The Ahuriri suburb increasingly offers a "vibrancy alternative" to Napier city-centre offices and Havelock North is having similar effects for Hastings, a new report says.

The latest commercial property report for Hawke's Bay from independent property strategists Turley & Co, which provides an overview of the industrial, retail and office commercial property sectors over the second half of 2017, said the vibrancy offered by mixed-use facilities in Ahuriri and Havelock North was a key point behind the development of both suburbs.

"The [Ahuriri] quayside suburb is attracting government agencies and various professional services, and has over decades progressively transformed from an inner-harbour industrial heartland.

"The vibrancy of mixed use including popular bars, restaurants and apartments, has attracted Napier CBD tenants. A similar dynamic is occurring for Havelock North, with competitive effects for Hastings' CBD office sector and city centre."


The Hawke's Bay's office sector has seen "considerable development" over the past three to four years, the report said.

"Most market activity is generated by tenants seeking to upgrade, or is led by seismic considerations. Market reshuffling accounts for most activity."

Overall Hawke's Bay demand for office space increased in 2017, but was still in oversupply.

Throughout Hawke's Bay industrial land remained tightly held but some developments had still come to the market.

The retail property market occupancy remained "positive".

"Turley & Co has recorded considerable tenant reshuffling for Hawke's Bay mainstreet retail locations, with tenants jostling for better positioning."

Hawke's Bay Chamber of Commerce chief executive Wayne Walford said the number of developments around the region showed increased business confidence.

"There seems to be a real energy around Napier - especially Ahuriri, where new businesses are popping up all the time. One business closes and another takes the space and starts operating very quickly.

"We continue to receive calls from out of town for the best areas to set up businesses in Napier and across the Bay.

"Leasehold land in Napier is still proving to be a barrier to business development so currently we are seeing mixed energy from business owners in Napier."