PROPERTY: Older Buildings Lagging Behind New Buildings
Recent Gauteng Business News
So said Org Geldenhuys, managing director of Abacus DIVISIONS, the property development and management company active in a number of key office parks in the Irene/Centurion area, including Route 21 Corporate Park and Highveld Technopark.
Older buildings are not attracting the same rentals as new buildings and new office park developments and this is unlikely to change in the foreseeable future. Although tenants might arguably pick up bargains if they opt to rent older buildings, more discerning businesses are definitely tending towards newer buildings and are prepared to pay up to 20% more in many instances.
We are also noticing a bigger demand for warehouse space with almost no warehouse space, for instance, available at Route 21 Corporate Park.
He said with more of a demand for warehousing space, areas such as Hennopspark - which offers affordable warehousing space are becoming more sought after.
But, certainly, property owners sitting with older buildings or older property portfolios need to look at upgrading and refurbishing if they expect their rentals to keep up with those being received for newer, more modern, buildings.
Rentals are expected to rise again during the fourth quarter, but owners of older buildings will be hard-pressed to receive much in the way of escalations, said Geldenhuys.
Business News Sector Tags: Property|