Wednesday, 06 June 2012 11:14

Graham Marder


"eProp is the one property site that I encourage my brokers to check in with regularly. It has all the latest relevant Property articles to stay in the loop. We have also generated worthwhile leads from our listings on eProp. Keep up the great work!"

Graham Marder
CEO. Marder Properties

Published in Testimonials

Looking back at the annual total returns for commercial property as measured by IPD, we see that the 10.4% recorded in 2011 is somewhat disappointing and speaks to the double-dip notion that economic commentators alluded to back in 2009/10. As such this return is then actually not surprising. Perhaps more importantly are the drivers of returns as reflected in the first graph below; in particular the flat net income growth and more specifically the disparity between the growth in income vs. costs. This is also reflected further below showing how Net Income is a function of Base Rent + Fixed Recoveries + Variable Recoveries – Operating Costs and whereby the latter two aspects have grown in proportion.

In a select poll run by IPD concerning the outlook for 2012, 74% of respondents anticipate an improvement on 2011’s results and 24% anticipate a deterioration.

The eProp Commercial Property Confidence Index (CPCI) conducted over February/March 2011 polls industry expectations regarding business conditions for the next six months; the following is noted:

The eProp Commercial Property Confidence Index reached an aggregate level of 52 in March 2012. This is the first time since March 2008 that the index has broken the neutral 50 mark and speaks to a slight improvement regarding the outlook for the sector overall (see graph below). We will look at the eProp CPCI in further detail in our next edition.

Published in Blog

In our last edition, we discussed that the eProp Commercial Property Confidence Index (CPCI) conducted over February/March 2011 and polling industry business expectations for the next six months, reached an aggregate level of 52 in March 2012. This is the first time since March 2008 that the index broke through the neutral 50 mark and speaks to a slight improvement regarding the outlook for the sector overall

By property sector and on a net-balance basis (spanning a range of +100 to - 100 and where 0 is neutral) the retail property sector has the best outlook (+7), followed closely by industrial (+4) and then offices at 0. For retail the steady path back to a more positive outlook can be clearly seen in the graph below. For offices and industrial the trend is perhaps  a little more volatile which speaks to the level of uncertainty belying fundamentals generally and as compared to retail where the sentiment has perhaps been more  closely informed by the consumer-based macro economic cycle.   

      

In terms of the business issues contributing to the CPCI index, we see that the more positive outlook is influenced by a firmer expectation around the number of anticipated sales and leases volumes, as well as growth in the values attached to these.  Encouragingly, on balance and for the first time in a long time, growth in expected staff complement is slightly positive.

Whilst gross rental value is expected to grow, it is clear by the deterioration in Net Income, that costs remain a major bugbear to the commercial property environment. A deterioration in Cap rates is expected which in turn could account for the more bullish outlook regarding acquisitions. Still representing the biggest concern for the sector, is the net balance of 41% of respondents anticipating that their concerns around local government issues in which their assets are located in, will increase. Presently and over time, it also appears that the concerns in Gauteng are not necessarily worse than for example the Western Cape, though of course this is relative as the comparative level of service  is not benchmarked.

Published in Blog

According to a recent report by Jones Lang LaSalle (JLL), focusing on Johannesburg, the commercial market is “beginning to favour landlords in the prime office accommodation as they are beginning to achieve asking gross rentals and reduced vacancies albeit limited speculative completions”.

The graph below shows the ratio of unlet new office space to total new space. The general trend has been one reflecting a lowering ratio, however in the case of Durban and Johannesburg, the ratio has increased. In Durban's case it is more a function of new space being absorbed into the mainstream market, whereas in Joburg's case the amount of new space on the market (just over 358,000m²) has increased to its highest level since Q3 2009. With the ratio of unlet new space at just under 60% - whilst not that high by historical perspective - could still negatively impinge on the overall vacancy rate going forward.

According to JLL nevertheless, investors are still conservative in committing to new speculative developments due to uncertainty, suggesting that speculative developments represent about 36% of the pipeline in the next 2 years. With all the committed construction activity in the Johannesburg area, office stock is expected to reach over 8,6 million m² in 2012 and 8.8 million m² in 2013.

JLL indicates that Sandton and Bryanston continue to be nodes of choice for office accommodation where heightened activity was noted during Q1 2012. Large deals in the market during in this period are the take up of over 16,000m² by the law firm CLA Cliff Dekker in Sandton and the 3,000m² office lease by Huawei Technologies SA in Bryanston.

Published in Blog
Wednesday, 13 June 2012 00:00

Welcome to eProp 2

Welcome to the new eProp site Beta version. eProp is the original and definitive commercial property market place serving the SA Real Estate market for the past 10 years with relevant and useful market news and industry information, further supported by unique research, intelligence and insight capacity.

The objective behind eProp’s redevelopment has and will continue to revolve around adding value to you our clients and users. We have totally modernized the look and feel of eProp thereby improving the general user experience; we are also increasing the functionality and tools available to registered users/companies, and are also increasing and improving the offering to advertisers in general. At this stage eProp has news, jobs and property listing/searching sections and over the course of the next few weeks other exciting modules and functionality will be added.

Advertisers and businesses will no doubt find more reason than ever before to engage the eProp opportunity comprising over 25, 000 subscribers/readers/users.  We are tremendously excited about taking hands with the property market in SA and look forward to a new mutually beneficial journey together with all our existing loyal clients nurtured over the past 10 years, as well as welcoming new clients and friends into the fold. We are also thrilled about a number of ground-breaking eProp related initiatives within the publishing, employment and broking arena that will capture industry attention. We encourage you to look at some industry testimonials on our new home page regarding eProp.

Published in Blog
Tuesday, 05 June 2012 11:05

Neil Vorster

“I have been ‘in property’ in South Africa for 22 years. My company, Targer Properties, is currently involved in Commercial, Industrial and Residential property management, property investment and all facets of property broking activities.

 

eProp has been an invaluable information and marketing resource for my company over the years and I believe they will go from strength to strength in the years to come”.

 

Neil Vorster

MD, Targer Properties

Published in Testimonials
Tuesday, 05 June 2012 11:02

Tshepo Makhudu

"eProp is the premier property website in South Africa and I make a point of visiting it every day for real knowledge and some inspiration. Many do try to copy it, but none get close. I am very much looking forward to the new interface and remain convinced that it is going to pick straight up from where the last one left off" - Tshepo Makhudu (TFMC)

Published in Testimonials
Tuesday, 05 June 2012 10:37

Rob Boersma

“eProp has proven to us that it is the foremost and best commercial property website in South Africa. It is a great tool for both lead generation as well as latest updates relating to our industry. Information is key in our business and being a portal partner on eProp has added the necessary value for us to excel in what we do best.” 

 

Rob Boersma

Managing Director, Keystone Properties

Published in Testimonials
Tuesday, 05 June 2012 10:31

Brian Kirchmann

“I have been receiving the eProp newsletter for some time and have always found it not only interesting but to the point, very up to date and extremely informative.

 

I sincerely hope you keep up the good work in the interests of the entire Real Estate Industry in South Africa. Well done”

 

Brian Kirchmann,

Avian Management Services (Ex CEO SAPOA)

Published in Testimonials

Despite improvements to Century City's vacancy rate, concern at city level still persists. That being said, Giles Balmer of developers, Rabie Property Group, maintains that sales and lettings in phase two of Central Park, the Courtyard precinct, have gone well and has spurred the group on to launch phase three shortly

Page 2 of 3

Most Popular

Tshwane Regional Mall Grand Opening date set

Aug 31, 2019
  TSHWANE REGIONAL  MALL
24th October 2019, the long-awaited day earmarked for the grand opening of Tshwane…

Attacq Ltd and Tricolt break ground on Ellipse Waterfall

Aug 30, 2019
 13 2
Today Attacq Ltd the JSE listed REIT developing Waterfall City, and Waterfall Logistics…

Founder Marc Wainer retires from Redefine Properties

Aug 31, 2019
 MARC WAINER
JSE listed diversified real estate investment trust Redefine Properties today announced…

Redefine Properties appoints Daisy Naidoo as independent non-executive director

Aug 30, 2019
 STRATE 1
Redefine Properties appoints Daisy Naidoo as independent non-executive director.

Eris Property Group appoints successive CEO Barend de Loor

Aug 30, 2019
 BAREND DE LOOR
Eris Property Group has appointed a new Chief Executive Officer (CEO). Barend de Loor…

Please publish modules in offcanvas position.