Increased demand for light industrial space in Cape Town

Posted On Thursday, 27 February 2014 11:35 Published by
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The industrial property market in Cape Town's Northern Suburbs is experiencing an increased demand for smaller light industrial space, reports Nicol van Wyk, leasing and sales broker for JHI properties in the Western Cape.

Riverside Industrial Park Entrance - Paarl 

Leasing and sales broker for JHI properties in the Western Cape, Nicol van Wyk reports: "There is definitely a good demand particularly for smaller units from 150 to 300 square metres in the more sought after areas such as Stikland, Brackenfell and the Saxenburg area in Blackheath. We are receiving more enquiries for such space and as good stock in these areas is scarce, landlords can also charge a premium for the space."

Van Wyk recently sold three units, each 141sqm in size, in a 17-unit complex called Goudeblom, in Brackenfell, at a total combined value of R1 million. Offering very good exposure and easy access and ideally suited as accommodation for starter businesses, the units were all acquired as investment properties. Two units were purchased by an investor who already owns a couple of units in the complex, while the third was purchased by an investor who lives in the area.

Other lease transactions recently concluded by van Wyk include 142sqm and 239sqm of industrial space let in Saxenburg and a 653sqm warehouse in Stikland which was leased by an international tow bar company. Van Wyk says the smaller space is mostly being taken up by small business owners and the larger industrial space for companies either expanding or relocating.

Factory in Paarl sold to Eco-Green

In Paarl in the Cape Winelands, van Wyk has sold a modern 1203sqm factory for just over R3 million to Eco-Green, suppliers and distributors of eco-friendly agricultural products seeking larger premises for expansion.

Van Wyk said: "Eco-Green is a well-established, family business which is flourishing. As their existing business is in Paarl, it made sense to buy in the same area, as the whole family lives in the vicinity. They also preferred to invest in their own premises than pay rent.

"The factory is located in a light industrial security complex called Riverside Industrial Park. The new owner liked the look and feel of the complex, which is very well maintained and has 24 hour security," he says.

Last modified on Thursday, 27 February 2014 11:59

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