A lack of new business growth is keeping the office property market in the doldrums, according to a report released on Monday by global real estate services firm Jones Lang LaSalle.

Vunani Property Investment Fund acquires Bryanston Gate office park for R174m.

Growth in the property market will come from smaller offices and sectional title offices

Growthpoint Properties today announced it will acquire Abseq Properties (Pty) Ltd, which owns and manages a portfolio of 17 high-quality office properties in northern Johannesburg and Woodmead.

Weak economic growth has seen the office market muddling along, with overall vacancies still high, particularly for older stock and secondary areas, with rental growth stagnating in large cities.

The Green Building Council SA (GBCSA) has taken up residence at its inspired new green office at the Blackriver Park complex in Observatory, Cape Town.

Broll Property Group was the broker firm that secured the most new deals across South Africa by value for Growthpoint. 

A weakening demand for office space as well as sluggish growth in market rentals are on the cards, says Erwin Rode, professional property valuer and property economist at Rode & Associates.

Increased commitments to development projects are concerning as they may add to the current rising vacancies in the midst of slow demand for office space.

Taking advantage of low vacancies in premier office space and banking on a slowly improving global economy, speculative office developments are starting to rear their heads again after five years of a lull in activity.