Where To From Here?

2024 continues to amble along into the second quarter.

Sales in 2023 were at the lowest dollar value since 2015. Prospects for this year and into 2025 are improving as interest rates stabilise and business confidence in some sectors particularly begin to grow.

Commercial lease rates have tended to remain steady, but negotiation within the range has become more common, with determining factors being location, building quality and length of vacancy. The retail sector has been hardest hit with low confidence in the immediate future as the discretionary dollar spend continues to decline with a decision either not to spend or looking at cheaper options.

Interest in purchasing an existing business has shown a slight increase in the last 6-9 months and appears to be driven by a mix of increased immigration and those who have been or are going through job restructures and are looking at the opportunity to buy an income.

On the political front we are waiting to see what the effect of the proposed and implemented changes will bring and the 2024 budget due this week may provide a catalyst to where government funding will be spent and what projects will be actioned so departments can make commitments. At the moment everything and everybody seems to be in a wait and see mode.

As we head into winter, maybe instead of snuggling down, we look at this time as being an opportunity to make that change, challenge our boundaries and be part of the start of the change instead of seeing it happening later on and trying to catch the train as it is leaving.

We recently completed a successful business sale of Santeez Café. We wish to welcome the purchasers Christian and Roslyn to Kerikeri and are looking forward to the upcoming opening of their restaurant, Kai Mata.

Drop into the office to have a chat about what is happening in our local commercial market.