INDUSTRIAL rentals and land prices across the Western Cape are showing a positive trend following increased manufacturing and export activities, partly on the back of a competitive rand, says Broll Property Group director William Wakefield.

"Increased demand for modern warehousing and industrial space, combined with few speculative developments in recent year,s has shifted the balance in favour of landlords," said Wakefield. "We are now experiencing a phenomenon where several tenants are bidding for one property and demand is beginning to exceed supply.

" Many older buildings are no longer suitable as today's users require buildings with high eaves and modern loading facilities together with spacious yards capable of handling the large road transport trucks. Several areas in the Cape Town region are experiencing unprecedented growth, with Montague Gardens arguably leading the pack.

Montague Gardens includes a favourable mix of warehousing, clean manufacturing and retail activities together with proximity to some of the fastest growing residential areas . The increasing industrial and retail component of Montague Gardens has increased land values, ensuring healthy returns for investors.

Airport Industria, alongside Cape Town's bustling international airport, has shed its mainly freight-oriented image through an infusion of other light industrial and quasi-retail users.

Security benefits from the National Key Point status of Cape Town International Airport, with measures significantly higher than those found in areas with a lower security profile.

"Airport Industria has been successful in creating a mixed-use zone centred, but not exclusively, on the business requirements of the airport," said Wakefield.

"The combination of relatively low land prices, superior highway accessibility to greater Cape Town and good security position makes the node an attractive option for an ever-increasing range of business enterprises." Epping, a long established industrial node, continues to attract large industrial users.

It offers rentals 25% to 50% lower than in newer areas and yet still has unfettered highway access and proximity to commuter rail transport. Importantly, it has a well-established ownership base that includes many national companies.

Because of increasing building costs, says Wakefield, the focus is on the redevelopment of older buildings.

This tendency has been given impetus by the success of the recently-introduced City Improvement District concept (CID) and the establishment of region-specific industrialist associations. Investors have found the Western Cape industrial property market is offering many unique opportunities.