Vacancies fall fast in A grade Pretoria CBD offices.

Posted On Thursday, 06 February 2003 10:01 Published by eProp Commercial Property News
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Vacancies in A grade office buildings in Pretoria's central business district (CBD) have halved in the past nine months.

Property-Housing-ResidentialAccording to the latest office vacancy figures from commercial property industry association Sapoa, the capital city's A grade vacancies came down to 8,7% in the quarter ended December last year from 16,9% nine months earlier.

This vacancy figure hit a low of 6% in the quarter ended September last year.

However, the general Pretoria office market has not escaped the oversupply syndrome affecting major nodes across the country.

This is reflected in the vacancies of the city's B grade office buildings, which hit 22,6% in the quarter ended December up from 16,9% nine months earlier.

Total vacancies for Pretoria and its surroundings stood at 17,4% in December. This meant that 63040m² of office space was unoccupied against a total of 361387m².

Lyons Property Company director Gerrie Minaar says although the Pretoria market has unique features relating to government tenancy and is smaller it has not escaped the downturn experienced in bigger markets in the past few months.

Property dealings have slowed down in the past few months as business people adopt a 'wait and see' approach in the light of a not-so-good trading environment, says Minaar.

He says that the Pretoria central business district is an important destination for government as well as public sector institutions.

The CBD recorded significant transactions in which space of up to 40000m² was taken during the December quarter.

With the moratorium on government relocating from the CBD, it is expected that there will be a constant take up of space by the various departments in the foreseeable future, says Minaar.

Speaking of decentralised nodes of Pretoria, Minaar says that Arcadia, due to its close proximity to the CBD of Pretoria, has for many years experienced problems similar to those of any inner city.

'This has had a negative impact on the area, and corporate tenants are reluctant to consider Arcadia as a decentralised node,' says Minaar.

He says Arcadia's vacancies have increased steadily during the past 12 months. However, certain of the A grade buildings on the perimeter of Arcadia appear to have maintained full occupancy at rental levels of about R50/m², he says.

Shifting to an area classified as Brooklyn-Nieuw Muckleneuk, Minaar says this suburban office node has been the most sought after area in Pretoria. Some prestigious new buildings were completed and about 20770m² were leased at average rentals of R65/m² recently.

He says that the Brooklyn area is becoming the new financial and legal district of Pretoria, and is attracting the attention of foreign missions. Minaar says strong demand seen by Hatfield in the early 1990s resulted in the largest amount of A and B grade space being developed in a single node.

Hillcrest is expected to become the main focus of attention during the next year or two with the development of a 40000m² new office space.



Last modified on Thursday, 15 May 2014 15:48

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