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Home / Bay of Plenty Times

Tauranga rich in vacant industrial land

John Cousins
By John Cousins
Senior reporter, Bay of Plenty Times·Bay of Plenty Times·
11 Jun, 2015 06:00 AM5 mins to read

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Bob Clarkson with his latest big build at Tauriko to accommodate Tauranga engineering company Gamminco. Photo / Andrew Warner

Bob Clarkson with his latest big build at Tauriko to accommodate Tauranga engineering company Gamminco. Photo / Andrew Warner

Tauranga has enough vacant industrial land to meet demand for another 39 years based on the average uptake of 10ha a year.

City council strategic planner Ayv Greenway stressed it was a theoretical figure that could be influenced by the pace of development, non-industrial uses of industrial land and the construction of new roads.

His report said that nearly all the 406ha was in Tauriko, Te Maunga and Papamoa's Wairakei subdivision.

Mr Greenway told councillors this week that not all the land was ready for new buildings and awaited construction of services and earthworks.

Nearly a quarter of the industrial-zoned land at Wairakei could be swallowed up by housing following the council's acceptance of developers' applications under the Government's Special Housing Areas legislation.

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Mr Greenway's report also highlighted how the construction of roads in greenfield urban growth areas would reduce the area of industrial-zoned land.

There was little or no vacant land in established industrial areas although he said there was potential for a change of use or for sites to be used more intensively. He said although uptake had been relatively low, averaging 4.5ha a year for the past six years, the release of significant tracts of land at Tauriko and Wairakei and the recovery from the recession was expected to result in an increasing number of developments.

His report showed not enough industrial land was being opened up across the whole of the Western Bay to meet targets set by the growth management plan SmartGrowth. In 2007 SmartGrowth called for an additional 1000ha to meet demand out to 2051.

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"Around 255ha has since been zoned in Tauriko in the west and 410ha in the east," he said.

The eastern side of the Western Bay included 100ha at Wairakei, with the rest in Te Puke and Rangiuru.

Mayor Stuart Crosby said the amount of land ready to go and the size of the lots that exceeded 10,000sq/m were both important.

A Bayleys research report also showed plenty of room for industrial growth with industrial property occupancy levels in Tauranga sitting at an overall vacancy rate of 13.5 per cent.

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Bayleys research national manager Ian Little said vacancy rates varied across the city with Tauriko at 0.8 per cent and Mount Maunganui at 17.3 per cent.

"Tauranga has an abundance of available industrial-zoned land in and around the city totaling more than 650ha. This allows for significant growth opportunities going forward but also puts a natural cap on rental growth - as any occupier demand is quickly satisfied with supply," Mr Little said.

"The Tauriko Business Estate in particular has seen an increase in activity over the past 12 months - with a number of new projects either under way or recently completed in stage two of the estate."

Clarkson claims Tauranga lacking enough land for industrial builds

Tauranga's king of industrial development Bob Clarkson has five new buildings worth $7.5 million signed up and ready to go in the Tauriko Business Estate.

Mr Clarkson, 76, announced his new projects to a meeting of the council this week that considered a report into the city's industrial land.

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He said the key thing with industrial land was to have it ready and presentable to buyers whereas land available in Tauranga still looked pretty rough.

"It can't be presented to be sold until it is ready and with grass on it."

Mr Clarkson said there was no land available in Tauranga for big builds. He was in the final stages of a $4.5 million industrial building in Tauriko for Gamminco, a precision specialist machining company shifting from Maleme St.

The 5400sq m development joins two other buildings that were the same size but had division walls inside to allow back-to-back tenants.

Mr Clarkson told the Bay of Plenty Times that his five new projects involved much smaller buildings ranging in size from 1000sq m to 1500sq m and worth about $1.5 million each.

Although he was unable to disclose the names of the businesses, he said the tenants would include an engineering shop, an industrial components warehouse and retail outlet, and a steel cutting plant.

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Councillors heard that most of the new buildings in Tauriko were for businesses shifting from other parts of the city because they needed the extra space and better designed buildings to cope with growth.

Mr Clarkson said most of his tenants were doubling the size of their premises.

He was frustrated at the lack of competition for industrial land and was unhappy that the 24ha block of high-grade but rural-zoned land he owned behind the Tauriko Service Station was still not on the timetable for industrial development.

"You would see more action if they approved my land. We have got to attract more manufacturers here and we are not doing that because we have not got the land."
It reached the stage two years ago where he was forced to lay off half of his staff.

Works needed to secure Tauranga's industrial future Tauriko Business Estate

* Future stages need completion of services
* Wairakei: Extend Te Okuroa Drive and complete other key infrastructure
* Te Maunga: Low-lying areas need substantial earthworks

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Status of Tauranga's industrial zoned land

* Occupied: 438ha (49 per cent)
* Vacant: 406ha (45per cent)
* Vacant but not available: 52ha (6 per cent)

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