A surge in industrial property development in the greater Cape Town area in the coming months is on the cards, says Orin Varney, manager of Old Mutual Properties' broking division.
He says Old Mutual Properties is investigating four potential developments for a total of more than 40 000m2 in Epping and Montague Gardens, two of the metropole's favoured industrial areas.
"These are for premises ranging from 18 000m2 down to 2 000m2, and reflects the extent of the pick-up in the industrial market since the first quarter of the year," says Varney.
"There is no real workable stock above 2 500m2 in key locations such as Montague Gardens, Paarden Eiland and Epping, and that is prompting the market to opt for new developments and refurbishments.
"Development is also being fuelled by acquisitions made by listed property companies and private investors.
"The prospects for refurbishment in longer established areas are also increasing.
"An indicator here is a recent letting of a 6 000m2 building in Epping after it had been vacant for many years."
Varney says factors that made some of the longer established areas pre-eminent industrial locations - such as good location and access to arterial routes and the port - continue to exist.
"The market will increasingly look to such areas for redevelopment opportunities as available land in locations closer to central Cape Town is taken up."
While the call now tends to be for space in areas such as Paarden Eiland, Montague Gardens and Epping, there are still larger premises available in outlying areas such as Brackenfell and Bellville, says Varney. - Argus Network
Publisher: Argus Network
Source: Argus Network
