A $5.4 million commercial property sale at Tauriko Business Estate has set a record for the city.
The sale comes as demand for land outstrips supply at the business estate.
Element IMF Limited director Bryce Donne said there were only 1.5 hectares on the market currently. The company had sold 48.5ha in the past 30 months.
''Some of the projects are finished and ready while other parts have been sold off the plans and are in future stages.''
There were significant challenges ahead including roading and infrastructure, so no timeline had been put on any future land release, he said.
''We are working hard on it, and it won't be far off, but we are not going to introduce a new marketing and sales plan until we have more certainty around those things.''
Although it was a struggle meeting demand, it was pleasing to note 75 per cent of the companies at Tauriko were existing or new Tauranga businesses that had expanded, he said.
''That is pretty cool as these businesses are employing people and doing great stuff, but they like to fly under the radar.''
Colliers International Tauranga managing director Simon Clark said the company had sold more than $90 million of land and buildings at Tauriko Business Estate in the past 12 months - double the previous year's sales.
Last Friday 47 Paerangi Pl fetched $5.4m at auction -selling for $1m more than it sold for in 2016. The price set a record for commercial property sales in the city.
The Wellington buyer missed out on the modern, industrial building that had long-term tenants when it first hit the market two years ago, Clark said.
Five other bidders drove the price to a record level, he said, which was ''very similar to what you would sell a prime Auckland property for''.
Land prices and tenanted investments had almost doubled over the past two to three years, he said.
''There is very little land available to purchase so this rarity is diving the price higher every month. This is the first time that returns for A grade industrial in the Bay of Plenty have dropped below 5 per cent, with the property eventually selling for a 4.85 per cent return.''
Returns were even lower than Auckland, so investors saw Tauranga as the next best alternative for affordable properties, he said.
Ray White Tauranga business owner and commercial and industrial specialist Philp Hunt said it had a waiting list of buyers for land and buildings at Tauriko.
''It's been sensational for Tauriko, and it's not surprising that records are being created.''
Ray White had sold out a development by Gartshores in Paraone Koikoi Dr with 14 units valued at more than $7m that would come on stream next month.
Meanwhile, it had already sold eight of the 14 Gargan Court Industrial Units that would start in November with completion planned for mid-2019.
There were no signs of commercial and industrial sales tapering off as there was a shortage of premises for sale and lease, he said.
Sales from its Tauranga office had jumped from more than $30m in 2017 to almost $60m in 2018, which ''has been exceptional'', he said.
Tauranga Chamber of Commerce chief executive Stan Gregec said it was fantastic to see strong demand for commercial buildings and quality office space.
"It shows that Tauriko is seen as a credible base for business operations."
Bayleys Tauranga branch manager Dickie Burman said Tauriko had catered for industrial businesses of all sizes and scale.
''With the Lakes residential development growing rapidly and The Tauranga Crossing retail development, more and more business will locate there.''
Priority One Business Partnership manager Mark Irving said it had assisted more than 100 companies to relocate, expand or start up their operations in the region.
''Ongoing commercial and industrial real estate growth helps provide further economic stability for the Western Bay of Plenty. Being able to see the growth in Tauriko reinforces to the entire community the forward movement of this region and showcases the huge steps the region is taking to facilitate planned and strategic growth.''