Latest News

Growthpoint Properties delivers half-year distribution growth of 7.5%

Mar 04, 2015
 Norbert Sasse
Growthpoint Properties Limited today reported distribution growth of 7.5% for its six-month interim period to 31…

Nedbank Corporate Property Finance funds R69m for first phase of Secunda Value Centre

Mar 04, 2015
SecundaValueCentre
Nedbank continues its commitment to the development of areas outside South Africa’s major centres, this time in…

Octodec Investments redevelopments worth R537m contribute to Pretoria CBD…

Mar 03, 2015
Jeffrey Wapnick
JSE listed REIT Octodec is undertaking two new exciting development projects, 1 on Mutual and Centre Forum, for a total…

Aucor Property to auction regional retail shopping centres

Mar 03, 2015
Umlazi
Aucor Property will hold its next commercial property auction on the 17th of March 2015 at the Park Hyatt Hotel at…

Texton Property Fund acquires properties in the UK for GBP15,24m

Mar 03, 2015
 Rob Kane
Following the release last week of excellent interim results which gave shareholders distribution growth of 11.7%,…

Dipula Income Fund grows its portfolio by R336m

Mar 02, 2015
Izak Petersen Dipula
JSE-listed REIT Dipula Income Fund announce it has entered into Agreements to acquire UMzimkhulu Shopping Centre in…
Wednesday, 20 March 2013 12:37

Office space under pressure in year ahead

Written by  eProp@News
Rate this item
(0 votes)

Property pundits agree that office property will remain the problematic sector in the next 12 to 18 months with dominant retail centres likely to be the best performers.

Vukile Property Fund CEO Laurence Rapp believes that — consistent with last year — the market will continue to "see the office property sector under pressure".

While Rapp believes the performance of the industrial property sector will continue to improve, retail property will continue to be "the preferred asset class given its growth potential but inherently defensive nature".

Redefine Properties CEO Marc Wainer believes the pressure in the office property sector will be particularly felt in the older B-grade property arena. Wainer says it becomes much more difficult to let B-grade space in the current market because newer A-grade rentals are flat. This results in A-grade rentals being more affordable and consequently there is less incentive for prospective tenants to move into B-grade space.

As for new office property space being developed, Wainer says: "Anything being built now is being built specifically for tenants." He says there is little in the way of premium office properties coming onto the market on a speculative basis.

Redefine is, however, developing a 20,000m² office building in Sandton.

Wainer says retail property is "still pretty strong, particularly in the larger centres", adding: "We’ve seen major retailers are still doing well, expanding their retail footprint."

He says industrial property is strong and there are good signs in distribution warehousing.

Growthpoint CEO Norbert Sasse says he sees the office property market remaining the weakest of the property types in the next 12 to 18 months, especially given the muted economic growth outlook in Finance Minister Pravin Gordhan’s 2013 budget. Gross domestic product growth at about the 2.7% level is predicted for 2013.

Sasse also warns the market is seeing a slowdown in consumer spending, which will have a potentially negative effect on the retail property sector.

"However, we are confident the retail sector will continue to provide above average returns for the next 12 to 18 months."

As far as industrial property is concerned, he says there seems to be "mixed signals coming through the economy with manufacturing output coming lower than expected".

Sasse believes this, together with labour unrest in the mining sector, could also "pose some challenges for the industrial sector. However the fact that national vacancy levels in the industrial sector are at the 3% to 5% level suggests that there is no major oversupply of space. We are confident about the industrial property sector."

Source: BD

Login to post comments

LISTED PROPERTY (SA REIT)

 Norbert Sasse

Growthpoint Properties delivers half-year distribution growth of 7.5%

March 04, 2015 Listed Property eProp Commercial Property News
Growthpoint Properties Limited today reported distribution growth of 7.5% for its six-month interim period to 31 December 2014, delivering performance at the top end of its market guidance.

SECTOR - OFFICE/RETAIL/INDUSTRIAL/HOTELS

Nhlanhla Nene

Property market welcomes increase in the exempt threshold for transfer duty

February 27, 2015 Housing & Residential eProp Commercial Property News
In his speech yesterday, the Minister of Finance announced that “the rates and brackets for transfer duties on the sale of property will be adjusted to provide relief to middle-income households.”

ECONOMY & PROPERTY ECONOMICS

Darren Wilder

Fairvest Property Holdings delivers 10.03% distribution growth

March 02, 2015 Sector Environment eProp Commercial Property News
Niche retail Real Estate Investment Trust (REIT), Fairvest Property Holdings Limited announced an interim distribution of 7.427 cents per linked unit, a 10.03% increase of the comparable period which is at the upper end of the guidance previously issued of…

AFRICAN & INTERNATIONAL PROPERTY NEWS

Fuksas cloud

Italy auctions Mussolini buildings to fund conference centre

February 19, 2015 International News eProp Commercial Property News
Cash-strapped authorities in Rome are to auction off four Mussolini-era public buildings to fund the completion of a long-delayed but eagerly-awaited new conference centre.

CONSTRUCTION & INFRASTRUCTURE

Tshediso Matona Eskom

Eskom moves from stage one to stage two load-shedding

February 05, 2015 Energy Infrastructure eProp Commercial Property News
Eskom has today implemented stage two load-shedding due to a shortage of generation capacity.

PROVINCES & CITIES

David Makhura

Gauteng government sets aside R160m to grow Gauteng's township businesses

March 02, 2015 Gauteng eProp Commercial Property News
The Gauteng government has set aside more than R160 million towards revitalising the township economy.
MOD_RAXO_ALLMODE_ERROR_SOURCE

PROPERTY AUCTIONS

Umlazi

Aucor Property to auction regional retail shopping centres

March 03, 2015 Commercial Property Auctions eProp Commercial Property News
Aucor Property will hold its next commercial property auction on the 17th of March 2015 at the Park Hyatt Hotel at 12h00.

GREEN BUILDING & ENVIRONMENT

Brian Wilkinson GBCSA

Green Building Council calls for greater energy efficiency as 2015 Budget proposes further hikes in electricity costs

February 27, 2015 Green Building & Environment eProp Commercial Property News
Greater energy efficiency is now crucial for both business and ordinary citizens, the Green Building Council of South Africa warned in the face of further electricity hikes which have been proposed in the 2015 Budget.

Most Popular

Lee-Anne Bac appointed Gauteng Chairperson of the Women’s Property Network 2015

Feb 06, 2015
Lee-Ann
Lee-Anne Bac, director, Advisory Services at Grant Thornton Johannesburg, has been…

Waterfall City to construct R160m highway overpass bridge to improve Midrand traffic flow

Feb 12, 2015
Waterfall Bridge
Driving through Midrand will soon be a whole lot easier thanks to a new R160 million…

Jean Crossing shopping centre in Centurion open doors 26 February 2015

Feb 13, 2015
Jean Crossing
Jean Crossing in Centurion is a brand new shopping centre which promises to bring a…

SA Listed Property Index records 7.38% return for January 2015

Feb 13, 2015
Paul Duncan
The SA Listed Property Index (J253) recorded a positive return of 7.38% for the month…

Emira Property Fund install R6m solar farm at Epsom Downs Shopping Centre

Feb 12, 2015
Epsom Downs Shopping Centre
Emira Property Fund has installed a R6 million solar farm on the roof of its Epsom Downs…