Parliament Street in Port Elizabeth, with upgraded roads and new street lights and walk.

Port Elizabeth, with its completed Nelson Mandela Stadium, is gearing up for the forthcoming Soccer World Cup, and the Nelson Mandela Bay area is undergoing a major facelift with roads being widened, open areas beautified and public buildings renovated.

In particular the revamp of Parliament Street and upgrade of Govan Mbeki Avenue has added value to the central area of Port Elizabeth, says Sonja de Necker, Eastern Cape regional manager for national property management company JHI, which has offices in Port Elizabeth, East London and Mthatha.

“These improvements will have long-term positive spin-offs for the city, including the commercial property market. There are several vacancies in buildings that are in need of a significant overhaul and improvement as they are not easy to let. Rentals were under considerable pressure during 2009, but are showing some signs of stirring during the first quarter of 2010. The going rate in the Newton Park area ranges from R60/m2 for B grade offices, increasing to the upper R70s a square metre for A grade office accommodation,” says de Necker.

“Demand is growing for customised space in freestanding buildings, as well as office space in decentralised areas. Suburbs that are in demand include Newton Park and Walmer, where new office developments ranging from 5 000 – 8 000 m2 are being built. In Walmer, many residential properties have been converted into offices and industrial warehousing facilities.”

De Necker says although 2009 was a very tough year for retail, rentals in Port Elizabeth are stable with rural malls performing well even during the tough times.

“It appears that PE is nearing saturation point as several new decentralised developments have come on line in the last two years. However, as the city expands new convenience centres have become one of the by-products in almost every suburb. As a result a considerable number of retailers, including nationals, are spread over a large area in the suburbs. Greenacres and Newton Park remain in demand among retailers and last year Dis-Chem launched its second branch in Cape Road in a freestanding building.”

She says the suburbs of North End and Deal Party are popular industrial areas, with quality space hard to come by as established businesses tend not to relinquish premises.

“There is more space in Greenbushes, which is not as central to the harbour as North End, and I believe this area is set for an industrial revival in the next two years,” says de Necker.

JHI also foresees a strong demand for warehousing space for large containers needing to be offloaded at the harbour, as for logistical reasons these need to be housed before being collected for transport by road. Currently there is no space available close to the old or new harbour. In addition, once the new Coega harbour is in full swing, the demand for industrial space in the nearby IDZ area is expected to take off.

Call Sonja de Necker on 041 5810756 or email sonja.denecker@jhi.co.za.