This is the word from Jane Parker, commercial broker at Broll Property Group, part of the CB Richard Ellis Affiliate Network, who also believes that Illovo is moving out of Sandton’s shadow.

Parker says while some companies are moving out of the area, other businesses are expanding their current premises and new tenants are “grabbing up the space as it becomes available”.

“Illovo Boulevard consists of high-quality offices and prestigious tenants such as Webber Wentzel, Impala Platinum, JP Morgan, Brait and Ethos. There’s always interest in Illovo Boulevard, with a number of buildings undergoing tenant changes.”

Illovo’s Fricker Road is a prestigious location with a high-quality tenant profile. It’s a well managed precinct with its own infrastructure and good security. Comprised mainly of A-grade space in a low-rise office-park environment, it is characterised by street-style coffee shops in an aesthetically pleasing precinct. Illovo’s Oxford Road is a mixed-use node with high-quality retail and ribbon office development.

“Illovo is well positioned between Rosebank and Sandton, with good highway access on Corlett Drive. And the Gautrain bus stop in Fricker Road gives easy access to high quality public transport. A redevelopment of the site on the corner of Oxford and Chaplin roads, which will be tenant-driven, is scheduled, while the Thrupps Centre on Oxford Road has recently undergone a major refurbishment,” Parker says.

Rentals in Illovo increased steadily until the first quarter of 2008, when they leveled off at R130/m². In the third quarter of 2009, rentals dipped slightly to R125/m2 and have been holding steady since. Vacancies showed a sharp drop from a 15% high in the second quarter of 2003 to 4% in the first quarter of 2004. The general trend was then downward until the second quarter of 2008, when vacancies increased to 5%. In the last three years, vacancies have dropped again and are currently holding steady at 2%. 

“Demand is good, with larger tenants on Fricker Road, while the Oxford Road strip accommodates the smaller occupiers, on leases of three to five years.” Committed new office developments of 12 000m² are also in the pipeline, promising more space for those who want to move their offices to this high-status area.