‘Steady increase in property enquiries’

The massive highway upgrades in and around Gauteng are sure to have a spin-off for developers and landlords, says Stefano Contardo, development executive for Improvon Developments. Currently developing the N1 Business Park situated on the N1 highway just north of the Samrand off-ramp, Contardo says the upgrades in Gauteng will also benefit transporters, distribution and warehousing companies, hopefully influencing decision-makers to move to strategically placed parcels of developable land. “The trend at present is to build industrial, retail and commercial parks where tenants can operate from a secure park-like environment where maintenance, landscaping and security are managed for them,” says Contardo. “Continued infrastructure spend is essential in sustaining growth in our economy which translates into business opportunities for all.” No doubt a necessity following the 2009 recession. “Since January there has been more of an increase in enquiries as opposed to 2009. However during the World Cup enquiries decreased as few were in a business mode,” says Contardo. “We have seen a steady increase in enquiries again, more so in August 2010. The market is, however, still very sensitive and most companies are hesitant to make offers.” He believes what sets Improvon Developments apart from its competitors is that they do not build tailored industrial buildings for sale, but rather for rental. “Most of our clients are on five to ten year leases, hence we did not feel the recession as badly as most companies. Having said that the market is still expecting a backlash from the recession and therefore we have to market the properties well before the expiry of the leases. We expect a small upswing in the remaining months of the year, however a full market recovery is a long way off.” Contardo says in Gauteng the commercial/industrial property market has many vacancies at present. “These vacancies are driving rentals lower on a daily basis. Potential tenants have a wide choice of properties from which to select and are able to negotiate very attractive rental rates. Location and quality of building finishes are secondary selection criteria at this stage,” he says.