Business Day Reporter

TSHWANE office vacancies have fallen to 4% overall, and for the first time in many years demand is outstripping supply, according to property group Broll’s latest quarterly report.

Broll says vacancy levels in the Tshwane central business district have declined to such an extent that there are few premises offering large spaces to potential tenants.

"This has been mainly driven by government, parastatals and associated businesses, which have taken up large tracts of buildings," says Broll.

"Gross lettable rentals are in the region of R20/m²-R39/m²."

The group says the crime rate has dropped dramatically with the implementation of a closed circuit television camera system.

It says the reduction in crime has led to renewed optimism in the area and has had the positive consequence of a take-up of converted residential buildings in the centre and western side of the city.

Broll says that across the Tshwane metropolis, property has benefited from low interest rates, resulting in tenants becoming prospective owners.

However, the group says there is now a critical shortage of stock for sale as owners and landlords prefer to hold onto their properties and are looking to buy further property.

It says rentals in Brooklyn are rising to R75/m² for existing space and R85/m² for new developments.