PROPERTY: Randburgs Initiatives Auger Well for Commercial Property
Recent Gauteng Business News
Strategically well positioned to the north-west of Johannesburg, just 10 minutes from Sandton and easily accessible via main arterials such as the N1, Bram Fischer Drive, the M20, M9, M16, M5 and William Nicol Drive, Randburg is considered a priority area and important commercial node in the City of Johannesburgs five-year Integrated Development Plan and Johannesburg 2040 Strategy.Randburg comprises over 32 predominantly upper income residential suburbs and includes a wide variety of retail nodes and shopping malls, a light industrial area and a CBD the latter which experienced economic decline in the past as businesses relocated to new business and retail developments in areas like Cresta and Sandton, says Ross Hunter, leasing consultant for JHI Properties.
However, with municipal initiatives and interventions in terms of the renewal and upgrading of infrastructure and high intensity mixed-use developments, Randburg is expected to attract both new and former private investors. Improvements to traffic flow as well as the new Gautrain bus route and incorporation of the Randburg CBD into the Bus Rapid Transit system have further improved access to the area, he says.
Coupled with this, the Randburg Management District, which is a legislated City Improvement District, plays an important role in improving the nodes character through the provision of services which are supplementary and complementary to those provided by the municipality.
Hunter says as a result of such regeneration and improvement initiatives, Randburg presents an opportunity for both landlords and tenants, particularly companies that work closely with government departments such as the Magistrates Court, Department of Home Affairs, City of Johannesburg Municipal Office and SARS. In addition to these government operations other major tenants in the area include the likes of Sasol, Multichoice and Innovation Group.
For office tenants rentals in Randburg are very competitive, in the region of R50 to R70 per square metre with B Grade buildings generally between R60 and R70 per square metre and rentals below R60 per square metre being C Grade. Parking is generally available in the region of R350 per open parking bay and R450 for basement parking, he adds.
Positively, we are already seeing renewed interest in Randburg for example, in there has been an influx of colleges to the area, mainly due to the availability of public transport in and around the area, a factor which also provides high appeal for employers with a high staff complement, such as call centres, says Hunter, who has just concluded a lease in the area for KSS Cellular, which has taken up 1000sqm of space in the well-maintained Bridge on Bond, just outside the Ferndale area.
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