Gauteng industrial property in buoyant mode

LIKE THE residential property market, the industrial sector has been in buoyant mode. According to the industrial broking team at Colliers International, the end of 2003 saw a big increase in the demand for industrial space, while 2004 started off strong but ended the first quarter with a slight decrease. Northern Johannesburg, including Midrand, Long Meadow and Linbro, has attracted a number of smaller tenants who have opened up new businesses with space demands ranging from 500m2 to 1 000m2. “Most of these tenants are owner-occupiers encouraged to buy their own properties with the strong rand and low interest rates,” says a Colliers spokesman. Good news for Long Meadow was the opening of a new off-ramp that helped to ease congestion problems in the area. The development is sold out, with rentals in the area ranging from R34m2 to R45m2. Land prices in the area range from R240m2 to R350m2. According to Colliers a new node will be launched soon. Industrial areas around the city centre are being refurbished and demand for owner-occupier space is growing as private investors look for good opportunities.