The demand for commercial property in Johannesburg’s northern suburbs is at an all time high, with vacancy rates as low as 5% in Sandton and Rosebank.

Fran Teagle, Director of Commercial Property at Broll Property Group, comments, ‘Even though demand is strong, supply will meet it in the next two years, with in excess of 150 000 square metres of new commercial space in the Sandton hub scheduled for completion in the next two years. This new space is in addition to around 50 000 square metres of refurbished space that will be available shortly, the combination offering accommodation for some 10 000 additional workers in the Sandton CBD,’ she says.

Growth in the area has been different to years gone by, she notes. ‘There’s been somewhat of a buying frenzy, with developers clamouring for scarce vacant land, and then erecting new buildings or refurbishing other existing properties on spec – a bullish approach to the market which has been fuelled by low interest rates. The strong property values in the area have also meant that many companies are buying existing buildings or turnkey space to suit their own requirements, leading to a higher ratio of owner-occupiers than before.

‘It’s not only purely commercial space that is changing the landscape of the CBD,’ Teagle points out. ‘Although mixed use buildings are fairly common in Europe, we haven’t seen these kinds of spaces built in the Northern Suburbs before. At least two major blocks are planned for the near future that offer limited retail space, topped by up to twenty stories of commercial space, above which a further six to ten floors of residential accommodation will be built. Blocks such as these, along with the numerous residential developments along West Road South, will mean that people can live, work and play within the Sandton precinct.’

For those who prefer close proximity to the heart of Sandton but seek a different environment, Bryanston, Woodmead and Sunninghill also offer excellent solutions. ‘Space in these areas is also at a premium, achieving rentals in line with rates in the Sandton CBD,’ Teagle observes. ‘Sunninghill particularly is an appealing option, with infrastructure in the area currently being improved, alongside excellent retail developments and the substantial growth of residential property, again making it easy for people to conduct all aspects of their life within a small geographical area.

‘What excites me most about the property industry at the moment, is that although there are not really any radical events influencing trends, the industry is consistently active, with people back in the ground building – a great signal for South Africa’s continued growth,’ she concludes. 

For further information: Fran Teagle
Tel: 011 441 4496 / 083 443 0364

Issued by: Cullum Johnston
Imbongi Communications
Tel: 021 461 1705 / 083 500 8144