A $100 million-plus business park which also includes a high-density residential housing precinct will add another dimension to Pāpāmoa as its population continues to surge.
Companies that were ''starved'' for land have been eyeing up the suburb, which is expected to accommodate 47 per cent of new Tauranga residents by 2028.
Pāpāmoa Junction is set on 6ha at Parton Rd and 29 of the 43 sites available are already going under contract.
Carrus managing director Scott Adams said it bought the site more than 10 years ago and had been looking for the right opportunity to develop the land.
"We now feel the market is ready for a more intensive mixed-use residential/commercial development to take advantage of the site's unique high profile location.
"Pāpāmoa Junction will be first and foremost a business park, but with approximately 50 planned residential dwellings facing north over the Wairakei Reserve."
He said the retail value of the land will be about $40m but the finished development would be worth well over $100m.
Adams also imagined this size development would create at least 200 to 300 new jobs.
"The Western Bay is suffering the worst land supply crisis in its history and this development will only meet a small portion of the demand for land in our region."
Earthworks at Pāpāmoa Junction had started and the first titles were expected to be released in October 2021.
Colliers International Tauranga managing director Simon Clark said demand for the subdivision had been extremely high.
"We already have people lining up for particular sections and have a great mix of commercial users already confirmed. This will be quite significant for Pāpāmoa as we haven't seen a commercial subdivision released to the market for 10 to 15 years."
The development would have internal trade supply, showrooms and light industry with offices, while the periphery had the potential to accommodate more intensive commercial users such as medical, hospitality, convenience and bulk retail as well as office buildings.
"You can have any number of combinations of office, warehouse, showroom and that type of thing."
Meanwhile, on the northern side overlooking the Wairakei Reserve would be a medium- to high-density residential housing precinct.
''So it will be a comprehensive mixed-use development. There will be a substantial terraced housing development and some of the commercial buildings could also have apartments above."
Barrett Homes business development manager Mark Day said the firm was planning a residential development and a commercial building at Pāpāmoa Junction.
"We are looking at about 44 to 47 townhouses as well as a commercial building."
The site had high visibility and was in a great location, Day said.
"It is going to be one of the best commercial corners in Pāpāmoa and at some point everyone is going to have to drive past it. The mix of tenants as well as being close to schools and a straight walk to the beach are other bonuses."
Tauranga Chamber of Commerce chief executive Matt Cowley said Pāpāmoa was a growing community, which was becoming ever more self-sufficient.
Traffic and lifestyle were the main reasons why Pāpāmoa was becoming more attractive for businesses.
"Some are able to work close to home and close to clients who want to avoid the hustles of going into central Tauranga."
Priority One chief executive Nigel Tutt said there was a shortage of available land across the city.
"So it's great to see a development of this type move ahead. Carrus is a proven performer and will be well placed to meet residential and commercial sector demands in this mixed-use development."
Mount Maunganui/Pāpāmoa ward councillor Steve Morris said the development would be good for the construction sector.
At the moment, operations in the commercial sector were also insufficient for a suburb of 30,000, he said.
"You know, to get anything done sometimes you actually have to leave the suburb. So there is an opportunity there, depending on what the offering and mix is, to improve the commercial offering in Pāpāmoa."
But Morris was still concerned about infrastructure, and while growth created employment it was not keeping up with the increasing population.
Papamoa Unlimited Event & Marketing manager Julia Manktelow said it was a hugely exciting time for the Pāpāmoa area as "we experience significant growth both in the residential and commercial sectors".
"[It is a] clear reflection of the ever-growing interest in our beautiful backyard and the wonderful lifestyle that our little beach town has to offer. We have watched our businesses pivot through this challenging year, which has been backed by phenomenal support from the local market."
Tauranga City Council planning projects team leader Campbell Larking said in Pāpāmoa, the council supports the development and delivery of commercial and residential growth through its long-term planning and delivery of infrastructure.
"Specifically, council has been working with landowners and developers in the Pāpāmoa East area for over 15 years, which has included the rezoning of commercial and residential land for new growth, such as within the Wairakei Urban Growth Area. ''
The council was also progressing a range of projects on its own, and also through the SmartGrowth partnership and as part of the Urban Form and Transport Initiative, he said.