KEVIN MAYHEW
OWNERS OF smaller freight and logistics companies are taking advantage of low interest rates and opting to buy premises while bigger companies choose to lease them, according to Hayley Rubin of Colliers International.
“Space occupied by larger companies is directly linked to contracts and it makes it easier for them downsize or expand when necessary if they lease,” Rubin explains.
The majority of small freight companies requires mini-warehouse space of approximately 300m2 when they start out. In general, larger freight companies require large space with good stacking heights, sufficient loading facilities and large yard space with easy access for trucks and other transport vehicles
Increased demand
The demand for industrial development in Johannesburg has increased over the past six months and Rubin predicts that space demand will continue to rise until the end of the year. The present demand for space is mainly for premises in excess of 1000m2.
The most popular areas for freight companies are:
Pomona - has shown strong growth as an industrial node over the past 20 months and new infrastructure upgrades in the area should continue to make it attractive.
Meadowdale - an established area with many owner-occupier driven developments with a low vacancy rate.
Jet Park - still enjoys consistent occupancy rates and rental levels. The extensive commercial and office development close to the East Rand Mall and the infrastructure developments currently underway will support the whole area as an important industrial and commercial location close to the Johannesburg International Airport.
The Airports Company has plans to develop industrial sites within the Johannesburg International Airport precinct for specialised users. This will create additional interest in the area for other service providers, probably with a high content of transport and freight handling companies, Rubin concluded.
