The arcade was vacated by the Queenstown Accommodation Centre, Cream Design Store Ltd, Fetch NZ and Queenstown Barber ahead of the revamp.
They were just a handful of the businesses who have or will move premises around the town centre due to redevelopment, high rents or expiry of leases.
Irish billionaire property developer Eamon Cleary owns The Plaza and Beech Tree arcades, as well as the waterwheel building, which has tenants including Peter Alexander, Just Jeans, Starbucks, Jay Jays and Hell Pizza, plus the Paper Plus and Mall Mania buildings in Queenstown Mall.
Mr Cleary's property manager, Jo Booker, of Arrowtown, said the Shotover St end of The Plaza would become two new shops of about 130sq m each.
The two connecting premises at the Beach St end would remain.
The arcade would be straightened to make it more inviting and it was planned to finish the redevelopment by the new year.
Mrs Booker said negotiations were continuing with several parties who were either in Queenstown and looking to expand or would be new to the resort.
"At this stage, there's no development of Beech Tree Arcade.
It's going to be left alone at the moment.
Refurbishment plans have been drawn up but it's a much more difficult building to do and requires a bit more planning."
The Queenstown Accommodation Centre moved to the first floor of the Chester Building, on the corner of Camp and Shotover Sts.
Director Hayley Stevenson said the shift from street frontage to the first floor made for a rental saving and more office space.
"When we first took over there [in the arcade] more than 20 years ago, what we were paying for a year we ended up paying for a month. Everybody's got to tighten the belts."
Fetch NZ and Cream moved to the entrance of Beech Tree Arcade, while Queenstown Barber shifted to lower Shotover St.
Cream owners Pip Day and Tracy McKenzie said central business district rents they had seen were between $800 to $1000 a square metre.
They wanted to remain in the area but said high rents were the biggest obstacle.
"It's amazing how many shops fail if they are three steps off the main drag," Miss Day said.
Fashion retail shop Jacqui E moved out of the corner of Shotover and Rees Sts and out of Queenstown last month.
The Opal Centre will shift from its temporary outlet in Beach St, the former home of Hopscotch, to the previous Jacqui E location in the third week of October.
Managing director Robin Lynes said The Opal Centre would operate there until the end of March 2009, then reopen in its permanent premises in the town centre.
Forest and Stream New Zealand and the Kiwi Gift Shop will move from The Wakatipu Arcade and will permanently take the place of The Opal Centre in the arcade on November 23, manager Ruth McGrouther said.
Happy Snappa moved from Beach St to combine with Positive Image to provide the best service for customers, the director of both companies and Queenstown Cameras, Bruce McKay, said.
"High rents were certainly a factor.
Our industry is going through a period of tremendous change and the trend is the price of goods and services are coming down at the same time our rents are increasing."
Mr McKay said Happy Snappa's rent had increased by 20%-30% every two years and its lease was up on September 24.
The company wanted to invest on improving the outlet, "but having to pay a lot of rent and key money wasn't economical given our experience of the site".
Real Journeys and Kawarau Jet moved out of the combined retail outlet In Touch Visitor Centre, on the corner of Camp and Shotover Sts, about a month ago.
Real Journeys operations manager Tracey MacLaren said it was a business decision to move on and it was business as usual from the company's other outlets.
R&R Sport began its expansion into the prime corner site last week, which was likely to open by Labour Day weekend.
Owners Mark Williams and Hadyn Key said the extra floor space would focus on casual travel clothing and would allow the Athol St side to become a dedicated wing for mountain bikes.
Elsewhere around downtown Queenstown, Simond Silver relocated from O'Connell's Shopping Centre to Beach St and Skin World on Beach St was closing down due to the end of its lease.
Fashion boutique Angel Divine moved from Queenstown Mall to temporary premises on Church St last August and was likely to move into its permanent home on Searle Lane in February.
Apex Car Rentals has received expressions of interest for short-term leases from three existing Queenstown businesses in the 10 days its sub-tenancy on Shotover St had been available.
