The national economy in South Africa has shown dismal growth in the last couple of years compared to her developing counterparts in other parts of Africa; such as Ethiopia, Mozambique, Nigeria, Tanzania, and even Congo and Ghana. On the continent with the most potential for growth – even in these difficult economic times – it would be expected that South Africa lead the way, but this is not the case. However, there are a few sectors that are doing surprisingly well considering the broader context; one of which is the listed property sector.
It was reported recently that the Fountainhead Property Trust negotiations on the unsolicited offer from Redefine Properties to acquire all its property assets was complete “in all material respects”, but it had extended the deadline until February 22.
“Green” has been quite the buzz word bouncing against curbs around the world for the last year or two, but what does it really mean in the context of a broking environment? In our day-to-day experiences dealing with clients looking for commercial property, we’ve found that while landlords and developers are moving toward making their buildings more “green”, the demand for these buildings, as well as knowledge of what it means to be green, barely makes it on a business’s list of things to consider when looking for office space or industrial property…
In these times where the global economy is under extreme pressure and the demand for vacant office space is dropping, JSE Property Funds are spending billions buying existing office buildings.
In a welcome move, the building regulations in South Africa have been revamped with effect from 9 November 2011 to emphasize minimum energy efficiency standards.
SABS has now completed development of SANS 10400 Part XA, a set of minimum standards for environmental sustainability in new and refurbished buildings.
Entering into a new lease for commercial property or renewing an existing lease is one of the biggest commitments which a business can make. Every business needs premises and when a long term commitment (3 years or longer) is made, either for warehousing, factory or office space, it is surprising how many landlords and renters need assistance with negotiations. However, it is a fact of life that leases have to be renewed at some time.
The value in renting energy efficient office space has increased significantly over the past few years for businesses all over South Africa. Occupying office space in a Green Building not only allows you to save money on monthly utility bills, it also boosts company moral value.
Contained in the latest industrial property figures released by SAPOA for the third quarter of 2011, the following facts re industrial property have emerged:
• Prime gross rentals for industrial property have remained stagnant
• Prime yields for industrial property is also stable at 9.25%
• Vacancies for industrial property are up at 7%
Johannesburg office space figures were recently released by SAPOA , where the following facts emerged (when compared with Q2, 2011):
• Office vacancies decreased from 11.1% to 10.5%
• Total gross rentable area (‘000m2) increased from 8,386 to 8,484
• Prime rental rates (R/M2 per month) remained unchanged
• Yield on Office Space declined from 8.75% to 8.5%
Property funds have outperformed other unit trusts over the past three to five years, according to the Property Loan Stock Association of SA (PLSA). According to Morningstar, one of the leading providers of independent investment research, five of the top-performing unit trusts in SA over the last five years were property funds while, over the last three years, four of the five top performing units trusts were also property funds.
On Tuesday, Minister of Finance Pravin Gordhan revealed plans to provide R25 billion over the next six years to stimulate industrial development zones, boost investments in enterprises and job creation, support green initiatives and to get the private sector to partner with the public sector to invest in infrastructure.
Melrose Arch has "AAA" Grade offices to let in a prime location in Johannesburg. Melrose Arch offers an exceptional environment and an internationally prestigious address and is home to the head offices of some of South Africa’s leading companies. This mixed use precinct is perfectly balanced to provide high street shopping, top class residential apartments, and prime offices to let.
In recent times there has been a demand by prospective renters of office to secure premises in an "intelligent" building. That is to say, one that has provided maximum levels of comfort, efficiency, cost savings and convenience. In most modern buildings, software technology has allowed us to do that.
The recent release of the SAPOA Office Space Vacancy Survey for the first three quarters of 2011 shows a modest vacancy growth. However, the vacancy growth pattern in the "A" grade office space category has reduced when compared with the previous year. In this sector, the vacancy rate has reduced by 0.4% since the first quarter 2011 and now stands at 8.0%
Ash Brook's Pretoria office is booming! Offices to let in Hatfield, Brooklyn, Menlyn and Centurion seem to be the flavour of the month. With dedicated offices set up in Pretoria, our agents are able to react quickly with in depth local knowledge, for companies requiring offices to rent in Pretoria and surrounds.
With the recent auction of the infamous Theodosiou Brothers' piece of land in Weltevreden Park for R85 million, it is patently obvious that investors, with the support of the banking fraternity, are showing confidence in the future of commercial property.
With all the news of recession, double-dip curves, falling rand, oil price increases, etc,etc, nobody would blame you for feeling depressed (pun unintended). However, in the midst of the gloom and doom, Liberty Properties have seen fit to invest, together with partners, Pareto Ltd, nearly two billion rand into their development and expansion of S.A's premier shopping mecca, Sandton City.
Okay, so you've made it through the first year (or two) of being your own boss. That puts you into the ten percent category. Now, take time out to re-assess your business. Why are you looking at the commercial property sites? Is it because your business grew so quickly that you ran out of office space? Or warehouse space? Or is your factory too small?
With the results for the first half year just being published by SAPOA/IPD SA Biannual Property Indicator, one must ask.... how do I make lemonade from this lemon?
Well, it's not all doom and gloom, for neither the property owner nor the renter.
It seems as if the commercial property industry is littered with confusion and lack of cohesion. The level of expertise within the industry varies dramatically, and therefore it is difficult to talk the same language. Lets take the example of the word "Commercial Property". Somehow professionals in the market see this as "Office Space" and "Retail Space" only, while others see it as "Warehouse Space" and "Retail Space". Let me clarify...
