Light industrial prospects bright in southern peninsula.

Posted On Sunday, 03 November 2002 10:01 Published by
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IMPROVED access, relatively low crime levels and an assortment of industrial opportunities have revitalised the Southern Suburbs as an option for light industrial and clean manufacturing enterprises, says Broll Property Group director William Wakefield.
IMPROVED access, relatively low crime levels and an assortment of industrial opportunities have revitalised the Southern Suburbs as an option for light industrial and clean manufacturing enterprises, says Broll Property Group director William Wakefield.
 
The recent improvements to the M5 highway and the proposed extension of the R300 are two catalysts that have invigorated growth, he says.
 
Wakefield described the Westlake development zone - close to Silvermine - as a perfect example of residential, office, retail and service industry and light industrial applications working harmoniously together. 
 
'From a slow start, the area has gained momentum and now enjoys rapid growth fuelled by the success of Reddam School and the zone's position within the upmarket residential Constantia Valley - in particular the Silvertree development,' said Wakefield. 'Westlake's position as a sought-after node has been given impetus with the decision by the United States to locate its soon-to-be-built consulate complex in the area.'
 
Another factor attracting businesses to the southern suburbs is the relatively low crime level, aided by the fact that most of the industrial areas are surrounded by middle- and upper-income housing developments.
 
The retail expansion of Blue Route Mall has also sparked activity in industrial properties. Nearby industrial developments have experienced a tremendous growth in rentals, spurred on because of a shift to retail opportunities. The entire Retreat node has been experiencing solid growth.
 
Broll Southern Suburbs Area Specialist Jon Bloom added: 'Favourable export conditions - fuelled by a decline in the rand and expanded access to US markets - have seen a resurgence in manufacturing with a number of unoccupied factories, designed specifically for use by the clothing sector, now returned to their former glory.'
 
The demand for space had encouraged new development but recent interest rate hikes have tempered this in the short term. However, the trend towards owner-occupied buildings continues as the differential between rental levels and mortgage payments remain minimal.
 
'While there are generally limited undeveloped land parcels available, a selection of interesting development opportunities do exist,' said Wakefield.
 
'This is particularly applicable to the Diep River and Retreat areas as well as the Lansdowne Corridor, extending from Wetton to Philippi.'

Publisher: Weekend Argus
Source: Weekend Argus

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