Leases covering 443,320m2 expired during the year, while total lettings of 458,657m2 were concluded, resulting in a decrease in vacancies of 15,337m2, reducing vacancies from 11,2% to 9,5% of the portfolio.

Renewals on 302,084m² valued at R611,813,870 were achieved, and new leases were concluded on 156,573m² valued at R453,473,973.

ApexHi managing director, David Rice says the number of new leases being concluded is increasing year on year. In 2005, new leases on 115,715m2 were concluded, which accounted for 26% of total lettings. This year’s figure of 156,573m2 accounts for 34% of the total lettings. “While our primary strategy is to retain tenants, it is comforting to see that the increasing quality of the core portfolio is attracting new tenants,” says Rice.

Rice adds that ApexHi is signing new leases and renewing existing leases at higher rates. “We recorded a 27,5% increase in average rentals from R31.33/m2 in 2005, compared to R39.97/m2 for the period under review,” he says.

A total of 1,411 leases were signed between July 2006 and June 2006. “Our leasing team has been extremely busy, signing an average of five leases a day,” he says.

ApexHi’s strategy to focus on the tenant rather than the location is paying off. The company considers several factors before acquiring a property, such as type of tenant (A-grade), length of lease and likelihood of renewal.

Publisher: ApexHi Properties
Source: ApexHi Properties