Affordable rental offices in Gauteng - Bedfordview and Bruma

Posted On Monday, 23 May 2016 16:49 Published by
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Located around the Gillooly’s Interchange, the intersection of the N3 Western Bypass and the R24 (Johannesburg CBD to O.R. Tambo International Airport), Bedfordview and Bruma is an attractive office node to tenants looking for affordable rentals.

Corporate_Office_Bedfordview

Rentals range from R85/m2/month gross for B-grade and up to R155/m2/month gross for P-grade space.

“The node is particularly popular with the travel industry, consulates and service industries due to its close proximity to the O.R Tambo International Airport,” says Eddy Stern, Broll Property Group broker for the area.

Generally, space in demand is medium sized units (300m² to 800m²) with the occasional unit in excess of 3,500m². Lease agreements are for three years, with lease escalations of 8.5% while lease operating cost escalations are pegged at 9%, according to the Bedfordview and Bruma Office Market Report, May 2016.

Stern explains that while one can expect to pay between R145 to R155/m²/month gross for P-grade space, Bedfordview has a shortage of P-grade stock.  However, the HQ Bedfordview, a sectional title scheme offering space measuring from 140m² to 8,000m² is expected to help meet demand for high quality space.

“The node is also experiencing limited supply of modern quality and energy-efficient office buildings.”

He notes that Bedfordview comprises of predominantly A-grade offices which constitute 59% of the total stock, while B-grade makes up 30%. Minimal P-grade stock exists and the remainder is C-grade while in Bruma, 54% of stock is A-grade and 43% B-grade stock.

Compared to Bedfordview, vacancy rates for A and B-grade stock in Bruma for Q1 2016 are around 3% and 14% respectively. Meanwhile, Bedfordview A-grade had vacancy rates of 25% while B-and C-grade rates were approximately 38% each.

Stern points out that construction and speculative development levels are low with current developments being mostly tenant-driven, built to specification and pre-let arrangements. In Bruma, there is limited new stock coming onto the market, with the exception of The Cavaleros Group’s latest development, Eastgate Office Park, a 7 storey building with a GLA of 9,000m².

“Although for the next 12 months we expect demand and supply to remain stable, the Bedfordview and Bruma node will continue to see growing demand especially where this demand is based on ideal location and the need to escape the congestion of mainstream corporate nodes,” he adds.

Last modified on Tuesday, 24 May 2016 19:25

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