REAL ESTATE IN SOUTH AFRICA
Retail Property Sector
With a population unlike any other country, made up of a broad spectrum of ethnicities, the South African (SA) retail market is widespread and diverse, comprising of both formal and informal retail trade space.With roughly 25.6 million m² of formal retail space, and approximately 3.0 million m² in the pipeline, competition is extensive and demands new offerings and unique experiences from shopping centres and retailers in order to attract customers and retain market share.
Office Space Sector
The office sector, which is estimated to measure around 32.2 million m², is experiencing a degree of pressure as a result of current economic conditions and the COVID-19 pandemic.The overall office vacancy rate is 13.3% which is the highest since 2004.This is evident by a change in demand for space within certain nodes across the country as well as cautious attitudes being adopted by a number of corporates.
However, road infrastructure upgrades and new office developments coming onto the market are increasing the attractiveness of a number of nodes and growth has been evident in areas such in Johannesburg as Sandton, Rosebank and Century City which are situated in close proximity to public transport infrastructure.
Industrial Real Estate Sector
With regards to current industrial market conditions, developments with high yard ratios in addition to warehouses with high category ASIB ratings on firefighting equipment appear to be in demand.Furthermore, new warehouse developments are generally being constructed on demand, although developments of smaller units on risk are also evident.
In relation to online shopping, this is expected to lead to a demand for decentralised warehouse facilities within closer proximity to ports across South Africa.
Why South Africa?
South Africa is the continent’s most developed economy and is a labour-intensive country, with strong labour market volumes in terms of semi-skilled and unskilled labour.The country has an estimated population of 58.8 million. It has formidable manufacturing and financial sectors. It is the world’s largest exporter of gold and platinum.
What we offer
We help our clients make intelligent business decisions to get maximum value from the spaces they occupy.
The Cushman & Wakefield | BROLL partnership provides a full suite of services designed to comprehensively drive a client’s business advantage and its value to levels beyond just a best practice strategy.
It’s all in the delivery:
- Integrated data and finance management
- Advisory and transactions
- Account management
- Estate management
- Workplace consulting
- Facilities management
- Retail tenant representation, leasing and strategy
