Commercial sector
Generally sluggish with very little movement in the market place
Tenants are able to re-negotiate leases on favourable terms
Triple A-grade office space in the CBD is plentiful which is putting downward pressure on good quality A-grade buildings to levels below R90/m² gross excl VAT
Century City is the destination of choice with sectional title and leased units being snapped up off plan
Industrial sector
A shortage of big box A-grade warehousing
Electricity costs are negatively impacting on the manufacturing industry which is reliant on heavy power. Landlords are having to reduce rentals to assist these tenants
Over supply of industrial units in the size range from 100m² to 700m²
A shortage of vacant industrial buildings for sale for owner / occupiers
Land sales remain sluggish despite there being a shortage of serviced sites
Investment Sales
Strong demand
Short supply
Yields range from 7.5% to 10% depending on type and quality of property, covenant by tenant and terms of lease