21 Feb 2006

THE last 12 months has been an unprecedented year of activity in the commercial and industrial property sector.

Dave Russell, director of Baker Street Properties commercial division says; "In the commercial sector office vacancies are down to levels last seen in 1998 and in the industrial sector the value of land has more than doubled in the past 12 months."

"The latest SAPOA Office Vacancy Survey confirms that the continuing trend of decreasing vacancies in all nodes is resulting in increased rentals which will inevitably be followed by new office developments."

"Exceptional reductions have been experienced in the southern suburbs where Claremont has seen 'A' Grade vacancies of 32.2% in 2004 reduce to 4.3% and combined Premier, 'A' and 'B' down to 5.8% today. In Rondebosch / Newlands 'A' grade vacancies of 19% in 2003 have reduced to 0.7% today."

Russell adds; "The Cape Town CBD continues to enjoy the downward trend with 'A' grade reducing from 10% in 2004 to 4.3% today. During the same period 'B' grade has fallen from 15.2% to 8.2%.

"This reduction has been assisted by a number of conversions to residential, a trend which appears to have eased, however. All cranes on the CBD skyline are on new residential developments which will come on stream over the next year."

"The consistent demand for offices in the V& A Waterfront is reflected in the limited office space available in this world class facility. The announcement of new office developments in the Waterfront is expected soon as rentals achieve levels which make new schemes feasible."

"In the North, landlords of 'A' grade offices in Century City have enjoyed seeing their vacancies reduce from 13% to 1.1% in the past year and in Bellville combined vacancies in Premier , 'A' and 'B' are now down to 3.8%," says Russell.

Andy Beddow, director of Baker Street Properties industrial division, comments; "The industrial sector has also seen vacancies plummet resulting in rental increases in all industrial nodes. This trend is expected to continue in 2006 as demand continues to outstrip supply."

"The demand from investors and owner occupiers to purchase property has been hard to satisfy, however, Baker Street is now able to provide the market with several exciting opportunities for purchasers."

"Sales of large industrial properties which we negotiated late last year including both the Old Lion Match Factory site in Observatory and the Epic Oil site in Ndabeni, are to be redeveloped and sold on sectional title."

"The two sites are ideally located and these superb schemes will go a long way to satisfy the demand from both investors and users."