Spire Property Services' team in the province believes the increase in demand can be partly ascribed to the growth of the local economy , underpinned by a solid base of small to medium-sized manufacturing concerns.

More people are establishing owner-run operations. Areas in demand include Pinetown, Westmead and New Germany

Charmaine Giddey, regional manager at Spire KwaZulu-Natal, says: "The substantial growth in entrepreneurial concerns and start-up businesses has had a direct result on our portfolio of industrial properties, to the extent that all our units are now 100% fully let."

She says that areas such as Pinetown are thriving, as cheaper rentals, solid infrastructure and flexible lease options attract entrepreneurs across the spectrum.

"Many of these businesses are export-orientated, and KZN is well located for this, as well as providing a good quality-of-life option."

Giddey says their KwaZuluNatal office is experiencing an increase in interest from industrial tenants in East London.

"Investors are seeing the growth potential that prime industrial rentals hold. Bigger users are starting to look for premises that are better equipped than those on offer. This leads to opportunities for new development or redevelopment of older areas."

Carlene Kidwell, manager of Old Mutual Properties broking division, acting for a Durban consortium of property owners, says the three-year lease of the 10,000m² Jacobs property is a further indicator of an improvement in the industrial market in the greater Durban area.

It underlines the prevalent sentiment that brighter prospects are on the cards for the Durban industrial market.

"As a result of the renewed interest and take-up of space, asking rentals are being achieved.

"The short supply of prime industrial space has led to good increases in achievable rentals.

"We expect this to impact positively on the viability of new developments in the short to medium term," Kidwell says.

Business Day