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The demand for industrial premises in the Rangiora area continues to grow.
Only four lots remain unsold in the 35-lot Rangiora Business Hub, with titles issued for 31 freehold industrial lots already sold.
The hub was developed by commercial real estate funds manager, Mainland Capital, and is located on the corner of Fernside and Todds Roads on the outskirts of Rangiora.
Colliers Christchurch’s director of industrial, Sam Staite, says industrial space continues to be scarce around Canterbury.
He says the success of the Rangiora Business Hub highlights both the strength of the Waimakariri economy and how the development is meeting a demand for land for outright purchase.
The unencumbered lots have no build ties or lease-only provisions which means buyers have full control from day one.
“Local and regional companies have chosen to become owner-occupiers in the subdivision or take up tenancies to future-proof their operations,” he says.
One example is Stor.Me Rangiora, a premium, secure self-storage facility on Kingsford Smith Rd.
The facility experienced overwhelming demand during the first stage launch of 120 premium units – reaching over 90% occupancy within months of opening.
In April, a second building was completed, providing a further 150 units with equally high demand.
Work begins on a third building on the property this month, providing a further 130 units.
Campbell Youngman from Mainland Capital says Stor.Me Rangiora was the first development for the firm’s Mainland Capital Storage Fund. It now has three large-scale storage facilities across the country.
“We are tracking a year ahead of our construction schedule, which is a positive indication of the urban growth and population boom in Rangiora,” he says.
Another new development in the hub is the Hallmark Group expansion. The specialist door manufacturer outgrew its premises on Flaxton Road and bought land in the adjacent hub to facilitate a 4341sq m extension.
Waimakariri’s population is projected to hit 76,600 by 2033, according to Enterprise North Canterbury research. For Rangiora, that translates to nearly 3000 new homes.
The practical reality is that people prefer to live close to work.
Around 30 percent of workers make the half-hour commute to Christchurch, but 72% of those people stated in the latest Waimakariri Community Survey that they would prefer to work locally.
Last year the number of businesses in the district rose 1.7% to number 7458, with demand for a local base expected to be constant.
“The Rangiora Business Hub’s occupied status is evidence that industrial firms often choose to own rather than rent their premises,” Mr Staite says.
“Seeking certainty and security over their environment, owners are drawn to the long-term benefits of building equity and the freedom to modify their space and protect themselves against rising rents.
“Commercial property also offers the potential for capital gain, tax considerations and a tangible retirement asset while conveying to customers a sense of permanence and credibility that a leased premises may not always show,” he says
The Rangiora Business Hub is on the western edge of the town, close to bulk retail area and main transport routes.