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Commercial builds in Tauranga remain strong despite the economic downturn, with nearly $444 million in building consents issued in 2024.
Tauranga City Council building services manager Steve Pearce said there had been “significant development” in the suburb of Tauriko and the CBD.
Business-focused construction was very strong, but the council wasn’t seeing the same volume of residential builds, Pearce said.
‘We’ve got past the dip’
Residential consents had more than halved from 2180 consents in the peak in 2021 to 1067 consents in 2024.
Pearce said 2021 was Tauranga’s highest year on record for residential consents, but applications began to decrease late that year as interest rates increased.
There were early signs residential applications were increasing since the interest rate began to drop in August 2024.
“We are seeing an increase and so it feels like we’ve got past the dip.”
Investment in the Wetsern Bay of Plenty's horticultural sector was strong in 2024. Photo / Mead Norton
Western Bay of Plenty
Trends in neighbouring Western Bay of Plenty were similar, with 77 commercial building consents valued at $56.7m and 608 residential consents valued at $164.1m issued in 2024, council records show.
In 2023, 78 commercial consents valued at $42m and 824 residential consents worth $208.9m were issued.
The number of residential consents has dropped from 1006 issued in 2020, while commercial has increased since 2020, when 68 were issued.
Priority One chief executive Nigel Tutt said it was “really pleasing” commercial consents had managed to hold up “pretty well” when residential consenting had looked “pretty bleak”.
The Western Bay of Plenty still had a strong economy, so investment was needed and the kiwifruit industry was a good example.
An artist's impression of what Te Manawataki o Te Papa, Tauranga's future civic precinct, will look like. Photo / Supplied
What’s being built?
The third-highest value commercial consent for Tauranga in 2024 was a $21m cool store for Mount Pack and Cool in Tauriko.
Three of the Western Bay of Plenty District Council’s top five consents by value for 2024 were for cool stores.
In Te Puke, EastPak had a $6.5m consent for a controlled atmosphere store, DMS Progrowers had a $6m consent for four cool stores and Apata Group’s $1.8m consent was for two cool stores in Pongakawa.
Tutt said Tauranga was a desirable place to be so private developers were keen to invest in the city centre.
The developments were not dependent on council projects, but the council needed to create the right environment for investment.
Te Manawataki o Te Papa and other council investments would help with the retail resurgence, he said.
“Together it’s actually really awesome.”
Artists' impression of Craigs Investment Partners House in central Tauranga. Image / Supplied
The largest value commercial consent for 2024 was for Craigs Investment Partners House at the corner of The Strand and Devonport Rd.
The $34.5m consent was for stage three of the seven-storey office building, which will have hospitality space on the ground floor.
A spokesman for the developer said the building acknowledged its “stunning location” and would have views of the harbour, Mauao and back toward the Kaimai Range.
Groundworks were complete and work on the superstructure above ground would start soon, he said.
The project faced several hurdles over the years — demolition of the former Westpac Building revealed widespread asbestos and its foundations had to be removed to create a basement for the new build, the spokesman said.
Ground conditions and proximity to the harbour meant the building needed 40- to 50m-deep concrete piles for the foundations with water continuously removed during construction.
There were also the challenges for the investors with supply issues, inflation and rapidly rising interest rates and, he said.
The project with an estimated cost of $80m is due for completion in 2026.
Artists' impression of the Northern Quarter Development that will be ready for tenants in June. Photo / Supplied
Further down, at 45 The Strand, the Northern Quarter office and hospitality development is taking shape. A $24.6m consent for Stage 1b was issued last year.
Developer JWL Investments general manager Chris Morris said they aimed to finish the four-storey building by the end of May. Internal fitout would then start with tenants moving in from the end of June.
The foundation tenant would be law firm Holland Beckett.
The vision for the project was to draw on the history of the site and the various forms of commerce had taken place there over the years, Morris said.
“It’s intended to look like an old wharf or docklands building but putting a 21st century spin on it and bringing new business into town.”
