Shop vacancies take a tumble | Rotorua News | Local News in Rotorua

Vacant shopfronts in Rotorua's central business district have dropped significantly for the first time in almost three years.

Since May 2009, The Daily Post has been surveying the number of empty retail premises in the 10 blocks bordered by Fenton, Arawa, Amohia and Amohau Streets. The latest survey, conducted on Tuesday, showed vacancies had dropped back to 56 after peaking at 64 recorded in July last year.

Commercial real estate agents spoken to by The Daily Post said this reflected the increased activity and inquiry levels they have seen since the Rugby World Cup and general election came to an end.

At 14, Hinemoa St had the highest number of empty storefronts, but it recorded its lowest figure since May 2009, when it had just eight. It peaked at 20 empty shops in June 2010 and July 2011. Two of the street-front retail units under the Royal Court Apartments are now occupied, plus two on Pukuatua St. None of the units inside the development showed any signs of occupation.

Amohau St showed improvement with just two vacancies, having recorded four or five for the past two years and Pukuatua St also dropped from nine vacancies in July 2011 to six this week.

Fenton St was the only area to record a significant increase in empty storefronts. After recording 12 in May 2009, Fenton St dropped back to six or seven in 2010 and 2011, before jumping back up to 11 in the latest survey.

NAI Harcourt's Paul Sanford said inquiry levels in the central business district had increased since the November election and businesses had a greater degree of certainty.

"New companies are coming into Rotorua and there was a flurry of leasing done prior to Christmas."

While he said inquiry levels were usually up at this time of year, there had been a lot more than previous months and he hoped this interest would be converted into new tenancies in the new year.

"It's all very positive and exciting stuff."

McDowell Professionals' John Taylor agreed inquiries were up, but said converting those into leases was still not easy.

"People are really doing their homework and really negotiating - which they should. They are still pretty cautious and do not rush into making decisions."

He said it was good to see some positive action happening.

Bayley's Bill Wilson said inquiries were still coming through during the Christmas break, but agreed deals were not being done in a hurry. He is also seeing new companies looking to enter the Rotorua retail market.

"Recent results show retail has been up around the country over Christmas and that will encourage retailers to sit up and take notice and maybe relook at Rotorua."

He said the city was not on the agenda for many national chains while times were tough, but now there were more positive signs on the horizon there could well be more interest from outside Rotorua.