OR Tambo office space in demand

STRONG demand for office space in and around the OR Tambo Aerotropolis is stimulating construction there.

This demand has kick started the R600 million expansion by Krisp Properties of its AAA-grade Clearwater office park along Atlas road, with new projects due to break ground in the eastern precinct of the aerotropolis in the second half of next year.

The office park already boasts 19 000m2 of office space and is 95 percent let, with another 44 000m2 of prime office being added due to the rising demand.

Jordan Mann, an executive director at Krisp Properties, said the new development would include six buildings looking inwards onto a piazza, with all six due to be completed by the middle of 2018.

The first phase of this expansion broke ground in June and will provide a further 14 000m2 of office space. The first 3 300m2 office block from this is set to be available from the middle of next year.

Mann said Krisp Properties was leading the charge in developing “a new business node” along Atlas Road. “There is immense national and international interest in the precinct,” he said.

Craig Henry, the principal of commercial property brokerage Planat Properties, said demand for land in and around the aerotropolis had surged ahead of the eastern precinct ground breaking next year.

“This area is seen as the new CBD of the East Rand. There’s a huge appetite for industrial properties in this area given its proximity to the airport, as well as to the R21 and N12,” he said.

Mann said Clearwater office park had already attracted major local and international companies.

“Our unique location enables us to position ourselves as a conduit for – and compliment to – business within the aerotropolis development,” he said.

Last year Pepsi, through its South African company Simba, and Michelin Africa moved their headquarters to the office park and were subsequently joined by Discovery Health, DHL Aviation, Barloworld, Old Mutual, Absa Bank and Imperial Air Cargo.

Mann said the office park was built as a holistic development, offering facilities such as tennis and squash courts, a gym, a day spa and a restaurant and conference facility, all of which were available to the commercial tenants. A boutique hotel was also planned for the estate, he said.

Town planner Jon Busser of Urban Dynamics, which is involved in the project, said Atlas road was experiencing increased demand for business uses and attracting private investment.

Busser said the Ekurhuleni northern spatial development framework stated that the agglomeration of mixed business on both sides of Atlas road was evidence that a natural activity spine was already forming along this route.