Green says that, because of the lower interest-rate environment, many small business operators are electing to acquire their industrial premises rather than rent. This is taking place across SA's industrial property sector.

"However, there is not much stock available for small entrepreneurs to acquire and thereby move into the sectional title market," says Green.

The system works the same as in the residential property market. "It's governed by sectional title legislation and allows the smaller investor to acquire small industrial units. It looks like a residential townhouse complex, except it's small warehous es with offices linked to them," he says .

The rising popularity of such industrial sectional title schemes is shown by good sales at Prospur Business Park, located off the N13 freeway in Boksburg.

Pace, the marketer of the park, says that the development was launched on Thursday last week and 75% of the park had been sold to small businesses by Friday. "These were sold off-plan and will be built next year," says Green.

"These are being bought by small to medium industrial businesses which are renting in other commercial parks," he says.

The units range in size from 100m² to 400m². Prices range from R325000 to R1,2m.

Green says that in some cases the monthly bond instal ment can be less than the market-related rental because of the low interestrate environment.

He says Pace will launch more sectional title industrial schemes next year, totalling about 100000m².

Colin Young, fund manager of Old Mutual's South African-listed property funds, says it makes sense for smaller businesses to buy their own properties because it can reduce costs but this trend does not affect the small manufacturer involved in exports as they are struggling because of the strong rand.

He says the trend would benefit importers and anyone involved in distribution further down the supply chain .