Commercial and industrial land developments set to expand city fringes

Developing greater Auckland’s commercial and industrial land potential will require a careful balance of quickly identifying and zoning suitable areas while simultaneously maintaining the rural amenities of lifestyle block land owners, according to one of the city’s senior property experts.

Commenting on Auckland Council’s Auckland Unleashed discussion blueprint, Bayleys Real Estate commercial general manager Chris Bayley said that while the region had considerable land capacity to expand, just where exactly that expansion should occur was reliant on several factors.

Chris Bayley said those determining factors included access to transport infrastructure, proximity to labour force accommodation, the efficiency of land use, appropriateness to existing businesses zonings, and alternative land-use options.

There was also the long-time controversial issue of environmental protection of ‘green belt’ lifestyle blocks. Auckland City’s future plan document highlights that the city will need up to an additional 780 hectares of business land over the next 30-40 years.

Mr Bayley said most of the areas suggested for expansion in the Auckland plan were viable, while the rational behind some options was questionable.

“Expansion of the current Westgate retail zone across the motorway on the current northern boundary for example makes sense – replicating the development of Constellation Drive/Albany basin zones on the North Shore, albeit with the Westgate centre being more focused on smaller stand-alone department store outlets,” he said.

“There’s an abundance of available land, and infrastructure construction is already well under way. This includes the soon-to-be-opened Hobsonville to Greenhithe dual carriageway linking the North Western motorway via a high speed route to the North Shore, thereby allowing access for both people and products.

“Similarly with Silverdale. There is considerable greenfield space immediately on both sides of State Highway One to ensure quick motorway access both north and southbound.

“Moving further east from Westgate, Whenuapai looks attractive for the construction of a logistics hub if the proposed second airport were to eventuate at the present air force base,” he said.

“Should Whenuapai Air Force Base be built into a residential suburb as is also mooted, I would however suggest a buffer of some sort between commercial and industrial use. With a considerable coastal access plain running down to the Upper Waitemata reaches, such a subdivision would lend itself to homes of a higher calibre – and the owners of such properties would not necessarily choose to live directly across the road from a panel-beaters yard or widget manufacturing factory.

“I’m somewhat less warm to the idea of expanding Kumeu to any great extent. This proposal would limit the council’s plan of maintaining rural landholding sizes. People on lifestyle blocks choose to live there for a reason – and the reason is that, on the whole, they are well away from commercial activity.”
South of the CBD, the Auckland Plan identifies Drury, Paerata and Glenbrook along the base of the Bombay Hills as potential commercial and industrial expansion zones. Mr Bayley said while Drury and Paerata made logical choices, he was somewhat puzzled by the thought of developing industrial land around Glenbrook.

“Paerata benefits from being surrounded by acres and acres of gentle rolling hillside paddocks which could be easily developed. Paerata is also only a short distance from Pukekohe, which is expanding at a phenomenal rate, and offers a northern growth opportunity to compliment the current spread of the town to the south.

“Paerata also has a rail line running through it and is a short distance so would therefore make sense as a manufacturing zoned hub where goods can be distributed via rail. And it is a short distance from two major motorway connections,” he said.

“Drury is already zoned for industrial usage and is ideally placed for easy motorway access. Development over say a 35-year period, underpinned by ongoing population growth throughout the Manukau and south/eastern suburb districts, could see a commercial merging with the existing Manukau City retail and office parks.”

However, the potential for Glenbrook required further explanation, Chris Bayley said.

“The steel mill is the only real industrial plant in that vicinity, and while it would make sense for the construction of heavy industry away from any large population base, New Zealand’s heavy industry plants such as the oil refinery, the aluminium smelter or the pulp and paper mill, are already well established and are capable of taking on board any spare capacity or expansion. Therefore why build at Glenbrook?”

Mr Bayley said the council’s Auckland-wide rationale of ‘protecting’ existing industrial zoned land from residential encroachment, while absolutely logical, was in fact contrary to what had been occurring over the past decade.

“For years now, fringe residential dwellings have been gaining council consents for conversion into professional services or home-business premises, such as medical centres, pre-school facilities, accountancy firms or legal practices.

“What were once clearly defined industrial/commercial and residential boundaries have now become grey ‘mixed use’ zones. Section sizes and building structures will, I believe, self-govern the availability of this type of expansion – so it’s unlikely home owners will suddenly find a bulk retail outlet springing up in the neighbouring ‘quarter acre’ property,” he said.

Comments and submissions on the Auckland Plan close on May 31.