While there is a slowly-growing need for bigger industrial stands –and
bigger – feedback on the ground is that there is “currently definite
interest” in the marketplace for stands from 2000 square metres
to 3000 square metres, and at a price of up to R2 million.
This is according to Org Geldenhuys, managing director of
property developer and marketer, Abacus DIVISIONS.
“We are seeing this trend within in our own property portfolio
and in the property portfolios we are involved in with clients.
“These interested buyers are not big-time developers, but rather
owner-developers who are aiming to build their own warehouses. Some of these developers will buy say, a 3000 square metre stand and will ultimately take a portion of this space for their own needs -and then rent out the remaining space to two or three tenants.
“By doing this they have their own premises – and they have an income generating investment,” said Geldenhuys.
“This is good news for the market. People who have been reluctant to invest due to the recession of 2008-2009 are now gaining confidence. This rings positive bells for the commercial property sector.”
Geldenhuys said that while the office portion of the commercial property market should only start showing signs of growth in the second and third quarters of 2014, the industrial sector already started to show movement in late 2012.
Abacus DIVISIONS has seen what it calls “massive development” for industrial development in Sunderland Ridge and the Route 21 Corporate Park, in Irene.
“This,” said Geldenhuys, “is not just conjecture, it is based on what we are seeing on the ground, in terms of sales and inquiries.”
However, one of the factors that could play a negative role is increased consumption fees being charged by councils- and the heavy consumption costs from Eskom.
“These costs could, unfortunately, hold back real growth in the commercial property market. I have seen some council bills, within Abacus DIVISIONS’ portfolio, increase by as much as 300%.This is a horrific figure, and makes any recovery impossible.
“Essentially, what is happening, is that councils- who are unable to manage their finances due to ineptness – are coming after private enterprises to rescue them”
