Exiting times with a push toward service delivery.

1) Despite the current high replacement costs of buildings, Philip Venter of Diamond Properties feels that it is an exiting time for prospective sellers in the Existing Properties market as well as the booming New Development market. User owners in particular are moving toward purchasing premises in the current market despite the fact that yields on New Developments might suggest that rental appears to be the more cost effective option. Building to a client’s specific requirement to ensure that the client can deliver the best possible service of his clients combined with good accessibility and security seem to supersede the need to save a few rand per month.

2) Security on New Developments has also lead to a huge push toward previously less popular locations, where security was a concern, but accessibility has always been good. Rentals in these Secure Parks are touching the R40-R45/m² mark and Selling Prices on these Developments start at around R6, 000/m². The demand for vacant land is very high and these prices start from around R1, 250/m².

3) Popular locations include Airport City, Epping and Capricorn Park. The new developments are of a high standard with Architectural Guidelines ensuring uniformity and scope for the combining of warehousing, manufacture and top grade offices in these parks. Blue chip tenants/owners have affectively combined these to ensure better control of their businesses as well as savings on their office component.

4) With the proposed road approvals in the pipeline the “Lansdowne Corridor” (which includes Phillipi and Wetton areas) is also experiences major interest in the purchasing of land and New Developments which would connect the current Industrial areas in the Northern and Southern Suburbs.

5) With the movement toward these New Developments existing buildings have come on the market at ultra competitive prices if one looks at replacement costs of these stand alone buildings, as well as existing high power output capabilities. This makes these buildings attractive to user owners or investors who have these specific criteria.

For these kind of enquiries or any other Industrial needs please contact Philip Venter of Diamond Properties on 082 402 9615 or philipv@diamondproperties.co.za