Nearly all these buildings will be high-rise with some zoned for mixed-use, which could see increased integration of retail, offices and apartments in the area, following the new-urbanism style of design which is becoming increasing popular.

With a substantial increase in Sandton office rentals expected, will it be possible to fill this much space? Director of Broll Property Group's Gauteng commercial division Fran Teagle believes that it is possible.

“Sandton is extremely popular right now and is experiencing the highest demand for office space. It has become an important location for the financial sector. Bigger companyies also like the location,” explains Teagle.

Importantly, full back-up electrical generation (not just emergency power) and, in some cases, even reserve water tanks, are standard in Sandton’s prime grade offices.

Based on existing tenancies, accountants and attorneys are amongst those most likely to head for Sandton’s new office space. Growth in the Sandton tenant base is also likely to come from companies which merge and require large, high-tech consolidated offices. Teagle also foresees that Sandton will continue to be the location of choice for international companies.

In addition to the robust demand for offices, high land and building costs will continue to push up Sandton office rentals. From today’s gross rentals on new and existing A-grade office space in Sandton of some R125p/m2, Teagle anticipates levels to reach between R175p/m2 and R210/pm2 in 2010.

However, Teagle advises that shrewd companies, which plan their office premises well in advance, may well be able to temper these rental increases.

“Some developers will not undertake speculative development but rather wait for a tenant. In conjunction with these developers, a tenant could have input into the style of premises, design elements and finishes,” notes Teagle. “More importantly the company will be able to fix rentals at a much better rate if done now than if they wait for a premises to be constructed and then commit.”

Teagle points out that businesses requiring space of about 10,000m2 usually think ahead in terms of premises. She advises, however, the businesses seeking offices of 2,000m2 can benefit from following this same prudent practice.

Developers and landlords undertaking this kind of ‘tenant-tailored’ office development will require a minimum of a 5-year to 10-year lease, depending on the size of the premises and uniqueness of tenant requirements. The lease may contain a review of rent or escalation rate during the period.

But, when it comes to offices in Sandton, thinking ahead is key in this competitive market. “Demand is good in Sandton and deals are already being signed on buildings still to be built,” says Teagle.