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The motorway development, plus the urban expansion forecast in the Auckland Unitary Plan, will cement Warkworth’s position as a regional business hub, according to a business land report prepared as part of the Warkworth Structure Plan.
Auckland Council’s draft Warkworth Business Land Assessment, released in March, points to the need for a further 30 to 39ha for retail and service activities by 2043, and an additional 57 hectares for light industrial growth.
The report states that the newly live-zoned light industrial land, just north of Warkworth, which is currently vacant, will be sufficient to meet future demand for many years, and under the lowest demand scenario would be able to supply all of Warkworth’s light industrial needs out to 2043.
Commercial space is expected to more than double to 237,000 sqm.
Bayleys’ senior property research analyst, Goran Ujdur, told a networking event at Bayleys in Warkworth recently that there were already signs of this growth, with the total business units in Warkworth rising from just under 680 in 2011 to more than 780 in 2017.
“Land in the north is cheaper than Auckland, so that’s another reason to think this growth will continue,” he said.
“Only four per cent of the commercial property stock was unoccupied at the time of our maiden Warkworth commercial and industrial market vacancy survey.”
The survey will be updated annually.
Currently, most of Warkworth’s commercial and industrial space is industrial (58.4%), followed by retail (33.6%) and office (8%). Vacancies were tight in the industrial and office sectors, with retail having the highest vacancy rate of just over seven per cent, the bulk of which was located in the new and refurbished BNZ complex in Neville Street, as well as The Grange retail hub.
The survey showed that one-third of retail space was dominated by the food and beverage sector including supermarkets. The trend for national brands such as McDonalds, BP, Pizza Hut and Coffee Club to move to Warkworth is expected to continue.
Much of the existing office space in town is confined to first floor tenancies, generally above retail.
The Bayleys report says that historically, both the annual number and value of commercial and industrial property sales in Warkworth have been low – averaging around 10 sales a year with a total annual value of $18 million since 2010.
“Limited activity reflects the small size of the current market and the fact that much of the existing commercial and industrial property in Warkworth (and greenfield sites zoned for future urban) are owned by local investors and family trusts who seldom transact,” the report says.
“Going forward, we would expect investment activity to increase as population growth drives more new development and attracts an increasing number of outside investors.”
The Business Land Assessment report states that additional space for retail and commercial growth will be accommodated within the existing town centre, The Grange and out-of-centre locations, as well as including:
• Kowhai Falls, consented to 15,715sqm. If retail space does not materialise at Kowhai Falls, there would need to be provision for the consented amount of space to be made elsewhere in Warkworth in order to adequately meet future demand.
• Hudson Rd, where a Pak’n Save supermarket is proposed.
• The town centre fringe mixed use zone.
• Three new neighbourhood centres in new residential areas.
• Some additional out-of-centre locations to accommodate large warehouse-based businesses and trade retailers.
