Durban North emerging as Industrial hotspot

Posted On Tuesday, 04 June 2013 10:30 Published by Commercial Property News
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Springfield Park, Riverhorse Valley, Briardene and Mount Edgecombe are fast emerging as industrial hotspots in Durban North.

Durban NorthIndustrial property in these northern industrial suburbs is showing tremendous growth potential, as most of the South Durban Basin is oversaturated, with no new land available for development. 

North Durban is squarely on the radar for companies looking for warehousing facilities and container yards. The area has natural advantages, including a huge labour base in nearby KwaMashu and Phoenix, good connectivity via the R102, N3 and N2, and easy access to King Shaka International Airport and the port and container terminals at Bayhead. 

Anthon van Weers, senior industrial broker at Broll Property Group, says, ‘We’re seeing increased interest in inland warehouses and distribution centres connected to sea and airports. This growing trend will help companies reduce costs and create new opportunities for developers and investors in the industrial real estate sector.’

The confidence in these suburbs is reflected by the asking rents for industrial space, currently at just below R50/m², except for Riverhorse Valley Business Estate, which commands R58/m². Rents are likely to go up further in 2013 as demand continues to outpace supply. 

Just over five years back, Tongaat Hulett sold all the available land at R1 000/m². The same land now sells at R1 600/m². Despite the 60% premium, the demand continues to remain high, with vacancies under 1%. 

Springfield Park, Riverhorse Valley and Briardene are home to industrial and mixed-use buildings varying from the older multi-storey warehouses along the North Coast Road to brand-new developments like the Mr Price and RTT warehouses. Zenprop recently completed the state-of-the-art Mass Discounters warehouse in the heart of the Riverhorse Valley overlooking the N2, and Stefcon Projects has developed a new facility for Camjet. Demand for industrial property in Mount Edgecombe has also picked up tremendously.

‘This part of Durban is seeing significant infrastructure development compared to the south, where developers are citing several reasons for the lack of quality industrial development attributable mainly to non-availability of large parcels of land,’ says Van Weers. ‘The north has a huge land bank, so large projects can be put up.’

New developments in the area include the relocation of Altech UEC to the old Trade Centre retail warehouse on the R102.

Zenprop recently purchased 44 000m² of prime land on Marshall Drive and is in talks with several multinational groups for over 33 000m² of distribution facilities.

Last modified on Tuesday, 04 June 2013 10:44

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