Office vacancies could increase

09 Jan 2012

In the past two years the rate of increase for national office vacancies has been relatively modest and vacancies could still remain under pressure.

According to the South African Property Owners Association (Sapoa) and Investment Data Bank (IPD) Office Vacancy Survey Q4 2011, across the 49 commercial nodes surveyed, the South African national office vacancy rate continues to increase.

According to the South African Property Owners Association (Sapoa) and Investment Property Data Bank (IPD) Office Vacancy Survey Q4 2011, across the 49 commercial nodes surveyed, the South African national office vacancy rate continues to increase.

Over the past year the vacancy growth trend has been modest and in Q4 2011 it increased by a further 13 basis points on Q3 2011 reaching a new two-year cycle high of 10.4 percent.

Across the country, prime space (P and A Grade offices) is performing better than lower grade stock.

The the A grade vacancy rate is 8.5 percent and P grade is currently at 2.0 percent.

The report indicates that C grade space continues to feature in the upgrading strategies of investors.

A key consideration over the medium term will be the ability to retrofit environmental and cost savings measures in brownfield assets as opposed to the relative ease of applying these measures in new greenfield developments, notes the report.

Writing in the report, Marc Schneider from IPD says Pretoria in Gauteng has steadied recently after a period of gradual increase, while the Port Elizabeth rate has decreased since its inception in Q3 2009.

Port Elizabeth now trends below the Cape Town level and is approaching the Pretoria level.

Although Cape Town's levels have hardly moved much around the 8 percent level over the past two years, it has now breached the 9 percent mark.

The table below shows rentals in the P and A Grade offices across the country as per the Q4 2011 report. 

Area

 Office Grade

 Rental (min) R/m2

 Rental (max) R/m2

 Rental (med) R/m2

Johannesburg & Environs

 

 

 

 

Bedfordview

A

R90

R130

R105

Braamfontein

A

R63

R95

R80

Bruma

A

R72

R80

R76

Bryanston/Epsom Downs

A

R80

R180

R107.50

CBD Johannesburg

A

R55

R85

R70

Constantia Kloof

A

R75

R115

R92.50

Cresta/Blackheath to Randpark

A

R75

R110

R79.82

Fourways

A

R80

R146

R120

Greenstone/Edenvale/Modderfontein

A

R105

R119

R105

Houghton /Killarney

A

R113

R140

R122

Hyde Park/Dunkeld

A

R100

R130

R113

Illovo

P

R200

R200

R200

Illovo

A

R115

R135

R125

Melrose/Waverly

P

R195

R195

R195

Melrose/Waverly

A

R100

R100

R100

Midrand

P

R85

R85

R85

Midrand

A

R50

R100

R67.50

Morningside

A

R85

R140

R105

Parktown

A

R95

R120

R115

Randburg

A

R65

R90

R77.50

Rivonia

A

R110

R110

R110

Rosebank

P

R181.50

R181.50

R181.50

Rosebank

A

R110

R180

R132.50

Sandton & Environs

P

R133.50

R190

R165

Sandton &Environs

A

R100

R195

R142.50

Sunninghill

A

R78

R112

R90

Woodmead

A

R85

R120

R95

Cape Town & Environs

 

 

 

 

Belville

A

R80

R120

R100

CBD Cape Town

A

R75

R120

R95

Century City

A

R85

R130

R100

Claremont

A

R95

R140

R105

Pinelands

A

R80

R110

R105

Rondebosch/Newlands

A

R110

R122

R115

Waterfront

A

R100

R170

R160

Durban & Environs

 

 

 

 

Berea

A

R90

R115

R105

CBD Durban

A

R65

R115

R100

Hillcrest/Gillits

P

R85

R177

R108

Hillcrest/Gillits

A

R55

R130

R95

Umhlanga/La Lucia

P

R85

R85

R85

Umhlanga/La Lucia

A

R90

R155

R115

Westville

A

R90

R130

R119

Pretoria & Environs

 

 

 

 

Arcadia

A

R85

R85

R85

Brooklyn/Neuw Muckleneuk/Groenekloof/Waterkloof

A

R120

R146

R125

CBD Pretoria

A

R50

R50

R50

Centurion

A

R100

R125

R119

Hatfield/Hillcrest

A

R120

R134

R120

Highveld Technopark &Extensions

A

R100

R148

R131.50

Lynnwood/Menlo Park/Persequor Park/Hazelwood

P

R155

R155

 R155

Lynnwood/Menlo Park/Persequor Park/Hazelwood

A

R112

R125

R120

Menlyn/Faerie Glen/Ashlea Gardens

A

R105

R145

R112.50

PTA Eastern Suburbs/Route 21

A

R74

R131

R110

Port Elizabeth & Environs

 

 

 

 

Greenacres

P

R125

R125

R125

Greenacres

A

R80

R80

R80

Newton Park

P

R120

R127

120

Newton Park

A

R70

R70

R70

Walmer/Fairview

A

R90

R110

R90

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