A R250m office development is being planned for Modderfontein, northeast of Johannesburg. The 30000m² development, which will be rolled out in phases, will be developed on land formerly owned by AECI.

There has been a host of residential developments in the area and two retail centres are being planned or are under way.

The Modderfontein office development will be developed by Barrow Properties, Vunani Properties and Sherratt Property Ventures. Barrow Properties executive director Paul Barrow says no tenants have yet been signed.

It will be a phased development driven by tenant demand, he says. “It won’t all come on to the market at the same time.”

While the development is being carried out on a speculative basis, the developers believe “strongly” in the area’s potential. “We expect it be a fast-growing node in the Johannesburg area.”

Barrow says the office market in general has improved, with excess space having been mopped up to a large extent.

“There is a low office vacancy level, which makes the development of offices viable.

“One needs to stress that when we develop speculatively, it is on a conservative basis.

“We haven’t yet come out with a site plan or scheme yet but we hope to have something by the end of the year.”