With limited business premises available in the Head Rd industrial area, companies are now looking to vacant sections like Mills Rd.

That is the view of Ray White real estate agent Russell Duggan who said commercial development was just starting to pick up on Rakau Rd, located off Mills Rd in Castlecliff.

He said 30 months ago a group of property investors, RA Wanganui, listed the three hectares of land as a 12 plot subdivision.

Five months ago Whanganui based export company Parkwood Doors bought one hectare and are "well underway with building developments".

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Mr Duggan said more businesses he couldn't name had bought plots there and only 1.3 hectares of land was still for sale.

"The beauty at the moment is there is very little land available in the Heads Rd area which is moving industrial traffic to other areas," Mr Duggan said.

Project manager of AT Wanganui, Mike Strang, said the investor group bought the land from the Whanganui District Council in 2008.

"It used to be a sawmill and I used to be the general manager there."

Mr Strang said it seemed that there was a general lack of the right type of buildings available in town.

"We are really pleased to see the increased interest here...once you have one or two buying the area suddenly becomes more attractive," Mr Strang said.

Mr Duggan said in the past people have been hesitant to buy land in the area due to the lack of security.

"There's isn't much else nearby and it's a bit out of the way but now interest is starting to pick up and I think that's because there is limited premises available around Heads Rd.

"It's good for Whanganui because it's new buildings, although not new businesses," Mr Duggan said.

A local franchise of Carrfields Primary Wool (CP Wool) are currently the only operating business on Rakau Rd and have been there for four years.

CP Wool store manager, David Grant, said it was positive to see business migrating to the area.

"It can only be a good thing and I think the area is a great environment to work in," Mr Grant said.