The overall vacancy rate for industrial property dropped slightly across Tauranga and Mount Maunganui in 2025, while the headline office and retail figures were largely unchanged, according to the latest vacancy survey from Colliers Tauranga.
The numbers have been calculated following research completed in December and the vacancy rate for industrial space across the Mount Maunganui, Greerton, Judea, and Tauriko hubs show a combined vacancy rate of 3.51 per cent, down from the 3.92 per cent recorded in December 2024.
The combined vacancy rate for office and retail space across Tauranga and Mount Maunganui was 10.49 per cent, up ever so slightly from the 10.41 per cent noted in December 2024.
Breaking down the retail and office sectors, there was a decrease in vacancy in Tauranga CBD retail (15.6 per cent to 13.79 per cent) and a small jump in Mount Maunganui CBD retail that went from no vacant space to 2.43 per cent.
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This was due to one large listing (the former movie theatre) and is not reflective of the high demand for smaller spaces on the main street.
The drop in retail vacancy for the Tauranga CBD coincides with the development of new office buildings and civic facilities such as the under-construction library and courthouse.
These developments should add further foot traffic in the city this year.
In the Tauriko industrial area, Rachel Emerson, Industrial & Retail Broker at Colliers Tauranga, says muted buyer sentiment, limited tenant enquiry, and soft design-build activity contributed to a quiet year across the precinct.
"Vacancy in the Tauriko industrial hub grew from 4.04 per cent in December 2024 to 5.55 per cent a year later. This spike has been driven by softening demand for smaller premises with units measuring less than 1,000sq m drawing less interest," Emerson says.
"There are only two warehouses larger than 1,000sq m that were available at the time of the survey, indicating there s a level of saturation in the small unit market rather than broad-based over-supply."
On the plus side, land values continue to perform strongly in Tauriko with the per square metre rate jumping from $756 to $864, reflecting the ongoing demand and limited supply for large sites.
The Mount Maunganui industrial hub, the largest by total floor area of the four precincts surveyed, remained in demand with a vacancy rate of 2.68 per cent, down slightly from the December 2024 figure of 3.03 per cent.
Simon Clark, Managing Director at Colliers Tauranga, says the area's proximity to the Tauranga Port and well-known national and international firms make it a prized location in Bay of Plenty.
"Developers showed little appetite for speculative projects in Tauranga and the Mount last year," Clark says. "But with economic conditions gradually improving amid a stable interest rate environment, we are seeing a noticeable increase in activity as we move into 2026."
- Supplied by Colliers
