In the past three months it has concluded several sizeable commercial and industrial letting deals in properties in its portfolio at extremely favourable rentals. The Johannesburg office portfolio, which consists of A- and B-grade buildings in central, convenient locations has recently benefited from several lets.

For example, it recently let 1 240m² to a well-known corporate in the newly-renovated Hurlingham Office Park at a gross rental of R105/m². It has also done two substantial lets for a total of 1,200m² in the refurbished Epsom Downs Office Park in Bryanston at around the same rental level - one of the tenants being listed construction company WBHO.

As little as three years ago, rentals at some of these office parks were in a range between R50 and R60/m2 gross.

And at Lincoln Wood Office Park in Woodmead, it has just let close to 1 400m² to an international telecommunications company at rentals close to around R90/m2 gross.
 
However, its biggest commercial letting deal by far in recent months has been the letting of 6,854m² to insurance firm Outsurance at its Lake Buena Vista development in Centurion. The deal was done at around the R95 to R100/m² gross and Outsurance took occupation in July.

The industrial letting market is also “vibrant” notes Emira CEO, James Templeton.

Emira recently concluded several leases – all in excess of 1 200m² - in two buildings in Corporate Park South and one in Paulshof at rentals of around R45m² gross.

Says Templeton:

“Upward reversions on new leases in the both the office and industrial letting market are running at around 15% at the moment – in other words well over and above the normal annual, contractual rental escalation.”

In both the commercial and industrial letting market Templeton says the buoyant letting conditions are merely a function of supply and demand fundamentals.

“Despite some negative factors, the economy is still performing well and tenants are looking for space, which is in increasingly short supply, he says.