CBD decline in question - vacancy debate

Posted On Friday, 11 May 2001 03:01 Published by eProp Commercial Property News
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Advocates of the Johannesburg CBD revival insist there is something wrong with the SA Property Owners' Association (Sapoa)'s latest quarterly survey.

Neil FraserFinancial Mail reports that the March survey shows A-grade occupancy declining to 76,4% - an emptying of 50 000 m², equivalent to half of Sandton City, in just three months.'It's not possible,' says Central Johannesburg Partnership executive director Neil Fraser. 'I know of at least six buildings that new tenants have moved into. The statistics do not tie up with the dynamics here.'
Property consultant Erwin Rode added that he was unsure of whether he should continue to trust the Sapoa figures.
But Sapoa spokesman Stan Garrun is adamant that the survey is reliable. It covers about 90% of all buildings in the CBD, A-grade and B-grade (older, air-conditioned buildings with adequate parking).
'The results are collated independently and audited by a panel of brokers,' says Garrun. 'Seven buildings lost tenants occupying large amounts of space - more than 10 000 m² each - at Kine Centre, Life Centre, Sanlam Centre and TrustBank building. Vacancies decreased in 10 buildings but they did not nearly make up for the loss of tenants elsewhere.'
The March vacancy level is a reversion to the longer-term mean. The December reading, showing a 19,9% vacancy level, was 'essentially a blip in the chart', Garrun says.



Last modified on Monday, 19 May 2014 13:41

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