Clearwater Office Park at the Clearwater Mall in Constantia Kloof, where JHI is marketing office accommodation.
As the Gautrain development gains momentum, so too does the demand for commercial space in the near vicinity of the Gautrain stations – a trend already clearly evident close to the Sandton and Rosebank stations, says Lia Pauley, leasing and sales broker for property services company JHI.
“There has been a surge in interest and enquiries from local and foreign corporate tenants wishing to relocate to the CBDs of Sandton and Rosebank - with a prerequisite being proximity to the Gautrain stations, followed by a preference for ‘green’ buildings.
“Such enquiries reveal that these prospective tenants have thoroughly researched the market and the location. They know that by being in the hub of either Sandton or Rosebank they are also within easy reach of hotels, shops and residences. In addition, the shift in tenants and corporates seeking ‘green buildings’ reflects a growing awareness of the Green Building Council of SA’s ratings and a desire to benefit, in the long term, from realistic rentals and reduced service charges.
“This growing trend towards a demand for space near the Gautrain stations will have a marked, positive impact on nearby office and industrial areas that meet these criteria as business, tourism and other commuters begin taking advantage of this convenient new transport facility,” she says.
A further spin-off is anticipated in that existing and possible new retail developments near the Gautrain stations are likely to enjoy increased trade as commuters have the convenience of being able to buy goods en route to their destinations.
Further economic sense to utilise the new transport system are the proposed new tolls which seem set to be imposed on commuters. For commercial tenants this is coupled with a potential saving on high parking rental charges, which are in the region of R500-R685 a month for a basement bay in Sandton and R500-R785 in Rosebank CBD. Plus the convenience factor is considerable, given that bumper to bumper traffic on the highways is a regular occurrence.
Pauley says another interesting trend is the redevelopment of existing buildings due to higher bulk being granted by the council to landlords who own buildings close to the Gautrain stations in Sandton and Rosebank. This will further boost the commercial property market in these nodes.
In Sandton the demand is mainly for rental properties, with gross rentals which include operating costs, rates and taxes, somewhere between R120 and R171 a square metre for A grade space and about R80-R100 for B grade premises. However, investors are also showing enthusiasm for the acquisition of land or buildings for redevelopment – again close to the Gautrain stations.
Pauley says: “Sandton remains the financial hub of Johannesburg and still has room for development, particularly sectional title office units as well as smaller office blocks where owner-occupiers can reflect their own identities.”
JHI has stock available in existing buildings close to the N1 highway and the Sandton Gautrain station. An ideal location is that which stretches from Rivonia Road and Katherine Street, bordering on the Wierda Valley area towards Sandton Drive and along Maude Street, Fredman Drive, West and 5th Streets towards Grayston Drive. All these streets surround the popular Sandton CBD which includes the Michelanglo Towers, Sandton Convention Centre, numerous hotels, Nelson Mandela Square and Sandton City. There is prime A grade office space available in various buildings here, with rentals ranging from R130-R150 a square metre.
Other appealing locations are just off Grayston Drive, but still within easy reach of the Sandton Gautrain station, where A grade space is available from R110 a square metre, and in the quiet Wierda Valley area of Sandton, within walking distance of the Sandton Gautrain station and Sandton City and en route to Rosebank, office accommodation ranges in price from R85-R180 a square metre.
Pauley says other expanding areas include the Constantia node, just off the 14th Avenue off-ramp towards the west of Johannesburg and the area surrounding the Clearwater Mall. These areas are accessible from the north, south and west of the city, and offer a variety of options in sizes ranging from 90-10 000 m2 and rentals ranging from R75 to R115 a square metre.
Call Lia Pauley on 011 9118000 or email lia.pauley@jhi.co.za.
