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Andrew Dittberner
December 08, 2016

Value vs Growth - are we at an inflection point?

in Office, Retail, Industrial, Hotels and Residential
Over the long term, value styled investing outperforms growth styled investing. However, for the last seven years, both globally and in South Africa, value investing has underperformed.
Nic Morris Texton Property Fund CEO
December 08, 2016

Texton Property Fund Limited appoints Nic Morris as CEO

in Listed Property, REIT, Real Estate Funds
Texton Property Fund Limited (JSE:TEX), a South African real estate investment trust (REIT) has appointed Nic Morris as its Chief Executive Officer (CEO), with effect from 1 December 2016.
Mall de Tete
December 08, 2016

Acquisition of a new a grade retial shopping centre anchored by multi-national tenants with US dollar underpined leases

in Listed Property, REIT, Real Estate Funds
Acquisition of a new a grade retial shopping centre anchored by multi-national tenants with US dollar underpined leases.
Jacek Baginski
Dec 07, 2016

Change to the board of directors and to the executive function of a director

Shareholders are advised that Mr Maciej Drozd will step down from his position as chief financial officer of EPP and Mr…
Aerial view Kgoro Precinct Sandton
Dec 07, 2016

Green Building Council South Africa launches Green Star - Communities Pilot…

The Green Building Council South Africa (GBCSA) today announced the launch of the locally applicable version of the…
Karen Petersen
Dec 07, 2016

United African Marine Insurance Brokers (PTY) Limited acquires 20 5202 retail land…

Two sites at the Cornubia mixed-use development north of Durban, will break ground early in 2017. 
John LoosFNB
Dec 07, 2016

Building confidence increases for second consecutive quarter in Q4

The FNB/BER Building Confidence Index rose to 40 points in 4Q2016, its best level in 12 months.
EDO Menlyn
Dec 07, 2016

Thought Leadership - Going Shopping

Value for money is always going to be a key motivator when it comes to shopper behaviour.

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Featured Profiles

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Company Profile

Val-Co Property Valuers

Val-Co has extensive experience in the valuation of a variety of income producing properties, and can therefore offer our clients a comprehensive range of valuation services, and as a team, we endeavor to meet and exceed the requirements of our clients…

Property Leader

Greg Azzopardi

Greg Azzopardi

Greg has been with Mr Price since 1998. The Group trades as Mr Price, Mr Price Home, Mr Price Sport, Sheet Street and Milady's.
Wednesday, 20 March 2013 12:37

Office space under pressure in year ahead

Written by [email protected]
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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

Nedbank Property Finance is a market leader in commercial property finance, enabling you to realise your property opportunities through a diverse range of financing solutions.

Listed Property, REIT, Real Estate Funds

Nic Morris Texton Property Fund CEO

Texton Property Fund Limited appoints Nic Morris as CEO

December 08, 2016 Listed Property, REIT, Real Estate Funds eProperty News
Texton Property Fund Limited (JSE:TEX), a South African real estate investment trust (REIT) has appointed Nic Morris as its Chief Executive Officer (CEO), with effect from 1 December 2016.

Office, Retail, Industrial, Hotels and Residential

Andrew Dittberner

Value vs Growth - are we at an inflection point?

December 08, 2016 Office, Retail, Industrial, Hotels and Residential eProperty News
Over the long term, value styled investing outperforms growth styled investing. However, for the last seven years, both globally and in South Africa, value investing has underperformed.

Green Building and Sustainability

Aerial view Kgoro Precinct Sandton

Green Building Council South Africa launches Green Star - Communities Pilot Programme in South Africa

December 07, 2016 Green Building and Sustainability eProperty News
The Green Building Council South Africa (GBCSA) today announced the launch of the locally applicable version of the Green Star – Communities rating tool in South Africa.

Commercial Property Auctions

J_Arthur_Brown

Fidentia's One & amp; Only Hotel sells for R39m

December 02, 2016 Commercial Property Auctions eProperty News
Fidentia fraud case, masterminded by Fidentia boss J Arthur Brown, is over as his One & Only Hotel is sold for R39m.

Africa, International Property News

Andrew Coombs SRE

Sirius Real Estate targets main board

December 07, 2016 Africa, International Property News eProperty News
Sirius expects to move to the JSE's main board in late January or early February.

Construction, Energy and infrastructure

Menlyn Maine Casino Eastern Elevation which is the Main Entrance

Menlyn Maine - Time Square construction update

November 28, 2016 Construction, Energy and Infrastructure eProperty News
Construction on Sun International’s R4-billion Time Square casino and hotel development in Menlyn Maine, Tshwane, is fully on track, with the casino due to open on time in April 2017.

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