In Cape Town, Investec Property Group experienced a substantial 30% improvement in its leases concluded over the first six months of last year, with deals valued at R126,2 million concluded over 79,000m².
Specifically the office market has shown an increase in the number of leases concluded, with 29,000m² of space secured in leases valued at R72 million.
Contributing substantially to this figure is Dimension Data's five-year renewal lease over 5,080m² in Riverpark, a decentralised office park in Mowbray, worth R30 million.
"The industrial market in Cape Town remains strong with Investec Property Group having less than 1% vacancies in its industrial portfolio," said David Stoll of Investec Property Group, Cape Town.
From a national perspective, the level of rentals across Investec Property Group's portfolio remains acceptable, with renewals, which make up some 50% of the deal values achieved for the period, achieving a high ratio.
"The broker community continue to provide a crucial service to Investec Property Group with a substantial portion of the letting of vacant space being done by external brokers," explained Steve Grupel.
"While we see the general trend continuing to the end of the year, we do believe that there may be some levelling out, with shortages in stock becoming an increasing problem," said Grupel.
Publisher: Cape Business News
Source: Cape Business News
