New developments to brighten CBD gloom
Vacancies are mounting on Nelson’s Bridge St as infrastructure works and economic pressures take their toll.
However, property experts say better days are ahead with new developments planned for the street and the surrounding central business district.
Earlier this month, a Nelson woman posted photos on social media of more than 30 vacant buildings or premises around Nelson’s CBD.
GBU Realty owner Grant Unsworth said “holes” were opening up on Bridge St after suffering a double whammy of infrastructure works and a tough operating environment.
While retailers were facing competition from online shopping, and winter periods could be challenging, positive developments were coming and the overall impact of the infrastructure works would allow other developments to take place, he said.
There was only one vacancy left in central Trafalgar St – the former Body Shop site – and discussions were ongoing around that, Unsworth said.
There were larger spaces available with the old Briscoes space and the Bed Bath and Beyond tenancy, but they had been available for some time.
He said the problem with those spaces was the Saturday morning market, which “disrupted” the retail opportunity.
Bayleys commercial sales and leasing for top of the south Gill Ireland said two large developments were in the process of getting underway, one at the old bus terminal on Bridge St, the other next to the Royal Hotel, at the intersection of Collingwood and Bridge streets.
“Two years from here, Bridge St is going to be pretty awesome,” she said.
“You can feel it’s just bubbling. It’s starting to come, but it’s a process. You can’t just snap your fingers and it’s there.”
Ireland said the street had much to look forward to, with two brand-new developments on either end and the Bridge to Better infrastructure project.
At present, Bridge St was “awful”, she said.
“It’s a lot of pain, but there’s no other option. For us to grow, you’ve got to do the development. It is sad, and it’s horrible, and it’s painful, but there’s no other option, unless we’re just going to stagnate and die.”
Ireland said some of the city’s older buildings needed to be redeveloped or demolished, rather than “sitting on them” and letting them deteriorate.
Scott Construction managing director Justin Candish was doing “amazing” things with Morrison Square and what Tinline did with Westpac was also exceptional, she said.
“It regenerates the city, people want to be here, want to live here, want to visit, rather than walking around a town that’s got dilapidated buildings.”
Currently, rents downtown varied from $205,000 per annum for 1126m² former Bed Bath and Beyond Store, to $71,000 for the former Body Shop on Nelson’s “Golden Mile” between Bridge St and Hardy St.
Off the main drag, the 110m² site at 255 Hardy St is advertised as costing $27,000 annually.
Colliers sales and leasing broker Brad Allam said retail was currently a mixed picture, with some operators under pressure, but others performing well and actively looking for opportunities.
Vacancy was probably “a touch” higher than what was typical, he said.
“Bridge St has had a disproportionate impact in this regard. If you exclude that factor, vacancy levels across the wider CBD feel only marginally above normal.”
Road closures had been challenging for businesses, and particularly for retailers.
“There’s no hiding from that and we are still in the thick of it,” Allam said.
“That said, there is an argument that some level of disruption is necessary to reshape and improve the city over time.”
Allam wouldn’t comment on the timing or process of the works, but said the impact on businesses in the short term shouldn’t be understated.
With slightly elevated vacancy, landlords were being realistic on both rental expectations and lease structures to secure and retain tenants, he said.
Rents were relatively stable, but there was more negotiation in the market than had been seen in previous years.
Online retail, particularly from offshore operators, had created some headwinds, Allam said, but a number of local retailers continued to perform strongly.
Recent relocations to Trafalgar St by brands like Just Jeans, The Rock Box, Flo & Frankie, Merric and Akbabas highlighted the commitment to the city centre, as they could have gone elsewhere, he said.
New retailers such as PB Tech, Grasshopper, Canterbury Pet Foods and Oakleys were also establishing themselves in Nelson.
Like Ireland, Allam was excited about developments such as Morrison Square.
“It’s clearly a superb vision, and it’s great to see locals taking on a project of this scale and delivering a precinct that will bring new energy and vibrancy across hospitality, retail and office in the CBD.”
By Catherine Hubbard, Nelson Mail
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