people wanted to be in a vibrant space and he believed Rotorua Central had now achieved that. The addition of the new fountains outside the mall had attracted attention and helped form a strong link with the central business district, he said.

The flow on effects of the mall being fully occupied were positive for the whole city, he said.