Demand is outstripping supply for large format retail space in the thriving North Canterbury town of Rangiora.
The latest entrants poised to move into the area are Bargain Chemist and CityFitness who are each leasing large tenancies in the former Bunnings building on the corner of Queen and Victoria Streets.
The building was recently sold to local investor Cantcomm Ltd by Nick Doig and Noel Gilchrist of Colliers in a short off-market campaign that attracted four offers.
The property covers 4,500sq m across multiple titles. This includes the main building, a further outdoor area of 454sq m, and a further 606sq m available in a neighbouring building.
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Bargain Chemist has taken 833sq m and CityFitness 1,078sq m. The area will be further enhanced by the planned upgrade of the public car park immediately adjacent to the building that will improve links to the Farmers department store and High Street retail precinct.
“The buyer, Cantcomm Ltd, is undertaking a full refurbishment, including a seismic upgrade and reconfiguration into the two tenancies,” Doig says.
“With very limited vacancy for medium to large format retailers, there’s still unsatisfied demand for space in this ever-expanding catchment.”
Cantcomm’s Harry van Tongeren says he is always looking for opportunities with strong potential.
“Rangiora has a significant commercial sector and retail is in a strong growth mode. The property we bought provided opportunities to target both the retail and commercial sectors,” van Tongeren says.
“As a property of size and scale, the issue was to look at a cost-effective repair strategy and a revised presentation to the marketplace. It was a solid opportunity to add our skill set to.”
Bargain Chemist Director Peter Shenoda says the new store will not only meet the community’s healthcare needs but also create local jobs and contribute to the economic development of the region.
“We see Rangiora as an excellent opportunity to strengthen our commitment to enhancing the health and wellbeing of New Zealanders. The area's warm and welcoming community aligns with our core values, and we look forward to becoming an integral part of Rangiora’s healthcare landscape.”
Bargain Chemist’s new store is set to open in the middle of next year.
Earlier this year, Doig and Gilchrist sold the 700sq m BNZ site on the corner of High and Ashley Streets in Rangiora for $2.075 million, which is being developed into a retail and office complex.
Gilchrist says Rangiora remains the preferred option for small and large retailers looking to establish themselves in North Canterbury. As the population continues to grow, new residential developments are coming onstream with building now underway in the new Rangiora Business Hub.
The latest Business Opinion Survey for North Canterbury reveals that confidence has bounced back to positive territory. Enterprise North Canterbury reports local businesses are more confident about their own prospects over the next six months and are expecting to see an increase in profit.
“The confidence that businesses have is showing that despite the current difficult conditions, businesses overall are predicting that sales levels and profitability will increase over the next six months,” the survey says.
Rising costs are expected to slow, and employers are increasing their staffing levels.
“We have noted that businesses are holding off on discretionary spending. This is reflected in delayed building in some of the new commercial areas around the region. We expect some jumps in activity next year when the economy is expected to improve and people catch up on previously planned activity,” the survey says.
- Supplied by Colliers
