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 |
|
|
|
|
|
A |
R90 |
R130 |
R105 |
|
|
A |
R63 |
R95 |
R80 |
|
|
A |
R72 |
R80 |
R76 |
|
|
Bryanston/Epsom Downs |
A |
R80 |
R180 |
R107.50 |
|
CBD Johannesburg |
A |
R55 |
R85 |
R70 |
|
A |
R75 |
R115 |
R92.50 |
|
|
Cresta/Blackheath to Randpark |
A |
R75 |
R110 |
R79.82 |
|
A |
R80 |
R146 |
R120 |
|
|
Greenstone/Edenvale/Modderfontein |
A |
R105 |
R119 |
R105 |
|
Houghton /Killarney |
A |
R113 |
R140 |
R122 |
|
Hyde Park/Dunkeld |
A |
R100 |
R130 |
R113 |
|
P |
R200 |
R200 |
R200 |
|
|
Illovo |
A |
R115 |
R135 |
R125 |
|
Melrose/Waverly |
P |
R195 |
R195 |
R195 |
|
Melrose/Waverly |
A |
R100 |
R100 |
R100 |
|
P |
R85 |
R85 |
R85 |
|
|
Midrand |
A |
R50 |
R100 |
R67.50 |
|
A |
R85 |
R140 |
R105 |
|
|
A |
R95 |
R120 |
R115 |
|
|
A |
R65 |
R90 |
R77.50 |
|
|
A |
R110 |
R110 |
R110 |
|
|
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 |
|
A |
R78 |
R112 |
R90 |
|
|
A |
R85 |
R120 |
R95 |
|
|
Cape Town & Environs |
|
|
|
|
|
Belville |
A |
R80 |
R120 |
R100 |
|
CBD Cape Town |
A |
R75 |
R120 |
R95 |
|
A |
R85 |
R130 |
R100 |
|
|
A |
R95 |
R140 |
R105 |
|
|
A |
R80 |
R110 |
R105 |
|
|
Rondebosch/Newlands |
A |
R110 |
R122 |
R115 |
|
A |
R100 |
R170 |
R160 |
|
|
Durban & Environs |
|
|
|
|
|
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 |
|
A |
R90 |
R130 |
R119 |
|
|
Pretoria & Environs |
|
|
|
|
|
A |
R85 |
R85 |
R85 |
|
|
Brooklyn/Neuw Muckleneuk/Groenekloof/Waterkloof |
A |
R120 |
R146 |
R125 |
|
CBD Pretoria |
A |
R50 |
R50 |
R50 |
|
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 |
|
|
|
|
|
P |
R125 |
R125 |
R125 |
|
|
Greenacres |
A |
R80 |
R80 |
R80 |
|
P |
R120 |
R127 |
120 |
|
|
Newton Park |
A |
R70 |
R70 |
R70 |
|
Walmer/Fairview |
A |
R90 |
R110 |
R90 |
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