Big box asset anchors Rangitikei retail corridor

A high-profile large-format retail investment on Palmerston North’s premier retail spine is being brought to market, offering investors a rare opportunity to secure nationally tenanted premises in one of New Zealand’s most resilient regional retail precincts, Bayleys brokers say.

Bayleys Palmerston North’s Karl Cameron is marketing the 8,094sqm (more or less) freehold site at 234 Rangitikei Street for sale by deadline, closing at 2:00 pm on Thursday, 11th December 2025 (unless sold prior).

Cameron says the premises are positioned within the city’s dominant bulk goods hub – a tightly held strip featuring national brands, high customer visibility and powerful retail clustering dynamics.

“Anchored by a lease to Australian retail giant Harvey Norman, and supported by Bed, Bath & Beyond, including a partial sublease to Postie Plus, and Uncle Bills, the fully leased complex delivers a net annual income of circa $1.02 million plus GST and outgoings.

“Strong lease covenants, structured rental uplift and established tenant trading histories underpin income certainty, while a 100 percent seismic assessment and modern construction ensure a low maintenance ownership profile.”

Comprising 4,083sqm (more or less) of floor area across two contemporary buildings, the complex features excellent functionality, high-quality presentation, and 107 on-site car parks.

Strategic position along State Highway 3 – the northern gateway into Palmerston North – ensures excellent exposure and an opportunity to leverage foot traffic, supported by neighbouring national occupiers, including Mitre 10 Mega, Woolworths, Noel Leeming and Cracker Jack.

Cameron says that investor appetite for regional daily-needs and big box retail assets remains strong, driven by improving consumer spending, resilient category performance and tenant demand for strategic large-format locations.

“Large-format retail has performed steadily in the recent economic cycle. Investors continue to seek well-located assets with national tenants, long lease structures, and reliable footfall.

“Properties of this scale, covenant strength, and presentation in key regional centres are tightly held and well-considered by both private and institutional investors.”

He adds that Palmerston North’s role as the commercial centre of the Manawatū-Whanganui region adds further depth to the opportunity, supported by a diversified local economy, strong logistics linkage, and local investment in key infrastructure.

“Palmerston North is a performing regional economy – home to major corporates, logistics hubs, national distribution centres and the region’s largest shopping destination. The Rangitikei corridor sits at the heart of that ecosystem, serving a catchment extending well beyond the city boundary.”

Rental structures across the tenancy mix offer a balance of CPI mechanisms, fixed growth and rental-term market reviews, providing both predictable uplift and long-term value protection.

Harvey Norman has exercised multiple renewals, demonstrating a commitment to the location, with further renewal rights available across the tenancy profile.

“With commercial yields stabilising and capital flowing back toward essential retail formats, this asset represents an opportunity to secure scale at a time when large-format retail listings are scarce.

“Investors today are drawn to assets with income durability and tenant covenant strength – this property offers both. Supported by quality construction, strategic positioning, and strong retail fundamentals, it stands as arguably Palmerston North’s most compelling passive investment,” Cameron says.