South Africa's commercial and industrial property market is expected to be characterised by rising lease values, declining vacancies and the signing-up of more tenants in the next six months, property portal eProp said.
 
eProp's Commercial Property Confidence Index (CPCI) for March 2005 reveals that 75% of respondents are looking forward to improved business conditions in the short-term.
 
"The CPCI indicates strong confidence levels for the coming half-year. The only potential blot on the horizon is concern about urban management capabilities in the public sector," said eProp research
director Marc Schneider.
 
On a net balance basis, some 81% of respondents reckon that lease values will rise in the next six months and more than 70% predict climbing occupancies. More than 20% expect to hire more staff to cope with accelerating market activity.
 
eProp, which recently changed its name from Sapoa Online, offers research tools which keep track of commercial and industrial property markets.
 
Its CPCI is the first of its kind in South Africa and tracks the sentiment of a sample of property managers, asset and portfolio managers, and brokers.

Respondents rate their expectations of ten market factors that are unique to commercial property, including number of leases and sales; value of leases and sales; net operating income; rental and vacancy levels; capitalisation rates and staff employed. A more general category is sentiment about the management of the public environment.
 
"It's the only index that assesses the outlook for commercial property-specific variables," Schneider added.
 
The buoyant outlook painted by the CPCI is backed up by the results of eProp's Macro Property Barometer (MPB) for the first quarter of 2005. The MPB assesses historical trends in the property environment measured by eleven key economic variables.
 
The latest MPB charts a slow, steady rise in property activity since the third quarter of 2004.
 
"There's been much speculation about a pending commercial property boom; here's further proof," added Schneider.
 
The two indicators have been designed to complement each other. Whereas the barometer tracks historical patterns, the index looks forward, Schneider explained.

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For more information contact Marc Schneider (011) 441-0377

Publisher: I-Net Bridge
Source: I-Net Bridge