Pillars of industrial property still shaky

Posted On Wednesday, 22 July 2015 18:38 Published by
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There is surprisingly still some life in the industrial property market because few speculative buildings are erected, in contrast to the office-building market.

Erwin Rode

The metropolis that is doing best is the Cape Peninsula, where market rentals are still growing at 6 percent. However, in the other cities the growth is well below consumer inflation.

Until there is a significant turnaround in the performance of the manufacturing and retail sectors, strong growth in industrial market rentals cannot be expected. This is according to Erwin Rode, chief property economist and professional valuer at Rode & Associates. The growth in manufacturing output and retail sales volumes has, in general, waned since 2010 and, for now, the prospects for these two sectors remain daunting.

On the retail side, several factors will continue to presage modest growth in retail sales volumes.

These are households that are overwhelmed by debt and therefore cannot afford much significant credit extension, high and growing unemployment, as well as very low levels of consumer confidence.

As for the manufacturing sector, its single largest hindrance to production remains the unreliable supply of electricity. 

As one of the speakers at the annual real estate investor conferences, Erwin Rode will discuss the outlook for the retail and manufacturing sectors, and the likely impact that this might have on the demand for industrial space and rentals. The conferences are jointly hosted by Rode and Real Estate Investor Magazine, and are sponsored by Wealth Migrate. They will take place in August in Durban, Johannesburg, Bloemfontein, Port Elizabeth, Cape Town and Windhoek.

The dates and venues for these events are as follows:

DURBAN Conference (half-day): Tuesday, 18 August 2015 at the Gateway Hotel, Umhlanga

JOHANNESBURG Conference (full-day): Wednesday, 19 August 2015 at Emperors Palace, Kempton Park

BLOEMFONTEIN Conference (half-day): Friday, 21 August 2015 at Ilanga Estate, Bloemfontein

PORT ELIZABETH Conference (half-day): Tuesday, 25 August 2015 at the Radisson Blu Hotel, Summerstrand, Port Elizabeth

CAPE TOWN Conference (full-day): Wednesday, 26 August 2015 at Spier Wine Estate, near Stellenbosch

WINDHOEK Conference (half-day): Friday, 28 August 2015 at the Hilton Hotel, Windhoek, Namibia 

Last modified on Wednesday, 22 July 2015 20:58

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