Best and worst office rentals
Old buildings in big demand in South Africa's CBDs. Cape Town, Johannesburg, Pretoria, Durban - latest A-Grade property rental stats.
South Africa's major Central Business Districts (CBDs) boast some of the priciest Grade A office buildings, commanding gross monthly rentals of as much as R145/m2.
According to the South African Property Owners Association (SAPOA) Vacancy Survey for the first quarter of 2009, in Cape Town's CBD the minimum gross monthly rental for Grade A offices is R70/m2 with maximum gross rentals of R145/m2.
Grade A offices are generally buildings not older than 15 years or those renovated with high quality finishes. The SAPOA survey takes into consideration whether the building has a good quality lobby finish and access to and from an attractive street environment - including safety and security - when determining whether a building is Grade A.
Johannesburg CBD has minimum gross rentals of R47/m2 and maximum gross rentals of R90/m2. Durban CBD office buildings have gross asking rentals of R75/m2 and Pretoria CBD R55/m2.
The Johannesburg CBD has the highest total rentable area of 733 254m2, with 29 034m2 in Grade A office space available for leasing and an additional total rentable area of 13 708m2 committed to new developments.
Cape Town CBD remains the most important business node in that Metro, with several substantial developments to commence in 2011, the report showed.
Grade A office space is pricey in the CBD at R145/m2 compared to Belville, which has gross rentals of R115m/2, Century City with R137/m2, Claremont at R134/m2, Pinelands going for R120/m2 and Rondebosch/Newlands for R145/m2.
But, the V&A Waterfront Grade A offices in Cape Town are the priciest, at R180/m2. In Johannesburg, Braamfontein Grade A offices cost R80/m2, while Sandton's cost R166/m2.
Article by: Denise Mhlanga - www.realestateweb.co.za