Rising petrol prices and traffic congestion are said to be among the reasons behind the increased popularity of decentralised mini office parks.

"The niche market in greatest demand is for buildings from 600m² to 1,000m² that appeal to small enterprises," says Roy Lazarus, of Park Village Auctions.

"Their market appeal has been enhanced by rising transport costs, traffic congestion and the need for easy accessibility."

He says new and existing developments of this nature offer alternatives to converted residential properties, particularly if they are already sectionalised.

Lazarus defines ideal mini offices as clusters of low-rise structures, high-quality landscaping, complementary but not identical architecture, water features, car parks, good security and selfcontained amenities.

"The profiles of these developments obviously vary, but typically include offices, restaurants, shops and other services with a community feel. Centres such as these are proliferating."

Neville Schaefer, chairman of Trafalgar, says SA's stock of sectional title buildings is ageing and many need to be demolished or radically renovated, but the Sectional Titles Act makes it almost impossible to get owners to agree.

"The Sectional Titles Act has been law for 35 years, but the lawmakers don't seem to have allowed for buildings getting old and decrepit.

"Demolition needs 100% of owners to agree, as do so-called luxurious improvements.

"Other major renovations need at least 75% of votes at a special meeting."

He says many old buildings are in serious decline and these are not only in poor or distressed inner-city areas.

Schaefer says in most cases a building with a single owner or some partners would respond to market changes and sell or redevelop, but many sectional-title buildings have either elderly owners or younger ones who have limited money and resist change. They would all automatically oppose radical action.

He says a possible solution is that owners, or banks that have given home loans to owners, could apply to court to appoint an administrator who would have the necessary power to make a decision to demolish, but he doubts that a court would agree if the building is financially sound and adequately managed.

"Another solution could be for a municipality to declare a building unsafe or unhygienic and order its demolition, or expropriate it where the land is worth more than the units."

Schaefer says all cities have these buildings.

"Age isn't the only criterion. The biggest problems appear to be post-war blocks built with inferior materials and sloppily-erected flats and townhouses from the 1980s."

Properties built on what was secondary land 30 years ago are now on prime land that should be redeveloped, he says.

"Our lawmakers should consider allowing a simple majority vote where buildings are very old and in bad condition, but I can't think how you could regulate that to avoid abuse. It is going to become a major problem as the years go on," says Schaefer.

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