That's the result of Colliers International latest quarterly commercial property confidence survey. Overall confidence is lower, particularly in the main centres, but optimism has grown in Nelson, Tauranga, Queenstown, Dunedin (why?) and Palmerston North!

Tauranga remains most positive (+6 per cent) the only place in the country where the optimists outnumber pessimists.
And so the question has to be asked, why? Why are commercial property players feeling so good about Tauranga?
In my humble opinion, it has a lot to do with the size of the market and ownership. The Tauranga commercial market is not large by national standards, which means that market dynamics are easily understood. We simply don't have the scale of an Auckland or Wellington, but equally our market fundamentals are more predictable.
Take the CBD for example, it is geographically constrained on a peninsula and is small, even compared to Hamilton. The good news is, this has the effect of generally making retail space sought after, particularly in areas of strong pedestrian flows such as Devonport Road West and lower Grey Street East. This is good news for landlords as it also helps to ensure decent rental returns and growth.
Contrast this with Auckland where there are all types of pressures coming to bear negatively on that CBD.
Again, and I have to generalise here, the typical Tauranga commercial property owner is not heavily geared with their investments. Indeed, many of the CBD properties stay in the same ownership for decades. This has the effect of removing the bogey of debt servicing in times of economic downturn or vacancy.
No wonder then, we are the most positive place in the country at present. And on that happy thought, have a safe and enjoyable Easter.