Business Day Reporter

LISTED property loan stock company Metboard Properties, which is managed by Investec Property Group, says the retail sector boom is contributing to the robust performance of industrial property.

Tyrone Govender, executive director and fund manager of Metboard, says in addition to increased manufacturing activity, industrial property also benefits from the enhanced performance of retail warehousing.

The growing category of industrial property, known as retail warehouses and motor-related properties, comprises motor showrooms and related product retailers, tile and bathroom showrooms and factory outlets.

He says that in most cases warehousing is situated in well-exposed locations and results in the growth of nodes, with related retailers.

"These are largely destination retailers that benefit from upswings in the retail sector.

"These tenants also have the advantage of higher turnover scenarios as a result of comparatively lower rentals," says Govender.

Retail warehousing rentals are relatively higher than other types of industrial property, but are still significantly lower than rentals charged in shopping centres.