Exclusive Market Report: Industrial property market in Cape Town continues to grow

The Port of Cape Town

The industrial property market in Cape Town continues to show positive growth trends and increased activity. This is according to our latest market report compiled by industrial property director Lloyd Nussey, reporting that “there is a continued increase in industrial activity throughout the greater Cape Town area compared to the previous report”.

Download your free copy of the report:

Download: Cape Town Industrial Property Market Report September 2015

Overview

The industrial property market in Cape Town shows the following changes in key indicators

  • Average gross rental: increase to R44m2 (up from R42 m2 since March 2015).
  • Average gross rental for new developments: consistent at R60 m2
  • Escalation rates: consistent at 8%
  • Overall Vacancy rate: reduction of 2,76% from 386 652 m2 to 376 256 m2

Notable recent events

  • The Cape Town property market has seen a continued increase in industrial activity continuing from our previous report published in March 2015.
  • There has been very little change in vacancy rates for premises for the categories <500m2 and 500m2-1000m2.
  • In areas where new developments have taken place, notably Montague Gardens and Airport, areas of over 1000m2 have increased.
  • New industrial nodes such as Rivergate, and Brackengate are showing signs of good activity.
  • A significant increase in building and development activity has been seen throughout the greater Cape Town area compared to previous years.

Demand driven by efficiencies in modern buildings

  • There exists good demand in all major areas for owner occupiers and from an investment perspective.
  • We are seeing a trend in demand for newer buildings/properties motivated by increase in overall efficiency.
  • Logistics operators are expanding their property portfolio to reflect the right balance between property and position.
  • The further decline in manufacturing is seeing buildings reconverted for logistics purposes.
  • Traffic and accessibility are main driving factors motivating relocation.

Various new developments are positively contributing to supply

  • Main areas experiencing building activity is Montague Gardens, Epping, Brackengate,Blackheath,Belville and Airport.
  • Completions of new developments: 103 703 m2 of new properties has been developed. Building work valued at over R622 million (R622,247,981).
  • Approvals for new developments: 174 079 m2 of new properties to become available. Building work valued at over R1 billion (R1,185,598,052).
  • Greatest number of vacancies exist for properties over 1,000 square meters

Download your free copy of the report by clicking here

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