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Increase in Industrial Rentals Good News For SA Corporate

Posted On Friday, 06 July 2007 02:00 Published by eProp Commercial Property News
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Rental upliftment on new industrial leases signed by SA Corporate Real Estate Fund in the six months to June 30 is very encouraging, says Craig Ewin, CEO of SA Corporate

Craig EwinEwin says that five major industrial leases concluded in Gauteng for warehouse space of 1 800m² to 8 000m² saw rental increases of 12,5% to 30% while in KwaZulu-Natal, increases ranged from 16% to 47%, on five leases for industrial space between 2 200m² and 10 000m².  Rental upliftment on these leases was a weighted average 28%, some 12% ahead of budget.

“These increases have brought rentals on the premises in line with the market which is seeing gross rentals of R40m² being achieved for better quality industrial space with the R50m² mark being seen for prime new industrial developments.

Annual escalation rates are also on the rise as a result of the limited availability and demand for quality premises and the impact that this having on rental growth.”

Ewin says the healthy increases in rentals in the industrial sector underscore strong economic fundamentals and demand for well located distribution and warehousing facilities.

“SA Corporate’s industrial portfolio continues to perform strongly with vacancies of less than 0,5% of lettable area,” he says.

SA Corporate Real Estate Fund will increase the industrial component of its R7 billion portfolio to 33% through the R1 billion acquisition of 40 properties from the Collins Property Group.

Last modified on Thursday, 24 April 2014 10:23

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