On The Up: Tauranga’s Tauriko Business Estate still growing after 20 years

Next year marks two decades since the first earthworks for the commercial and industrial development, which already spans more than 200 hectares.

Land continues to be in hot demand – thanks in part to being less than 10km from New Zealand’s biggest port.

Nearly $70 million in building consents have been issued in the past year, including for the next phase of expansion at the Tauranga Crossing mall.

Estate director Bryce Donne said of the 43 hectares to be enabled in Stage 4A, almost 40% has been sold or leased to date.

An estimated 16,500 people will be employed at the estate once Stage 4 is fully occupied, he said.

Releasing more land for development

Donne said its focus was finishing bulk earthworks as soon as possible – estimated to be done by June 2026 – while improving landscaping, weed control, ponds and walkways, and finishing footpaths.

The rezoning of Stage 4 provided about 87 hectares of additional employment land, however, only about half could be released for use until infrastructure upgrades were done – most notably the four-lane expressway on SH29 between Omanawa bridge and Takitimu Drive.

Construction of a new roundabout at the SH29 and Redwood Lane intersection started in March 2024 and should be finished by late this year or early next.

Donne said this would provide the southern road connection to the business estate, reduce traffic through Tauriko Village, and enable the release of the next stage of industrial land at the business estate.

‘Huge win’

Pet pharmaceutical business Vetpost moved into the estate in August.

Co-owner and business development manager Greg Walker said it offered expansion opportunities “we just couldn’t get elsewhere in Tauranga”.

It moved from a 200sq m site in Gate Pā to a 600sq m estate site much closer to the New Zealand Post depot.

“It’s a greater efficiency – we now get pick-ups as late as 4.30pm so it allows us an extra sort of 40, 45 minutes of processing time each day.”

“We now fulfil about 99% of all orders the same day.”

Walker said quick delivery was a key point of difference for the online business, and orders had increased 50% since the move.

“It’s been a huge, huge win.”

He was looking to “ramp up the growth” this year and anticipated a 150% increase after acquiring a couple of businesses.

‘Massive changes’

Tauriko Sawmill managing director Mike Moores said the business had been in Gargan Rd for more than 30 years and had seen “massive changes”.

Pre-development, “it was all kiwifruit orchards”. Now, the town is ”completely surrounding us”.

Moore said the changes had been “great” for Tauranga: “You can live, work, play in this area.”

Development had benefited the family business, however, “we’ve had to sacrifice a lot of things to let the progress happen”, he said.

This included moving machinery while roads were being built and an “astronomical” increase in industrial rates, Moores said.

Tauranga Crossing grows

Tauranga City Council building services manager Steve Pearce said it was processing 17 building consents in the business estate – three for works at Tauranga Crossing, five for relocatable buildings that would be built in the estate then taken elsewhere, and nine in the wider business estate.

In the past year, $69,999,500 worth of consents had been issued for the business estate, he said.

Three valued at $27.5 million had been processed for Tauranga Crossing’s Stage 3 development.

Next year, Tauranga Crossing will hit a decade since it opened its doors as an outdoor town centre and dining precinct in 2016. It has since added big-box retail and an enclosed mall with dozens of shops and eateries, as well as a cinema.

Asked what shops would be opening and for other details about the next expansion, the shopping centre’s chief executive Lauren Riley said it was gearing up for the launch and to stay tuned for announcements.

Tauriko commercial and industrial sales consultant at Property Brokers Philip Hunt said lease activity in the business estate had been “very strong” this year and vacancies were “disappearing”.

He said the estate had been growing but not at the rate it used to – but that was changing.

High interest rates had made development for investment “not viable”.

“I’m seeing signs that it’s coming back ... I’m working with developers at the moment with plans of new property to take to the market, so that’s exciting.

“That hasn’t happened for probably 18 months to two years.”

Hunt said the business estate was still in “high” demand due to its ease of access and anything Port of Tauranga related.

Major manufacturing players

Fletcher Building said Winstone Wallboards’ new manufacturing Gib plant opened at the business estate in 2023.

The plant was capable of producing 50% more plasterboard than its previous site in Auckland.

“We have successfully achieved the key output, quality and productivity milestones we aimed for in our first couple of years of operation.”

The plant – which occupies the largest site in the business estate – “future-proofed” to allow for expansion if required “in years to come”.

Global electronics and manufacturing company Brother moved its headquarters to Tauriko in 2016.

Brother said it installed solar panels at the site in 2022, resulting in “significant emissions reduction” from purchased electricity for the first financial year.

The company said Scope 2 emissions – indirect greenhouse gas emissions from the generation of purchased energy in the form of electricity, heat or steam – reduced 52%, exceeding expectations.

4000 houses

Construction will start this month on a council upgrade to Taurikura Drive between SH36 and Whiore Ave to support the growth of the Tauriko area.

This will include reconfiguring Taurikura Drive to include more lanes, two new signalised intersections to improve traffic flow and safety, and new walking and cycling paths with a new signalised mid-block crossing.

Construction is expected to take about 12 months.

Last month, the council adopted changes to the City Plan to enable the development of housing at Tauriko West – eventually providing up to 4000 new homes.

In a media release, Mayor Mahé Drysdale said Tauriko West was ideally located close to jobs and shopping centres in the business estate and Tauranga Crossing, and was well-connected to the city centre.

“We’re creating the opportunity for a sustainable, thriving community where people can live, learn, work and play locally.”

Megan Wilson is a health and general news reporter for the Bay of Plenty Times and Rotorua Daily Post. She has been a journalist since 2021.