Leasing retention at Redefine scores well

Posted On Thursday, 27 May 2010 02:00 Published by eProp Commercial Property News
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Redefine executive director responsible for operations, David Rice says 84% of the leases that expired in the first six months of the financial year were renewed, and he expects a similar retention rate for the next six months

David RiceAccording to Rice, letting activity at Redefine Properties is at an all time high. Leases over more than 565 000m2 of space were concluded in the seven months to the end of March 2010, and April and May have been even busier, with further renewals and new leases concluded.

“To fill the space that tenants may vacate during this period, and to make a dent in the space that is already vacant, we have placed a huge emphasis on new letting deals,” says Rice.

Quintin Rossi, the national leasing manager responsible for new lettings, says the team is definitely experiencing an increase in demand for space, especially in the industrial sector. In the first six months of the financial year, new lettings were done over 75 400m2. Since then, in less than three months, leases over 65,800m² have been concluded for previously vacant space, which should bring the vacancy down by the financial year end.

Rossi says Redefine fields new leasing enquiries of over 161,000m² nationally, per month. “Our conversion rate from enquiry to signed deal has averaged between 8%-10%, but the activity of the last few months has increased this rate to over 10% on average for the year,” he says.

Significant new leases for industrial space, concluded since end February 2010, include a 20 000m2 deal with Duro Processing in the Alrode facility previously occupied by African Glass; a 9 000m2 deal with Precision Molding and Engineering Works for an industrial property in Port Elizabeth; and a 10 400m2 deal in 5 Laub Street in New Centre, which was let to Fair Price. In addition, the Taxi Finance Co took 5 000m2 at Rand Stadium Toyota in La Rochelle.

Major renewals include the SANDF offices in Pretoria for 22 700m2 for two years and Price Forbes renewed 14 270m2 in 90 Rivonia Road, Sandton. Glenrand MIB renewed its 12 600m2 Randburg head office lease to 2015 and Absa renewed its lease for 10,500m2 in Parktown for a further seven years along with the Flagship Pro Shop for 5 045m² for three years. 

Last modified on Tuesday, 22 April 2014 13:46

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