PROPERTY commentators say they are seeing increasing demand for certain types of office space in Johannesburg and Cape Town, indicating an upswing in the commercial market in both centres.

Listed property loan stock company Spearhead Property Holdings leasing consultant Debbie McCallum says there is an upswing in the Cape commercial market and that many of the company's clients have been showing far more optimism.

She says at Roeland Park, on the corner of De Villiers and Sterling streets, Spearhead has signed a deal with McCarthys Auto Trimmers, who have taken 1100m² of space. McCallum says the conclusion of the deal has le d to the building being fully let. At Spearhead's Cashbank House, No 3 St George's Mall, African Bank has taken 379m² and the Achievers School of Business has signed for a similar space.

Meanwhile, in Johannesburg, Barrow Properties say they have detected a pick-up in the commercial market in the second half of 2003, setting the scene for the release of Pinewood Square phase two, aimed at small to medium businesses.

Barrow director Paul Barrow says the overhang of A -grade space is seemingly being steadily eroded in response to lower rental and interest rates and stepped-up business activity. He says that has generated a simultaneous demand from owner-occupiers seeking longerterm security of tenure and good capital gains.

David Green, MD of commercial property investment brokers Pace Property Group, says A and B-grade office space is showing declining vacancies with the result that there is limited stock available in Johannesburg's northern suburbs and Cape Town's southern suburbs. But Green says there is still a good supply of lower grade office space, particularly in Sandton, Rosebank and Parktown in Johannesburg and Cape Town's central business district.

Mar 24 2004 07:21:16:000AM Nick Wilson Business Day 1st Edition