Rentals are set to rise as demand for quality stock far outstrips supply in both the investment and letting market in Durban and surrounding nodes.

"There is very little good quality stock available anywhere for industrial or office space and the number of qualified enquires is increasing each week," comments Rob Moran, regional director of JHI Real Estate.

"The ultimate effect will be to stimulate development but in the shorter term we are likely to see rental increases as tenants scramble for quality accommodation."

A-grade office space in and around Durban is in high demand, illustrated by the landmark Embassy Building where the only reported space left is a small office of around 270 square metres.

However, Moran comments that this is not the case for office space in the B and C grade sectors where some space in the city is not moving even at dramatically reduced rentals.

Westway Office is in very strong demand. Tenants are attracted to the location and easy accessibility.

Moran says that naturally investors are also coming up against a shortage of quality investment stock and the net result could be increased flexibility in investment criteria.

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JHI Real Estate (011) 441-0123