Old buildings are lagging behind in rentals when compared to modern buildings with state-of-the-art access control security.
Org Geldenhuys, managing director of Abacus Divisions, says when it comes to rentals received, one of the trends emerging in the commercial property market is that older buildings across the board are typically lagging behind, by up to 15 and 20 percent, of those for newer developments - or for office developments with state-of-the-art access control security.
Org Geldenhuys, managing director of Abacus Divisions, says when it comes to rentals received, one of the trends emerging in the commercial property market is that older buildings across the board are typically lagging behind, by up to15 and 20 percent, of those for newer developments - or for office developments with state-of-the-art access control security.
Abacus Divisions is active in a number of key office parks in the Irene/Centurion area, including Route 21 Corporate Park and Highveld Technopark.
He says older buildings are not attracting the same rentals as new buildings and new office park developments – and this is unlikely to change in the foreseeable future.
Although tenants might arguably pick up bargains if they opt to rent older buildings, more discerning businesses are definitely tending towards newer buildings and are prepared to pay up to 20 percent more in many instances.
“We are also noticing a bigger demand for warehouse space – with almost no warehouse space, for instance, available at Route 21 Corporate Park.”
He says with more of a demand for warehousing space, areas such as Hennopspark - which offers affordable warehousing space – are becoming more sought-after.
“But, certainly, property owners sitting with older buildings – or older property portfolios – need to look at upgrading and refurbishing if they expect their rentals to keep up with those being received for newer, more modern buildings”
Rentals are expected to rise again during the fourth quarter, but owners of older buildings will be hard-pressed to receive much in the way of escalations, adds Geldenhuys.
Print
