While the warehousing market is showing signs of rapid growth, there is a concomitant trend that sees the bulk of these warehouse developments being paid for by owner –occupiers – which signals the possibility that faith is returning to the commercial property market.
This is according to Org Geldenhuys, MD of property development and marketing company, Abacus DIVISIONS, who said his company had recently sold 7 parcels of land in one week – with all of these stands earmarked for warehouse developments. “The other interesting point is that all of them will be developed by the owners themselves. These are not speculators trying to find a gap to make money – it is owner occupiers who have decided to invest. It shows growing faith in the marketplace,” said Geldenhuys.
“All 7 stands are earmarked for a single tenant occupancy, indicating that the market is being driven by organic growth and not by developers trying to make a quick buck.”
Once developed the total investment in the 7 stands should amount to around R120 million – with building expected to be completed during the first quarter of 2014.
“The year started slowly, but now we are seeing some signs of real movement. People are showing a keenness to invest money in their own premises – and this has been lacking during the past few years. We haven’t fully recovered yet from the deep-cutting financial crisis of 2008, but I think the worst is over – certainly for the commercial property market.” The stands are located in Irene, which is fast becoming the new business hub of the greater Centurion area.