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Home / Northern Advocate

40 vacancies in 'sick' CBD

By Christine Allen, Business Editor
Northern Advocate·
2 Jan, 2015 05:00 PM4 mins to read

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THE SMALL GUYS: Ray Anderson says small stores open with a dream but leave because of the reality of doing business in Whangarei. PHOTO/JOHN STONE

THE SMALL GUYS: Ray Anderson says small stores open with a dream but leave because of the reality of doing business in Whangarei. PHOTO/JOHN STONE

Whangarei real estate agents are battling to find tenants for at least 40 empty buildings as expensive rents, earthquake retrofitting costs and decreasing foot traffic is driving business out of the city's "sick centre".

A Northern Advocate survey of the CBD precinct, including 10 streets and the Strand Arcade, found 40 empty buildings with Rathbone, Cameron and James Sts the worst affected areas.

The survey covered Vine, Bank (as far as Dent St), upper Dent St, Walton St, and Cameron (from Walton St only), Quality, Robert, Rathbone, James and John Sts.

Ross Blomfield, commercial and industrial sales specialist at Bayleys in Whangarei, said the overall foot traffic in the CBD was also down 22 per cent, according to the most recent Bayleys pedestrian count.

That survey recorded the number of people at 60 sites throughout the CBD and compared them to the 2007 figures.

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It was carried out by a number of valuers in March and counted shoppers.

Cameron and Rathbone Sts and The Strand were the top 10 busiest spots, while sites at John, Walton and James Sts were the least visited and in the bottom 10.

Mr Blomfield has since surveyed retailers about their concerns and was told the main challengers included menacing teenagers, a district council that actively encouraged business to big bulk retail development at Okara, and inadequate parking, including coin-operated parking machines, redundant as people don't carry cash.

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He said real estate agents in Whangarei agreed there were "valuable vacancies in good locations but just no demand".

"The town centre is a sick centre," he said.

Ray Anderson, of Wore and Piece on John St, said landlords needed to negotiate rents with tenants to keep the CBD alive.

Mr Anderson opened the streetwear store earlier this year and said "businesses come to the Whangarei's CBD with a dream but leave because of the reality".

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"Landlords need to start negotiating with tenants and get the rent down."

The CBD was saturated with beauty, clothing and food outlets, he said, many of which were Australian-owned stores.

He said his customers didn't want what was for sale at big box retailers, such as the new Kmart and The Warehouse.

"But you must have faith," he said.

Earthquake compliance costs on landlords were being passed down to tenants too.

There was a 33 per cent compliance requirement for most buildings in Whangarei, including Whangarei District Council-owned properties, but higher standards (67 per cent) for government buildings and banks.

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The chief executive of the Chamber of Commerce Northland, Tony Collins, said a trend of pop-up shops had emerged lately, especially at the Strand Arcade.

"They do generate activity and keep the street from looking dead but they're not the answer."

He said WDC's plans to revitalise the CBD through the extension of the Cameron St Mall along James St, being led by the 20/20 Inner City Revitalisation Committee, was a signal of support for the city.

The proposed extension of the pedestrianisation of the mall, east down Cameron St and half a block northwards along James St, plus the addition of two canopies, included a large transparent canopy above the Cameron and James St corners (costing $780,000) and a smaller canopy extending from Quality St and crossing Cameron St (costing $168,000).

Julie Tan, who owns World of Decor on Walton St, said Whangarei needed a point of difference and a proper hotel to get healthy.

"We have everything here that the Bay of Islands has but we don't have any campaign to promote it.

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"We need action to keep business in the city in this depressed economic climate," she added.

Street: Number of empty buildings:
Vine St -- 2
Bank St -- 4
Dent St -- 3
Walton St -- 3
Cameron St -- 5
Quality St -- 2
Robert St -- 3
Rathbone St -- 6
James St -- 5
John St -- 3
The Strand Arcade -- 4

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