Retail in the Tauranga CBD showed a more positive trend as vacant space reduced from 10,685sq m to 9337sq m.
Tauranga’s CBD is showing signs of recovery, with fewer empty shops and rising retailer optimism.
The number of vacant retail spaces has increased across Tauranga and Mount Maunganui, with the exception of the CBD, according to Colliers Tauranga’s latest property market vacancy survey.
One CBD leader has seen an increase in businesses, creating a “sense of optimism” for the city centre as the “tide is starting to turn”.
According to the vacancy survey, there was a decrease in Tauranga CBD retail vacancies and a small jump in Mount Maunganui CBD retail vacancies.
The combined vacancy rate for office and retail space across Tauranga and Mount Maunganui was 10.49% in December last year, up from 10.41% in December 2024.
However, empty retail space in the Tauranga CBD showed a more positive trend, reducing from 10,685sq m to 9337sq m.
The retail vacancy rate in the CBD fell from 15.60% in 2024 to 13.79% in 2025.
Downtown Tauranga manager Genevieve Whiston said in the last four months she had seen an increase in businesses moving into the city centre and taking up vacancies.
“This is definitely a really positive sign and supports increased vibrancy here.”
Whitson said it looked and felt busier on the streets.
“I have personally noticed cafes and restaurants with more people and have actually had to queue in line a few times for coffee, whereas in the past I wouldn’t have.”
She said there was definitely a “sense of optimism” building in downtown Tauranga and the “tide is starting to turn”.
“There does seem to be renewed optimism as we see a number of city centre developments reaching completion, close to completion or well underway.
“It feels like hype and buzz are starting to build.”
In a statement to the Bay of Plenty Times, a Tauranga City Council spokesman said it recognised the vacancies sat within a “broader context” of economic pressure and change.
The spokesman reported city centre tenancies increased by nearly 2%.
“Momentum continues to build as revitalisation progresses through major civic, cultural, and commercial projects.”
Developments, including the new council administration building, waterfront upgrades such as the playground, and Te Manawataki o Te Papa, were intended to increase visitor numbers.
Te Manawataki o Te Papa, a $306 million Tauranga City Council civic precinct project, includes a civic whare, exhibition gallery and museum, new library and community hub in the CBD.
Council projections indicate that by early 2035, the civic precinct could have triple the number of people visiting the city centre, and this would average about 5500 people each day.
“This reflects strong confidence in the area’s future and provides encouraging evidence that leading organisations see lasting value in the city centre,” the spokesman said.
Foot traffic figures from the council showed in December 2025, there were 430,902 visitors compared with 318,979 in June 2025, an increase of about 35%.
Grey St and Elizabeth St had a rise in foot traffic in the same period, increasing from 74,540 in June to 75,275 in December, a 1% uplift.
“Early signs, including increased foot traffic around newly opened public spaces and regular events, point to a gradual recovery rather than an immediate shift,” the council spokesman said.
Mount Maunganui’s retail market shifted from full occupancy in 2024 to some vacancy in 2025.
According to Colliers, total vacant retail floor area increased from 28,450sq m to 29,169sq m, representing a 2.43% vacancy rate and three vacant tenancies.
This was due to one large listing, the former movie theatre, and did not reflect the high demand for smaller spaces on the main street.
In 2024, there had been no recorded vacant retail space.
Mount Mainstreet manager Jay Banner said historically, Mount Maunganui had an “extremely low” vacancy rate within its retail sector.
“We’re not a main street that’s full of a whole bunch of chain stores. We’re a main street that’s got a lot of boutique-y stores, and we draw crowds from all over New Zealand.”
He said retailers were more cautious about filling vacant spots.
“We do have some space about to become available, which may take longer than normal to fill.”
He said under “normal circumstances”, there would be huge demand to fill vacancies, which would be taken up immediately after a retailer left.
“I just think at the moment it’ll be hard, I guess we’ll see with these couple of tenancies that have come up.”
Banner said trade had slowed compared to other summers, but he believed it would bounce back.
“The bulk of revenue is done across December, January, February, and winter can get very quiet, and that’s the concern at the moment.”
Colliers Tauranga industrial and retail broker Rachel Emmerson said muted buyer sentiment, limited tenant inquiry, and soft design-build activity contributed to a quiet year.
“Tenants are cautious to commit to additional space, and businesses have been consolidating premises as opposed to growing their footprint.”
She said, however, there had been a “noticeable increase” in genuine tenant interest and commitment.
“With economic conditions gradually improving amid a stable interest rate environment, we are seeing a noticeable increase in activity as we move into 2026.”
Kaitlyn Morrell is a journalist for the Bay of Plenty Times and Rotorua Daily Post. She has lived in the region for several years and studied journalism at Massey University.