- Auckland will also soon see doors open to its first Costco and Ikea
- Retail vacancies in Auckland were 1.7% at the end of 2021
- Most of the supply pipeline for retail consists of LFR
Auckland Airport has reached another construction milestone for its circa $200 million premium outlet shopping centre. Earthworks to prepare the building platform are now complete, with the next phase of construction activity for the shopping centre planned to begin in spring.
The centre was also recently named Mānawa Bay. The name reflects the airport’s location on the Māngere Peninsula and the historical and cultural significance of this area to tangata whenua. In te reo Māori, Mānawa means mangroves – a coastal plant species that have long featured in the waterways surrounding the land Auckland Airport sits on.
Auckland real estate
The shopping precinct is expected to open its doors in 2024, the centre will be one of several major retail properties to soon open its doors in Auckland.
CBRE New Zealand’s Executive Director, Head of Research, Zoltan Moricz told The Property Tribune that “Most of the confirmed supply pipeline is in the LFR centre category. New Zealand’s first Costco store is close to opening, IKEA has announced their first NZ store with expected completion by the end of 2024.”
Mr Moricz also noted “There is about 1.1 million sqm of retail centre stock in Auckland. This includes large and small shopping centres and LFR centres.” This excludes stand-alone LFR such as bunnings or stand-alone supermarkets.
Retail vacancies across Auckland were 1.7% at the end of last year, according to CBRE, with industrial hitting a long-term historic low of 0.5%. In Bayley’s Auckland 1H 2022 Industrial Market Update, the vacancy rate specifically for the airport was recorded at 2%.
Mr Moricz said, regarding industrial developments: “We expect more than 300,000 sqm completing in 2022 with a strong pipeline also for 2023.”
“The airport area (on both land owned by the Airport Company and also by others) has been one of the most dynamic areas for new development in the past decade. More than 500,000 sqm of industrial space sqm has been developed in past 10 years (of the 1.4 million sqm total current size).”
Zoltan Moricz, CBRE New Zealand Executive Director, Head of Research
In Bayley’s Auckland 1H 2022 Industrial Market Update, the vacancy rate specifically for the airport was recorded at 2%.
Design and centre details
The airport has partnered on the design with TRCB Architects, whom led the design of the DFO Perth outlet centre at Perth Airport.
The outlet shopping destination is on a 150,000 square metre site, and will deliver some 24,000 square metres of retail space. Currently, Mr Moricz said there are about 1.1 million square metres of retail centre stock in Auckland, with current retail centre vacancy across Auckland 1.7% as of the end of 2021.
Mānawa Bay will become New Zealand’s first ever premium purpose-built outlet centre, and follows from global trends:
“We know from overseas airport fashion outlet centres that these are a proven and resilient retail model and a go-to destination for shoppers. We can’t wait to open the doors in 2024,” said Mark Thomson, Auckland Airport’s General Manager Property and Commercial.
TRCB principal, architect Graham Taylor said:
“Premium outlet centres are growing as a distinct and popular retail category, particularly at airport locations. They’re no longer a place just to buy seconds or last season’s fashion goods at discount prices – they’ve evolved to a much more upmarket and immersive shopping experience.
“A number of international brands now have distinct strategies around outlet locations, recognising they have a broad and captive market to deliver new, contemporary fashion goods and accessories.”
