Solution to leasing headaches

LEASEAFRICA is a new, free online vacancy-clearing system that aims to help SMEs find space to set up shop.

By aggregating lists and specifications of vacant commercial property space from a variety of intermediaries in the disparate R1.5-billion per year property-broking market, LeaseAfrica will become a onestop-shop for matching tenants to suitable offices, warehouses or factory space.

It seems like a win-win situation for tenants and listed property companies or private commercial property owners who struggle to find the right tenants.

Anthony Holme, CEO and founder of LeaseAfrica, said currently the service was free to prospective tenants, while the property owners paid commission for successful tenant referrals.

“The industry is very fragmented — there are several intermediaries, so where does one search for all vacancies in one go? This has simplified the process. While there is international precedent for centralised vacancy clearing hubs, LeaseAfrica has been designed to suit the structure of the local property rental market,” Holme said.

Countries with centralised systems had an average vacancy rate of 7.8%, lower than South Africa’s average of 13.8%.

If LeaseAfrica operated efficiently, and vacancy rates fell, he believed it would make the local listed commercial property more attractive to foreign investors.

“We are essentially placing every vacancy in front of every potential tenant in the market, instantaneously. There are funds, tied brokers, independent brokers — too many for any tenant to speak to,” he said.

Holme said sign-up had been significant so far. “A large part of the listed fund market has come on board, and the system is being constantly refreshed and improved. We can inform, guide, help and support tenants and there’s plenty of stock, lots of quality retail space — we just need to match it to tenants.”