Joburg CBD star per­former

Finweek English Edition - - Property - JOAN MULLER

SPARE A THOUGHT for ten­ants in Lon­don’s West End – the world’s most ex­pen­sive of­fice lo­ca­tion – who now have to cough up the equiv­a­lent of more than R1 200/sq m a month for a prime busi­ness ad­dress. That com­pares to a rather mod­est R117/sq m in Sand­ton, South Africa’s most ex­pen­sive of­fice lo­ca­tion.

In­ter­na­tional prop­erty group Cush­man & Wake­field’s 2007 global of­fice re­port con­firms that while SA of­fice rentals are on the re­bound, we re­main dirt cheap in global terms. Out of 51 coun­tries sur­veyed, it’s only Thai­land and In­done­sia where of­fice ten­ants pay less rent than their SA coun­ter­parts (in euro terms).

The re­port shows that of­fice mar­kets across the globe im­proved sig­nif­i­cantly with global of­fice rentals up 12,2% in 2006 (4,3% in 2005).

Pace Prop­erty Group MD David Green, Cush­man & Wake­field’s as­so­ci­ate in SA, says Africa and the Mid­dle East recorded the most buoy­ant rental growth off all re­gions in 2006. This comes on the back of lower va­can­cies and lim­ited sup­ply of new of­fice stock com­ing on stream.

In­ter­est­ingly, the Jo­han­nes­burg CBD was SA’s star per­former, record­ing rental growth of 29% last year. Down­town Joburg was in fact the third best per­former in Africa and the Mid­dle East in terms of rental growth, af­ter Abu Dhabi (up 200%) and Kuwait City (up 41%).

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