For lease signs are a common sight in Rotorua's CBD at the moment. Photo / Andrew Warner
There has been a surge in For Lease signs popping up across the city's beleaguered CBD since lockdown.
But how many of those are due to the effects of Covid-19 is yet to be determined.
Some of the more recent properties to come up for lease include Ronnie's Cafe on Pukuatua St, Designer Direct on the corner of Tutanekai and Pukuatua Sts, Backdoor on Tutanekai St and The Bakehouse Cafe opposite Central Mall.
An informal count by the Rotorua Daily Post this week found 27 shops with for lease signs posted.
It has been said the CBD is too big for what is needed now and one business leader says a raft of initiatives would need to be rolled out simultaneously in order to restore the area.
Professionals Rotorua McDowell Real Estate commercial saleswoman Nadia Christensen said there had been a few inquiries, but a lot of those were "people wanting to downsize or wanting to find cheaper property".
"There was a bit of a rush of inquiries after lockdown lifted for new businesses but that has quietened off."
Christensen said a lot of the spaces for lease were upstairs office spaces but agreed there were some big retail spaces waiting to be filled.
"There has been a surge in new listings.
"I think there will be a little waiting period but I am confident they will be filled. It's a matter of being that matchmaker and having landlords that are happy to negotiate, keep their properties tidy and are willing to work with the agent.
"I'm not too sure what's going to be the future for the CBD but right now each block has its merits and there are still some lovely shops that want to be there."
Rotorua Chamber of Commerce chief executive Bryce Heard acknowledged there were a lot of empty shops post-Covid.
"Some of them were going to close anyway. For some, Covid-19 provided a convenient reason for stores to close that were already struggling."
But Heard said the issue of empty shops was not a problem unique to Rotorua.
"People want to go to a mall. They want to be able to park their car and access all the big chain stores that can give them discounts.
"People are also shopping online more so these two factors coupled together results in a reduction of foot traffic which makes leasing in the CBD less appealing.
"Our current CBD is a hangover from the past and is too big for today's demand, there are too many retail spaces for what's needed now. But that's the same in any provincial area."
Heard said there were many initiatives that could help revitalise the CBD, though he said many of these would have to be rolled out simultaneously to effectively make a change to the current situation.
"Any one thing alone will not be enough to restore the CBD. We need it all and we need everybody to be on the same page with it.
"There needs to be a comprehensive plan, otherwise the empty shops will be long-lasting."
Despite this, Heard said feedback the chamber had received from property owners was that there had been an unexplained lift in inquiries.
"We have been surprised and pleased by the level of business confidence."
TelferYoung registered valuer Grant Utteridge said it was too early to comment on whether Covid had an impact on the CBD's empty shops but said TelferYoung would be looking into it next month.
Atlantis Books owner Fraser Newman said there were more empty shops than before lockdown.
"We've seen some good ones go, though not all because of lockdown."
However, he was confident the city would be able to attract new business in time.
"The fundamentals are strong. When recovery comes it will be fast. What spirals out of control tends to spiral back into it."
Newman said in his opinion, now was the time to hunker down until there was a clearer picture of what was happening.
"Another lockdown would be catastrophic but so would not doing it if we needed too. If we can get through with no second wave then business will slowly improve, but things will be bleak for the next two years or so.
"We all rely pretty heavily on the tourism trade. Foreign tourism is gone and as a recession sets in we won't see as much domestic tourism. Landlords are going to have to be careful as empty shops will likely be empty for a while.
"I don't think tweaking marginal issues at the moment is going to make a big difference. This is a once in a century event. This also isn't the time to take major steps. We need to buckle down, tighten our belts and prepare. At any time we could be weeks away from level 4 again, we can't assume we're in the clear.
"Though commercial rates need to be evaluated long-term, I'd leave these talks as well as parking until we have a better idea of what is happening."
In a written statement provided through the council's communications team, mayor Steve Chadwick said the CBD had been a concern for several years and Covid-19 had added further challenges.
"The CBD is a complex neighbourhood with many different stakeholders – from property owners to business owners and operators – and council has a role to bring all different views into a cohesive effort or plan for improvement.
"The work of the CBD sector group, established as part of Rotorua's Build Back Better economic recovery strategy, will give us a better understanding of what's now needed and how council can contribute.
"I can't speak for businesses or the decisions they make, but we know Covid-19 has had a big impact and will do for some time. We have yet to understand the full impact across our district and will need to remain flexible in how we respond to new and emerging challenges and opportunities."
Chadwick said the council's spatial plan identified the commercial footprint of the CBD was too big and there was support for development of inner-city housing, "but we can't tell owners what to do with their properties so how we incentivise that is a challenge we need to overcome".
"The CBD functionality review approved last year to look at how people and traffic move around the inner city and consider options for change in that respect will be linked up with other proposals for future improvements.
"I would encourage local business people who are struggling or need help or advice to connect with Rotorua Economic Development (RED) to help them navigate their way through."
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