Shopping centre owners and retailers seem to think so. The reason for this is that many millions are being spent around the country to improve and expand centres to prepare for the next upswing.
Although retail spend is still under pressure, the redevelopments are primarily driven by a demand from retailers who are looking for space before the economy turns a corner.
"However, retailers are cautious to rent in new centres and prefer to expand in existing centres," says Stephan le Roux, regional director of retail at Growthpoint.
He says before Growthpoint can start with its redevelopment plans, at least 70% of the space needs to be pre-let.
Richard O'Sullivan, rental director of Retail Africa, a developer of shopping centres with assets of more than R3,5m, says it is now the time to be innovative and forward-thinking, seeing that it takes a year or two to get a shopping centre off the ground.
This has made it necessary for Retail Africa to identify opportunities to redevelop existing assets.
Retail Africa has several redevelopments underway, among which the old Joshua Doore centre in Welkom. The centre, which is vacant, is being converted with extra retail space of 34,000sqm into the brand new Goldfields Mall at a cost of R470m. Rental agreements have already been signed with Checkers, Woolworths, and the Truworths and Foschini groups.
The company is also busy expanding the Ballito Junction centre in Ballito on the KZN North Coast in a joint venture with Absa.
The first phase, which entails an expansion of the Pick n Pay from 2,500 to 4,000sqm and Liquor Coty from 250 to 650sqm, will cost about R75m, says O'Sullivan. This also includes a Dis-Chem of 1,800sqm and Absa and FNB branches. This is part of a larger investment of R2,5bn on the longer term and includes a massive development for mixed use.
The developer Attfund will be revamping two of its centres at a cost of R815m. The Clearwater Mall on the West Rand will be enlarged to a massive 87,500sqm at a cost of R375m and the expansion of Woodlands Boulevard in Pretoria East to 71,000sqm will cost R440m.
At Clearwater it includes bigger space for Edgars, Woolworths and Stuttafords, while the Game store and Dis-Chem are new.
Among the new retailers at woodlands Boulevard are the Food Lover's Market, Game and Dis-Chem.
Louis Norval, chief executive of Attfund, says although some SA businesses are still cautious, Attfund has a different approach. "We see this as an opportunity to expand both centres and make them dominant in their respective markets so that they are well-placed when the economy recovers."
He says building costs are currently more competitive, which makes it more beneficial to build.
Growthpoint is busy doing extensive upgrades to the Game City centre in Greyville, Durban, at a cost of R15m, after which it will be redubbed the City View centre. The Kolonnade centre in Pretoria North, of which half is owned by Growthpoint and the other half by the Sasol pension fund, is currently being expanded by adding 2,400sqm at a cost of R32m.
Other centres that being upgraded, are:
- Sandton City, which is being revamped at a cost of R1,77bn to an enormous 158,00sqm in one of the largest retail expansions to date.
- The Glen in the south of Johannesburg, which is getting an extra 19,400sqm at a cost of R167,9m. - Elma Kloppers, Sake24
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