THE commercial office market in Johannesburg appears to have stabilised, according to the latest office vacancy survey released by commercial property association Sapoa.

But Sapoa CEO Brian Kirchmann says vacancies in some Johannesburg areas have risen. In Bruma vacancies have risen about 2,5%, while Midrand has seen an increase of 6% and Milpark 4%. Kirchmann says all other areas have remained static. "In most nodes the trend is positive."

He believes the increases in some areas may be due to logistical problems, or because the areas were just not desirable.

In Pretoria and Durban, Kirchmann says vacancies have either fallen or remained static. "Pretoria and Durban as far as all the areas are concerned are showing the best trends in terms of office take up," he says. "Cape Town and its environs are also looking positive with very little vacancy increases."

Johannesburg-based property economist Francois Viruly does not feel the Johannesburg office market has stabilised. What concerns him is that up to 50% of the office space currently under construction, which he considers to be high, is of a speculative nature. "I will only take a view that we have turned the corner once I have seen at least two quarters of improvements,"
he says.

Feb 18 2004 08:02:40:000AM Nick Wilson Business Day 1st Edition