This was confirmed by Org Geldenhuys, a trustee from the Route 21 Property Association, who added that phase two – which involves the development of a further 39 stands – is “now underway”.
Some of the leading tenants resident at the office park include the likes of Digicore, BAE Systems, Dimension Data, Capitec Bank and Land Rover SA.
Geldenhuys said the value of phase two would also, in value terms, be in excess of R1 billion – although there were less stands to sell.
“Besides providing tenants with a grade A office environment we also offering substantial warehousing space.
“Despite negative market sentiments everywhere, we’ve seen strong growth in rental demand in Route 21 with developers and owners seeing ‘gross rentals’ for the first time coming close to the magical R 100.00 per square metre national average for ‘A’ grade offices with many thousands of square meters signed up at R 95 per square metre.
“Prime warehousing space has seen R 50 – R 65 per square metres during this year. We’ve also seen an annual increase in asking rentals of close to 20% between February 2008 and February 2009 for new developments. Escalations where on average between 8 % and 10% per annum, although lower inflation predictions and a downwards interest rate cycle for the year ahead would bring escalations down closer to 8%.”
Geldenhuys said the park has developed into a very sought after location for business as a result of its proximity and access to highways – and due to its security infrastructure.
Low vacancy rate
The park still has a very low vacancy rate of between 1.5% and 5% at any given time. “This factor - linked with our desirability as a business location and the current onerous financial requirements from banks for new developments -will ensure that vacancies remain low and rental demand will remain high for the foreseeable future.”
He said the advent of institutional investors in the bigger Irene / R21 /N1 area during the last two years also guaranteed that the area will remain a top investment location for owners and commercial developers in the Pretoria/Centurion area over the next few years.
Publisher: eProp
Source: CP
