Proposals buoy precinct retailers

Proposed projects in Newmarket are in their early stages but retailers are cautiously optimistic.

Newmarket projects put on ice moving closer to reality.

The promise of movement on proposed retail developments in Newmarket over the next five years represents "a light at the end of the tunnel" for retailers in the precinct, says Chris Beasleigh, national director of retail sales and leasing for Jones Lang LaSalle.

"In recent years being a retailer in Auckland has been a struggle," Beasleigh says. "Nowhere has this been more apparent than in Newmarket where retailers have been working harder on thin margins in order to survive and pay the big rents demanded - some of which equate to the highest suburban rents in the country."

He says in addition to several years of "low levels of activity and elevated vacancy", Newmarket retailers have faced increased competition from the Sylvia Park shopping centre at Mt Wellington with its 200 stores and 4000 car parks.

"After becoming a leading retail location over the 1990s and early 2000s, Newmarket saw retailer confidence weaken followed by the ongoing uncertainty of new developments being proposed but not delivered," says Beasleigh. "Key among these was the Westfield 277 Broadway expansion, the development of the Newmarket Viaduct and proposed schemes at the former Lion Breweries' site.

"However, it appears these developments are now moving much closer to reality.

"Although the proposed extension of the Westfield Mall, which will sit across Mortimer Pass from the existing 277 is not finalised, retailers are beginning to accept that it will happen even if the time frame is closer to 2017 rather than 2013. This redevelopment of the former Levene Extreme site, which is home to a Farmers department store and car parking, will help boost the southern end of the Broadway strip."

Justin Lynch, Westfield director for New Zealand, has said the proposed new Westfield Mall will combine the existing shopping centre at 277 Broadway with a proposed development of 309 Broadway with an additional 95 new shops, a 9500sq m Farmers store, three large-format high-volume stores, a 2100sq m gymnasium and 1400 extra car parks.

A multiplex cinema will be built and a two-level pedestrian air bridge will span Mortimer Pass, allowing shoppers access from the existing building to the new one.

Beasleigh says another boost for Newmarket retailers is Auckland University. "The university, which has become New Zealand's largest real estate developer with a $1 billion 10-year order book under way, will also be developing along Carlton Gore Rd," says Beasleigh. "The university's move will rejuvenate the northeastern end of Newmarket, bringing increased foot traffic to the area and much needed infrastructural and traffic improvements."

Pritesh Ishvarlal, retail leasing and sales broker with Jones Lang LaSalle, says the proposed developments are in their early stages but they are making Newmarket retailers cautiously optimistic.

"Over the course of the last year we have worked with successful brands like I Love Ugly which can see Newmarket's potential over the course of the next few years. The store has moved into the new Osborne Str development which features high-end fashion shops and an art gallery that has transformed this corner of Newmarket and helped to attract new tenants to the area.

"Other deals we have brokered include international brands Sweet Years which has moved into 142 Broadway and a Clear Skin Care Clinic in Shop 2 at 21 Remuera Rd."

Ishvarlal says all the recent tenancies have opted to take on two to three year leases rather than the traditional nine to ten year leases previously seen.

Beasleigh says that although the retail environment still remains tough nationally the future university development will provide a ready-made catchment of customers for the retailers of Newmarket.

"This, alongside the extension of the Westfield Mall, will create a sound mix of retail and education quarters as well as providing the opportunity for other facilities such as good quality accommodation and lecture and conference amenities. Retailers do recognise the window of opportunity but there will be some time to wait until its realisation comes to fruition."