Great potential for industrial property sector

Posted On Friday, 26 April 2002 10:01 Published by
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Old Mutual Properties says the industrial property sector offers great potential for growth
The industrial property sector offers growth potential, Ian Watt, managing director of Old Mutual Properties, said on Wednesday.

He said bigger users were looking for premises better equipped than what were on offer in the market.

'This is leading to select developments, notably for owner-users, and increasing opportunities for redevelopment in older, industrial areas.'

Watt said owner-users were using the services of Old Mutual Properties' development arm for several projects, with two, one in Roseville Park, Pretoria, and the other in the Tokai-Retreat node in Cape Town, scheduled for completion before year-end.

'Conditions prevailing in the industrial market are in contrast to those in the office sector.

'There, an over-supply in some areas has resulted from indiscriminate zoning and construction and office incursions into prime residential areas have eroded values of neighbouring homes.

'The discipline of building to demand is at least apparent in the industrial sector. '

Watt said that while newer nodes with land availability such as Midrand in Gauteng and Montague Gardens in Cape Town offered
opportunities for development, longer established areas offered interesting prospects as well.

'An example is Paarden Eiland in Cape Town.  Some buildings there have become obsolete, but the factors that made the area a pre-eminent industrial area - such as good location  and access to the port and arterial routes - continue to exist.

'It would be unwise to ignore areas such as these for redevelopment and overlook the opportunities for regeneration that have occurred in the office sector. '

He added that prime industrial rentals in South Africa were cheap when compared with those in other economies.

Sapa
 


Publisher: SAPA
Source: SAPA

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