Market confidence attracts investors

CONFIDENCE IN the market combined with good returns has seen more and more businesses over the past six months investing in industrial property, according to property specialist Colliers International. “The newer industrial nodes around Johannesburg have set very high building standards resulting in higher rentals based on high building costs, which makes it a secure investment,” says Colliers’ Gary Frodsham. “Firmer rentals have been a feature of the past six months, with strongest growth in Midrand, Linbro and Longmeadow, where levels of R32 - R45/m2 (gross) have been achieved on deals. “The highest recorded figure of which we are aware is R48/m2 in Longmeadow, while the only areas consistently registering more than R25/m2 are Linbro, Midrand, Longmeadow, Kya Sand, Strydom Park and Cambridge Park.” Most tenants are looking for properties in the 500 - 1000m2 range, according to Frodsham, although enquiries for larger space have been recorded. “At the lower end of the scale - 150m2 and less - there are a number of enquiries, but little accommodation to satisfy this demand. Clearly there is a gap in the development market.”