Bayleys brokers are calling an expansive, high-profile commercial site on Palmerston North’s busiest arterial route one of the most significant development opportunities to come online in the Lower North Island in recent years.

The substantial landholding comprising more than 2.88ha (more or less) of predominantly vacant bare land at 412, 416, 418-426, 428-432 and 564 Rangitikei Street is offered for sale by deadline, closing at 4:00 pm on Thursday, 8th May 2025 (unless sold prior).

“Spanning four titles, this property offers a rare and substantial opportunity for institutional, international and strategic investors, as well as developers and corporate owner-occupiers, to establish a foothold in one of the region’s fastest-growing corridors - bolstered by nearly $8 billion in planned infrastructure investment,” says Bayleys Manawatū commercial sales broker Karl Cameron, who is marketing the property with colleagues Sunil Bhana and Mark Sherlock

“With 2.68ha (more or less) of freehold land and an additional 0.20ha (more or less) leasehold title, this property provides an unparalleled platform for a large-format retail development, service station, and food and beverage operations. Positioned on State Highway 3, the site benefits from the highest traffic counts in the city, ensuring premium visibility and accessibility.”

Cameron says the scale of the offering is unmatched, particularly as Palmerston North experiences an economic resurgence underpinned by record levels of infrastructure investment and primary industry performance.

“Multiple high-profile infrastructure and construction projects are set to transform the region – including the Mercury Energy Wind Farm, the nearly completed Manawatū Gore Highway replacement, and the proposed KiwiRail Regional Freight Hub. These, coupled with major developments focused on efficient transit north of Wellington, promote accessibility and elevate Palmerston North as a key logistics and commercial centre for the Lower North Island.

“The timing is ideal for forward-thinking investors and developers to take advantage of this exceptional site’s scale, zoning flexibility, and high-exposure position in an increasingly dynamic market.”

The Fringe Business zoning categorisation enables a range of commercial applications, with a particular emphasis on large-format retailing. Bayleys Auckland commercial and industrial director, Sunil Bhana, says the designation was introduced in 2004 to meet the growing demand for large-scale retail premises.

“Within the region, there is a shortage of land zoned with this capacity. This designation has become a key driver of Palmerston North’s commercial expansion, which, for prospective purchasers, complements strong market fundamentals, sustained retail demand, and a pro-business environment to make this one of the most sought-after and rewarding development precincts.”

The property features a circa 1,201sqm building currently generating holding income, providing an immediate revenue stream for investors while exploring potential development plans. Its dual access – via Rangitikei Street and a secondary laneway from Tremaine Avenue – adds further appeal for high-traffic commercial operators.

Palmerston North’s position as a growing logistics hub has been reinforced by sustained population growth and a rapidly growing commercial landscape. The city’s central location and well-established transport links have made it an attractive base for national and international businesses seeking efficient supply chain connectivity.

“An improving economic outlook and development landscape, a booming infrastructure pipeline, and a strategic regional location underscore the compelling nature of this opportunity,” says Bayleys Wellington commercial and industrial broker Mark Sherlock.

“Nothing compares with this site in terms of scale, visibility, and development potential. For investors and developers looking to make a transformational play in the region, this is the best site in the city – without question,” he adds.