QUARTER TWO 2017 Building bridges Showcase foreshore project receives more accolades HOTEL HEAVEN Tourism demand drives building boom COMMERCIAL INVESTOR INCENTIVES Plenty of projects in the pipeline 2015 Site Safe awards winner 2014 Safeguard Winner Silver at NZ Design awards 100% NZ Made Commercial or Residential we cover it all. Call us to discuss any requirements you may have INTAKS is available for purchase and hire A N D D E A L S I E G Z N E W D E N D A E N R D U M T A N U F A C intaks.indd 1 1/05/17 8:33 PM 2015 Site Safe awards winner 2014 Safeguard Winner Taumanu Reserve Bridge 10 Resene Timber Design Awards 23 Silver at NZ Cover stories Cities Materials CONTENTS Design awards Wellington leading the national pack when it Future cities need to focus on liveability and Emission reduction potential, high asset value comes to commercial and industrial sector healthy living, Green Property Summit told 20 and growth in public awareness are driving confidence, Colliers International Research explosive growth in green buildings 22 100% NZ Made reports 6 Design New Zealand should combine its sustainable The largest recreational reclamation in the Major design awards showcased creative timber resources with an innovative Southern Hemisphere has collected yet another uses for wood in everything from architectural manufacturing system to build faster and more major award 10 excellence to engineering innovation 28 efficiently, an overseas expert urges 23 The ongoing tourism boom is boosting demand Facilities Management Commercial or Residential for new hotels throughout the country but will it Property A global leader in architectural revolving doors we cover it all. be enough to meet the need? 16 There’s an urgent need to reform city planning and security entrance systems is expanding to integrate planning, decision-making and Call us to discuss any Down Under 30 funding says Property Council Chief Executive requirements you may have Connal Townsend 5 An historic 1920s Auckland warehouse INTAKS is available for has been transformed into a modern, stylish purchase and hire workspace 26 Supporters Intaks . .2 Regus . 25 Chapman Tripp . 31 A N D D E iPlex ����������������������������������������������������������������������������������21 Red Cross . 27 Quest . 32 A L S I E G Z N E W D E N Editor Art Director Managing partner Printed by Subscriptions Geoff Picken Lewis Hurst Phil Pilbrow Crucial Colour Digital editions free to 021 2 507 559 [email protected] 027 564 7778, 09 489 8663 24 Fairfax Avenue, Penrose, qualified readers. 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ISSN 2324-3163 (Print) ISSN 2324-3171 (Online) MAY 5, 2017 4:03 PM PROPERTYANDBUILD.COM DIGITAL EDITION 3 intaks.indd 1 1/05/17 8:33 PM New Zealand magnet cities and the infrastructure conundrum Auckland in the 1990s was a very different city that saw itself as something it was not, at least not yet CITIES It had international ambitions retail centre on Auckland’s but could not yet compete with waterfront. Further commercial other cities around the world. and residential development is Auckland was simply New occurring along Albert Street. Zealand’s biggest city, nestled Large transport projects are un- quietly away at the bottom of the derway. The $1.4 billion Waterview Pacific. tunnel will link the southwestern Fast forward twenty years, and and northwestern motorways. Auckland is what KPMG calls a The tunnel is the missing last con- Magnet City. It attracts people, nection of the existing motorway investment, and ideas. They are network. internationally connected. Magnet Cities grow. Auckland Integration initiative can now stand shoulder to shoul- More importantly, the government der with other international cities, and the Auckland Council have but there is still work to be done. recently agreed to the Auckland The problem is that despite its Transport Alignment Project 1990s vision, Auckland prior to (ATAP) to help ensure integrated amalgamation failed to plan for the planning, decision-making and success it would attract. funding for future Auckland trans- The result; a severe housing port projects. shortage with soaring prices and a One of those future projects lack of infrastructure to cope with is the Northern Corridor which a rapidly growing city. will turn a section of the SH18 Because of poor planning and Highway east of Albany into a previous under-investment in full motorway, providing a direct infrastructure, Auckland is barely connection to Northbound SH1 treading water. Highway. This initiative will stimu- But it is not all doom and gloom. late future population growth and Auckland Council and central housing development in the area. government do have projects At the other end of New Zea- underway that will ease some land’s North Island, Wellington is transportation woes. And they are evolving into a different kind of working on how to fund infrastruc- Magnet City, one that invests in ture to cope with future population and promotes its own uniqueness. growth. It is not trying to compete with The City Rail Link (CRL) is already Auckland, far from it, but rather stimulating development, spawn- complement it. ing the construction of office and Wellington wants to become retail in the CBD. what in Magnet City parlance For example, the Precinct Proper- is known as a “second city”. Its ties Commercial Bay development attraction strategy is how it is is integrating a 39-level commer- different to Auckland and in doing cial office tower with a world-class so highlights its own strengths; 4 DIGITAL EDITION PROPERTYANDBUILD.COM MAY 5, 2017 1:33 PM CITIES out of the CBD, port, and airport. acts, and more keep being added The areas it will open up for devel- to the statute book to circumvent opment to accommodate growth it and speed up development. It is are huge. a mess. Those investments are not It is time for a total rethink in primarily about solving existing New Zealand about how we plan, problems but are to avert future fund and build our cities. That does ones and unlock growth potential. not mean we need to throw the This proactivity could be called baby out with the bathwater. ‘luck’ because, like Auckland in the We need to review spatial 1990s, there is no obvious coher- planning, land use planning, local ent spatial or development plan. and central government deci- sion-making and funding for the Regulation strangulation built environment and infrastruc- What is missing in Auckland ture development. Planning and and Wellington, and the rest of environmental protection needs to New Zealand’s major urban areas, integrate with economic develop- is integrated urban planning, ment. decision-making and funding There is an increasing ground- for infrastructure and the built swell towards such a reform. the movie / tech industry, tourism, environment. Property Council will be a central cafes and culture, tertiary educa- Central and local government part of that conversation. tion, and government. “Central and talk past each other rather than Why? Because New Zealand Fortunately, Wellington is not local government engage in active conversation on cities must grow, and evolve in grappling with major transport talk past each the issues they are both facing. a coherent way. This is non-ne- infrastructure challenges. The A contributing factor to this is gotiable if they are to flourish as recently opened Mackays to other rather than the complex myriad of legislation Magnet Cities in the Asia-Pacific. Peka Peka expressway will relieve engage in active and regulation. While many claim existing congestion around the conversation on the New Zealand has a world-class Connal Townsend is Chief Exec- Kapiti Coast. issues they are both Resource Management Act, the utive of the Property Council NZ, The soon-to-be-completed truth is it is not working for the which represents the interests Transmission Gully motorway will facing” environment or development. of the commercial property provide an additional transport In reality, built environment and investment industry – including route up the coast, linking into the infrastructure decision-making commercial, industrial, retail and Hutt Valley, and feeding into and and funding are spread over many property funds MAY 5, 2017 1:33 PM PROPERTYANDBUILD.COM DIGITAL EDITION 5 Wellington office market leads generally positive sector sentiment There has been a dramatic spike in the Wellington office sector, according to the Colliers International New Zealand Q1 2017 commercial investor confidence survey PROPERTY 6 DIGITAL EDITION PROPERTYANDBUILD.COM MAY 5, 2017 2:49 PM COMMERCIAL PROPERTY INVESTOR CONFIDENCE SURVEY Q1 2017 Wellington Office Auckland investor confidence