rode.co.za · Editor-in-chief Erwin G. Rode Editor Kobus Lamprecht Survey administrator Samantha...
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Listed property distributions drying up • O�ce market to feel the pain in coming quarters • Industrial rental growth slows further • Flat rentals and house prices continue to weaken • Capitalization rates moving up • Building activity in the doldrums • Common mistakes with discount rates
www.rode.co.za
Rode’s Report
2020:2
Property valuation when the road curves – p. 1
Editor-in-chiefErwin G. Rode
EditorKobus Lamprecht
Survey administrator Samantha Harkers-Kies
Advertising Lynette Smit 021 946 2480/082 323 5799
Subscriptions Juwayra Januarie021 946 2480/061 017 0973Annual digital subscription: 4 issues: R5.350 (excl. VAT)
Published byRode & Associates (Pty) Ltd. Reg. No: 2009/005600/07 PO Box 1566, Bellville 7535 Tel. 021 946 2480Cell. 071 410 7978 Fax 021 946 1238E-mail: [email protected] Website: www.rode.co.za
Cover illustrationKonrad Rode082 446 6526www.capetowncartoonist.com
© Rode & Associates (Pty) Ltd., June 2020. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. While all reasonable precaution is taken to ensure the accuracy of information, Rode & Associates (Pty) Ltd. shall not be liable to any person for inaccurate information or opinions contained in this publication. Portions of this report may be reproduced for legitimate academic or review purposes provided due attribution is cited.
Vol. 31 no. 2
Erwin G. Rode(editor-in-chief)
Kobus Lamprecht(editor)
Rode’s Reporton the South African Property Market
2020:2
iRode’s Report 2020:2
Rode ServicesPROPERTY CONSULTANCY • REAL ESTATE VALUATIONS • REAL ESTATE ECONOMICS • TOWN AND REGIONAL PLANNING
OverviewAs one of the largest independent property valuation firms in South Africa, Rode & Associates offers the property industry:
• Real estate economics and research – based on statistical models and regu-lar countrywide surveys, which feed three research publications and over 5000property time series covering more than three decades
• Property valuation – including retail, residential, commercial, industrial, agricul-tural and specialised properties such as hotels, hospitals, dormitories, self-stor-age facilities, airports, and the like
• Property consultancy – which includes forecasts, overviews, and expert analy-ses for corporates, government departments and private clients
• Town and regional planning – which covers spatial planning and land usemanagement and property market assessments for human settlement development.
Based in Cape Town, Rode serves clients from all over South Africa and Namibia (Windhoek only).
GROUNDBREAKING RESEARCH
Over the years, Rode’s research has led to groundbreaking property models and methodologies. This includes the regular, rigorous surveying of market rental levels and capitalization rates through the expert-panel method of polling to provide more uniform and realistic market valuations. Other breakthroughs include:
• A unique econometric model to forecast the South African real estate market• The statistical determination of standard capitalization rates• Property demand forecasts• The estimation of market rentals in shopping centres and for industrial premises
of various sizes• Special methodologies to value income-producing properties• The development of regression models to estimate the capitalization rates of
office properties, industrial properties and shopping centres• The application of multiple regression techniques to value houses• Rode’s Valuation Method – also known as the opportunity cash flow (OCF) method – to value income-producing
properties• A further refinement to the valuation of land with residential township potential using the direct-comparison
method• A further refinement to the valuation of bare dominiums.
RodePlanSPATIAL AND DEVELOPMENT PLANNERS AND PROPERTY ECONOMISTS
RodePlan specialises in strategic planning, land development, land audits and property research. This work is often supported by geographic information systems (GIS). A discussion of our expertise follows below.
1. Land development: rezoning, subdivision, departure, consent use, removalof title restrictions, land use management schemes (all SPLUMA related) andapplications in terms of the Subdivision of Agricultural Land Act, 1970
2. Strategic planning: spatial development frameworks (SDFs), urban develop-ment research
3. Human settlement development: human settlement plan, housing sector plan4. Property market research: determine highest and best use of land; indicator
development and monitoring; identification, acquisition and release of land;state of the property market report
5. Municipal integrated development plans (IDPs)6. Land audits.
RodePlan considers an in-depth understanding of the social, economic, political and environmental elements that underpin present-day society as fundamental to land development in order to complement economic growth and urban restructuring. We develop and apply scenarios and strategies to inform land development and land-use management.
RodePlan also advises private clients on the development potential of specific properties and/or land disposal strategies. This is done applying our expertise as property economists. RodePlan’s clients include property owners, developers, engineering companies and government:
Government: Western Cape Provincial Government, Gauteng Provincial Government, Cape Winelands District Municipality, Bergrivier Municipality, Saldanha Bay Municipality, Stellenbosch Municipality
Engineering companies and Independent Power Producers (IPPs): Umoya Energy (Proprietary) Limited, G7 Renewable Energies (Pty) Ltd, Plan 8 (Pty) Ltd, South Africa Mainstream Renewable Power Developments (Pty) Ltd, Solairedirect (SA), Windlab Systems (Pty) Ltd, Ventusa Energy, African Clean Energy Developments (Pty) Ltd, Enertrag South Africa (Pty) Ltd, Nadeson Consulting Services, Aurecon, Mott MacDonald, JG Afrika, EAS Infrastructure Engineers, JPCE Specialist Consulting Engineers
Property owners and developers: Engen Petroleum Limited, Bundi Adventures, Balwin Properties
Other: Ignite Advisory Services (Pty) Ltd, Pricewaterhouse Coopers (PWC), Urban LandMark.
Recent appointments include:
• Co-author of the national IDP Guide, 2020• Town planner for the Greater Hermanus Human Settlement Project• Town planner for the design of Public Transport Facilities, Area 3, City of Cape Town• To determine the highest and best use for two municipal-owned properties in Klapmuts, Stellenbosch
Municipality• To obtain land development rights for the West Coast Integrated Waste Management Facility• To obtain land use rights for renewable energy facilities in the Western and Northern Cape• To obtain land use rights for all provincially operated borrow pits in the Western Cape as part of the provincial
regravelling programme• To complete a land audit and land assessment of municipal-owned vacant land in the Saldanha Bay municipal
area• To draft the Stellenbosch Municipality Urban Development Strategy and Integrated Human Settlement Plan• To participate as spatial planner to complete a peer review of the route alignment for the Wynberg segment
of the IRT Phase 2A (Cape Town).
Rode Valuations As one of South Africa’s large valuation firms, Rode annually values property portfolios which include shopping centres, agricultural property, residential, commercial and industrial property. Rode also undertakes municipal property valuations, as well as specialized valuations such as hotels, hospitals, bare dominiums, airports, etc. Rode has been the annual overall top performer in the pmr.africa awards since 2016.
Rode’s property valuation services are underpinned by the rigorous surveying of, inter alia, market rental levels and capitalization rates. Rode’s valuation services also rely extensively on techniques such as regression models, as well as the opportunity cash flow (OCF) method. This ensures uniform and realistic market valuations and is Rode’s competitive edge.
SHOPPING CENTRES
In the retail field, Rode is considered South Africa’s premier shopping-centre valuer owing to the firm’s technique of calculating market rentals and standard capitalization rates. The firm regresses actual rental rates of recently signed leases against their floor area size to determine the relationship between the market-rental rate and floor area. The latter is a useful tool which landlords can employ to their advantage when negotiating renewals.
FARM VALUATIONS
Rode’s agricultural valuation department specialises in the valuation of farms and smallholdings and understands the value-drivers within this sector.
SPECIALIST PROPERTIES
Rode Valuations has done pioneering research on several specialist-property typologies, and we regard ourselves as leading valuers with respect to hospitals, self-storage facilities, hotels, retirement villages, bare dominiums (leased fee estates in American parlance) and airports.
Rode ConsultRode Consult renders property-related research services to the public and private sec-tors.
As consultants, Rode & Associates are often called upon to do difficult tasks. So, for instance in 1990 Rode analysed and forecast the property market in Maseru for the Lesotho National Development Corporation (LNDC). This project involved, inter alia, forecasting demand trends in Maseru.
Studies often utilise econometric analysis to forecast trends.
Examples of other assignments include:
• Compiling a macro overview of the South African housing market for thenational Department of Housing;
• Demand forecasts for specific office nodes, industrial townships, and flatsmarkets;
• Forecasts of rental levels using econometric modelling;• Property-portfolio analysis;
• Long-term forecasts of property values in South Africa;• An analysis of the property market in towns and municipalities;• Acting as an expert witness in arbitration and litigation;• Assessment of market potential for commercial property ventures such as new or existing office complexes,
retail centres, light industrial nodes, etc. To do this, property market indicators are identified and analyzed, e.g.supply and demand analysis (type & size), rentals (R/m²), selling prices, escalation rates (%), vacancies (%), take-up rates (%).
• Advisory services to implement the Government Immovable Asset Management Act, Act 19 of 2007 (GIAMA);• Research to determine the highest and best use for unused and underutilised government immovable assets.
Major recent clients of the division include: the City of Cape Town, the Western Cape Government, the Auditor-Gen-eral of South Africa (AGSA), engineering firms and property developers.
Rode PublicationsRODE’S REPORT ON THE SOUTH AFRICAN PROPERTY MARKET
Rode’s Report analyses and reports on most sectors of the property market in the metropolitan areas and some secondary cities. It covers, inter alia, rental levels per m² by property type, grade, size and node/township; capitalization rates by type of property, grade and location; building costs by type; building activity; etc. It excludes the retail property market. The publication is updated quarterly and available only in digital format.
RODE’S RETAIL REPORT ON SOUTH AFRICA
Rode’s Retail Report reports on the state of the retail property market by analysing the most recent retail sales and trading-density statistics. Retail property information includes street-front shop rentals per m² by size for about 120 street-front micro-locations in six metropolitan areas. The publication also reports on developments of new shopping centres and major extensions to existing shopping centres. The publication is updated quarterly and available only in digital format.
RODE’S SOUTH AFRICAN PROPERTY TRENDS
Trends contains forecasts of various property variables like rentals and capitalization rates by city, six years into the future. The forecasts are updated every six months using econometric models and cover the major South African metropolitan areas, thus giving a complete framework for property investment planning and viability studies. The publication is updated semi-annually and is available only in digital format.
TIME SERIES LITE
Use Rode’s reliable historical data to aid your research, strategic decision making and presentations. This digital database provides online access to more than 2 000 property-related time series – many going back more than three decades. The database includes key property time series like capitalization rates, and office and industrial rentals. The data covers all metropolitan areas and some secondary cities. It is updated quarterly and available only in digital format.
TIME SERIES PRO
This is an extension of Rode’s Time Series Lite database and contains about 6 000 property-related time series – many going back more than three decades. A must for the serious property analyst. Time Series is updated quarterly and available only in digital format.
Contact us• Tel: (+27) (0)21 946 2480• Cell: (+27) (0)82 323 5799• Fax: (+27) (0)21 946 1238• E-mail: [email protected] • Postal address: PO Box 1566, Bellville 7535, Cape Town, South Africa• Physical address: 11 De Villiers Street, Sunray (near c.o. Maree St), Bellville, Cape Town• GPS: 33°53’58,5”S; 18°38’14,5”E• Web address: www.rode.co.za
Rode staff
Erwin RodeBA, MBA (Stell): CEO
Kobus LamprechtBCom (NWU), BComHons and MCom (NWU)
Berchtwald RodeBA (Stell), MTRP (UOFS)
Juliana DommisseBEconHons (Stell)
Monique VernooyBTech(QS), NDREES (Unisa), MSc (UCT)
Stephan van der WaltMA (Stell)
Marlene TighyBSc (Wits) Hons (OR) (RAU), MBL (UNISA), Pr Sci Nat
Samantha Harkers-KiesND: HRM (CPUT)
Lynette Smit
Elizma Hawksley
Juwayra Januarie
Abigail Van Wyk
Shimonay Jonas
Rode’s Report 2020:2 Rode staffvii
Binty BritzBA (Stell), MLPM (UOFS)
Contents
State of the property market6
Capitalization rates921
Listed property24
Office rentals, operating expenses, and office demand & vacancies
29Office market to feel the pain in coming quarters Vacancy rates heading higher 55
Industrial rentals and vacancies and industrial stand values
72107
Residential market134Flat rental growth slows further
House price growth weakens further 165
Building activity & building costs Building activity in the doldrums 168
Rode’s Report 2020:2 Contentsviii
Listed property distributions drying up
State of the property market in quarter 2 of 2020
Capitalization rates moving upHow to estimate capitalization rates - anywhere
Industrial rental growth slows further Stand-value growth slows
General article1How to value real estate when the road curves
Tables
Rode’s Report 2020:2 Tablesix
8
13
14
15
16
17
17
18
19
20
26
32
33
37
40
43
47
50
58
65
71
75
76
89
103
104
Table 1.1: Rental performance as at quarter 2020:2
Table 2.1: Prime industrial leaseback escalation rates
Table 2.2: Survey of capitalization rates: Office buildings
Table 2.3: Change in capitalization rates: Office buildings
Table 2.4: Survey of capitalization rates: Industrial buildings
Table 2.5: Change in capitalization rates: Industrial buildings
Table 2.6: Survey of capitalization rates: Shopping centres
Table 2.7: Change in capitalization rates: Shopping centres
Table 2.8: Survey of capitalization rates: Street-front shops
Table 2.9: Change in capitalization rates: Street-front shops
Table 4.1: Total returns on listed property funds: Jan to May 2020
o and 3 years to May 2020
Table 4.2: Change in distributions for half- and full-year periods endedn
e February 2020 and March 2020
Table 5.1: Pioneer office rentals
Table 5.2: Market rental rates for office buildings
Table 5.3: Standard deviation of market rental rates for office buildings
Table 5.4: Typical rent-free period in months
Table 5.5: Market parking rentals
Table 5.6: Office rental escalation rates on new leases
Table 5.7: Escalation rates on operating costs
Table 6.1: Sapoa office vacancy factors
Table 6.2: Sapoa office stock
Table 6.3: Sapoa office space under construction
Table 7.1: Pioneer industrial rentals
Table 7.2: Mean prime industrial market rentals
Table 7.3: Standard deviation from mean prime industrial market rentals
Table 7.4: Predominant market escalation rates for industrial leases
Table 7.5: Indicative operating expenses for industrial buildings
28
TablesRode’s Report 2020:2 x
108
109
122
135
136
145
154
169
169
Table 8.1: Sensitivity of land value to changes in rent
Table 8.2: Mean market values for industrial stands
Table 8.3: Standard deviation for industrial stands
Table 9.1: Flat vacancies by city
Table 9.2: Flat rentals: Standard units
Table 9.3: Flat rentals: Upmarket units
Table 9.4: Flat: Parking rentals
Table 11.1: New non-residential buildings
Table 11.2: New residential buildings
Annexures
Rode’s Report 2020:2 Annexuresxi
Annexure 1
Glossary of property terms and abbreviations I
Annexure 2
Technical background to the Rode surveys X
Annexure 3
How to interpolate industrial rental rates and land values XII
Annexure 4
Approximate building cost rates by AECOM XIII
Annexure 5
Monthly forecast of Haylett by BER XIX
Annexure 6
BER Building Cost Index XX
Annexure 7
Prime overdraft rate at month-end (%) XXI
Code Company Telephone number
Panellist codes
Rode’s Report 2020:2 Panellist codesxii
ABA 0123455555 ACU 0825574768 AI 0123483720 AIR 0213801111 AN 0214657780 ANV
Abacus Di visions Acumen Properties Aida Pretoria Airport Property Annenberg Property Group ANVIL Property Smith 0872348000
AP 0112341144 AP 0126440522 AP
API Property Group/OfficePlace API Property Group/OfficePlace API Property Group/OfficePlace 0219112906
ARN 0413731333 AS 0614725023 AV 0112346111 AX 0215520001 BD 0413961400 BLA 0114631909 BON
Arnie Katz Re alty Airspace SA 5th Avenue Properties Avron Properties cc t/a Montague Gardens Property Bruce McWilliams Industries Black Pepper Properties Bonnins Est ates 0312668446
BR 0514303008 BR 0114414108 BR 0413635559 BR 0214197373 BR
Broll Property Group Broll Property Group Broll Property Group Broll Property Group Broll Property Group 0114414288
BVF 0448732801 CA 0219154800 CA 0315615838 CAP 0837845895 CAR 0117891007 CBR 0119118259 CG 0117062553 CHR 0435551002 CIR 0219813263 CM 0219141840 COE 0114677870 COM 0216805380 COR 0217972552 CPS 0102860777 CR 0117832111 CRE 0824413754 CRI 0123467777 CSP 0877027595 DAL 0437404786 DE 0366372297 DN 0219480934 DOR 0333425129 DT 0826022777 DW 0215311551 ED 0514489431 EK 0514301511 EQV 0514300907 ERA 0437404556 ERE 0310300999 ES 0152873300 ETC 0117915134 EXH
Boshoff Visser Property Group Chas Ev eritt Chas Ev eritt CapProp Carleon Properties CBRE Excellerate Currie Group Chris Batting Properties Circle Properties Capitol Commercial Properties Commercial Exchange Commercial Sp ace Core Property Group 3Cube Property Solutions Colliers Inte rnational Commercial Realtor of Excellence CRI Properties Cape Space Commercial Properties Dalena Properties Dedekind Real Es tate David Newham Property Management Dormehl Phalane Property Group Pietermaritzburg Deltahof Divaris Property Brokers Edric Tr ust Ellenberger & Kahts Equity Valuers ERA Sun Properties Empire Real Estate Eli St röh Etchells and Young Property Brokers Executive Ho mes 0114855019
Rode’s Report 2020:2 Panellist codesxiii
FAS 0769711241 FO 0357724011 GAM 0861177770 GB 0117831195 GB 0214186308 GI 0119446073 GPI 0110387100 GR 0218250111 GRV 0448747404 GW 0437222876 HN 0333423340 HN 0126530386 HOU 0798008413 HP 0214258586 IK 0214259496 IKP 0825625547 IPC 0413630000 JLL 0115072200 JR 0861825848 JUS 0212017007 JUS 0319037434/0283122247 JUS 0218546372 KEL 0137544400 LA 0219751770 LG 0118868070 LIB 0114485687 MAS 0123452576 MHP 0218899759 MO 0152914700 MP 0118494211 MPR 0123420527 MPV 0834693555 MR 0114531220 MUL 0448746907 MY 0413738676 NAN 0824113839 NE 0219139131 NET 0152988141 NEX 0214183911 NH 0113261614 NR 0514059990 NRG 0415822608 OFC 0873513832 OMN 0212762000 ORI 0137546562 OS 0824668989 OSO 0115933111 PC 0315691334 PCP 0212047218 PF 0219819756 PF 0214418800 PFP 0333472786 PG 0137542300 PH 0118738707 PLA 0514474711 PM 0137527333 PN
Find-A-SpaceFosprops Properties/Homenet Granite Asset Management Galetti Corporate Real Estate Galetti Corporate Real Estate Growthpoint Properties Gradion Property Investments Grove Properties Garden Route Valuers Goldswain Investments Harcourts Patrick & Co Harcourts Maritz House of Realtors Horizon Capital Ikon Property Group Ikon/Phoenix Consultants IPC/Rob Lopes Rentals Jones Lang LaSalle J Margolius & Associates Just Property Atlantic Seaboard Just Property Amanzimtoti Just Property Helderberg Kellaprince Properties Nelspruit Landlords "We do Rentals" Lew Geffen Sotheby's International Realty Craighall Liberty 2 Degrees Massyn Acquisitions My House Properties Moolman Group of Companies Monarch Rentals Millar's Properties Masisizane Property Valuations Marder Properties Multi Properties Mike Shefer Estates Nangate Investments Newbridge Property Services Networth Group Nexus Property Group Netwater Properties National Real Estate SA National Realtors Group Commercial One Fifty Capital Omnigro Oriprops Osher Property Solutions Office Space Online Propco (1985) Port Commercial Properties Permanent Trust Property Group Permanent Trust Property Group Profile Property Pam Golding Properties Nelspruit President Estate & General Agents Platinum Global PDL Property Management Propergation Property Solutions 0219146444
Rode’s Report 2020:2 Panellist codesxiv
PPG 0437000327 PPR 0110837171 PPS 0842087668 PRI 0316120786 PRS 0117816281 PRU 0218632046 PW 0538311319 PX 0216857710 RA 0110271400 REA 0118071760 RES 0832973140 REW 0836328011 RIZ 0835567257 RK 0114636161 RO 0114501700 RPB 0832810712 RS 0313093385 SAP 0214271600 SC 0114259857 SCM 0216731241 SE 0152954537 SF 0218642948 SF 0152971140 SF 0319031234 SH 0317647101 SHP 0836527341 SQ 0214261026 SUM 0415811768 SWI 0112686315 SWI 0824056940 SWI 0214220778 TE 0026461231224 TG 0152959014 TH 0118035545 TI 0117835370 TKC 0846049150 TR
Pulse Property Group Parallel Property Protea Properties Prime Property Musgrave ProperSell Properties R US Property Window Pillay Properties Real Estate & Property Services RealFMG Real Estate Services Real Estate @ Work Rize Property Professionals Renprop Reef Property Consultants Rand Property Brokers Rawson Properties - Berea SAProperty.com Stockton Property Consultants Sotheby's Commercial Stipec Ei endomskonsultante Seeff See Poff lokwane Seeff Commercial Share-List Property Shalan Properties Steer And Company Summerton Edelson Commercial Swindon Property Brokers Swindon Property Brokers Swindon Property Brokers Trust & Estate Co. Theo Goosen Estate Agents Trevor Hosiosky Investment Properties Torva Property Investments Tim Kel leher C onsulting Trafalgar 0413656840
TR 0123265963 TR 0313017017 TR 0112145200 TR 0437266066 TR 0214105500 TR
Trafalgar Trafalgar Trafalgar Trafalgar Trafalgar Trafalgar 0214105531
VAR 0871354450 WD 0219100180 WHF 0860009531 WK 0317090213 WP 0118870473 ZZ
Vartrust Real Estate Webprop Warehouse Fi nder Wakefields Watprop Anonymous
Acknowledgements
AcknowledgementsxviRode’s Report 2020:2
The writers of Rode's Report (RR) express their sincere thanks to:
1. SAPOA, for use of the basic data from its office vacancy and office stocksurveys, which we analysed further.
2. The Bureau for Economic Research (BER) for the use of its building-costdata (BER BCI).
3. AECOM for the use of its building-cost data for various building types.
4. All the panellists who so kindly gave of their time and expertise inresponding to our surveys. The complete list of panellists who contribute to the RR, together with their codes, appears on p. xii. For each of the survey tables in the RR you will find, listed against every node or area, the codes for all the panellists who contributed information this quarter.
5. Loraine West, who has the task of making sure the grammar and styleare up to scratch.
6. Other property practitioners throughout South Africa, experts in theirfields, too numerous to mention individually. Without the generous assistance of these professionals, much of our research would be impossible.
7. Samantha Harkers-Kies, who manages the surveys and compiles theannexures, and Lynette Smit and Juwayra Januarie for their technical assistance.
8. The JSE Securities Exchange and Statistics South Africa for the use oftheir data.
Foreword
Dear Reader
ForewordxviiRode’s Report 2020:2
Welcome to the second issue of Rode’s Report on the South African Property Market (RR) for 2020. The second-quarter report was one of the most difficult we have ever had to write given the extreme uncertainty caused by the coronavirus crisis, while the lack of new data made gauging the severity of the downturn difficult. Our early findings point to a property market that has weakened further, but the big negative impact of the crisis will only be seen in coming quarters as more clarity emerges with increased property transaction volumes.
As usual, we report on the movements of several critical property variables, ranging from capitalization rates, market rentals, operating costs, escalation rates and land values to house prices.
If you want to communicate with a specific niche market, you can contact Lynette Smit on 082 323 5799 for RR advertising rates.
Lynette and Samantha Harkers-Kies are in charge of expanding our survey panel. We appeal to all market participants who feel they have sufficient property-market knowledge to become a panellist, to please contact Lynette or Samantha on 021 946 2480 — it’s for the benefit of everyone in the industry. As a panellist you will also get invaluable exposure.
All the best in these tough times!
Kobus Lamprecht Editor
1 July 2020
Property is constantly in the limelight and investors are searching for meaningful, property-specific information. This makes a compelling argument for finely-targeted advertising in the Rode’s Report on the SA Property Market. This independent analysis is one of the most widely-read publications of its kind.
ADVERTISE YOUR SERVICES AND PRODUCTS TO EXCELLENT EFFECT
• Target audience: Rode’s Report is targeted at independent analysis of theproperty market targeted at property practitioners, e.g. property developers,property managers, landlords, merchant and commercial banks, non-residentialproperty brokers, estate agents, valuers, quantity surveyors etc.
• Continued exposure: A quarterly publication, Rode’s Report is used as areference source with a long shelf life.
• Rates: If you advertise for four consecutive quarters, you will receive a 20%discount off standard advertising rates. Normal rates appear on our rates card.
• Advertise on Rode’s website: For an extension of your marketing, also consideran advertisement on the Rode website.
BOOKINGS AND MORE INFORMATION
Cellphone: 082 323 5799Landline: 021 946 2480E-mail: [email protected] Website: www.rode.co.za
IT’S WHERE YOUR MARKET GOES SITE-SEEING
Advertise in Rode’s Report
How to value real estate when the road curves
et us assume South Africa was a 4x2 bakkie. The two front wheels are already over the (fiscal) cliff; the two rear wheels are still on terra firma. The driver is still behind the steering wheel and is frantically engaging reverse gear – but it is a front-wheel-drive vehicle. This is where the SA economy is.
This has important implications for the valuation of fixed property. The practical problem is that all evidence of value is in the past. In fact, the act of valuation can be described as a blindfolded driver behind the steering wheel while a passenger looking through the rear window gives directions to the driver. This could sort of work when the road is straight. But now the road is curving …
It seems to me there are many blindfolded valuer drivers out there who do not recognise that the road is curving and that the voice in the rear seat shouting directions based on the road behind the vehicle hasn’t got a clue either.
This brings me to the drivers of market value. For income-producing properties, the important variables are the expected income stream (peering into the future) and capitalization rates. When you do a combination of discounted cash flow and straight capitalisation, then both the capitalization and the discount rate are important. However, because our metaphorical road is curving, the past evidence for these variables is of limited use. This problem is compounded as valuers have virtually no known recent transactions, given the Covid-19 lockdown. So, the guy looking through rear window cannot even see the first 200 metres behind the vehicle; thus, in his directions to the driver he not only has to predict the future, he must also predict the past.
Hence, valuations are a guessing game at present. To help valuers, let us first revisit the first principles of valuing income-producing properties.
Equation (1) below is an example of discounted cash flow, which is based on the principle that time has a monetary value. It can be explained in the following way:
R100 is worth more today than a year from now. The difference is how much interest one can earn on R100 over the next year. For example, the present value (PV) of R100, payable a year from now, would be R89,29, calculated at an interest rate of 12%. Put differently, if one could invest R89,29 for one year at 12%, this investment would be worth R100 at the end of the term. Discounting is, therefore, nothing but the opposite of compounding interest.
Valuers all know the capitalization formula
k
DP 1
0
But does the reader know that this simple formula has royal ancestry? It was derived from the equation below, also known as Gordon’s Growth Model.
L
Rode’s Report 2020:2 1 General article
Erwin Rode
r
gD
r
gD
r
gDP
1
1..
1
1
1
1 02
2
000 (1)
Where:
0P =Price or value in period 0
0D =Cash flow or dividend in period 0 g =A constant growth rate of the cash flow in perpetuity
r =Total return (hurdle rate) required by investors, in other words, income yield plus capital return. It can be likened to the opportunity cost of equity capital: in an ungeared portfolio of properties, it is the rate of return on new investments you require not to dilute the portfolio’s returns.
Provided r > g, Equation (1) can be simplified as follows:
gr
DP
1
0 (2)
or:
k
DP 1
0 (3)
where:
grk (the capitalization rate)
It is Equation (3) that is known as the capitalization formula, and it is widely used by professional valuers. Where a property is not rented at market-related levels, certain further adjustments are necessary by adding the present value (PV) of the opportunity cash flow (OCF) or the PV of the top-slice amount.1 The capitalization formula should, therefore, be used with caution.
It is clear from the above that direct capitalization is a form of discounting – a form that assumes that the cash flow will grow at a constant rate g in perpetuity. This assumption is not always correct. For instance, due to existing leases, further adjustments are often necessary after capitalization.2 Otherwise, the rental income should be discounted and capitalization only done at the expiry of the lease of a single tenant. In the case of multi-tenanted buildings, this is complicated — what with different lease expiry dates — and this writer, therefore, normally prefers the straight capitalization option, provided adjustments are made for any over- or under-rentedness.3
1 Where a property is under-rented, the OCF or top-slice amount would be negative. (Under-rented means the escalated contractual rentals are lower than market rentals.) In SA the opposite is more common because of our high contractual escalation rates. 2 See previous footnote. 3 The two methods should yield the same market value, provided the assumptions going into the models are internally consistent.
Rode’s Report 2020:2 2 General article
After rearranging Equation (2), we get the calculation of the required total return (hurdle rate):
gP
Dr
0
1 (4)
The hurdle rate is the rate that should be used when discounting because it is the total return investors forgo when they are not invested in a specific property (their opportunity cost). The hurdle rate of a specific property is of course a function of such a property’s risk and expected (ex ante) cash-flow growth in perpetuity. The latter is represented by g.
From Equation 2 it is clear the crucial variables to establish are r and g – whether you do straight capitalization or a combination of straight capitalization and discounting. If you had a good handle on what r is and you knew what g was (good luck!), then you can calculate k (the capitalization rate). If you knew what k was (say, ex Rode’s Report), and you can estimate g ex ante, then you can calculate r because r = k + g. This is the normal way of calculating the discount rate.
South Africa’s future is currently very uncertain. This begs the question, how does uncertainty manifest itself in the above variables, i.e. k and g?
I posit that g only represents expected net income growth, nothing more. The uncertainty is encapsulated in k, the capitalization rate. Let me illustrate:
There are two types of risks associated with an investment:
Firstly, the probability that the futurecash flow will deviate from theexpected, in other words, expected gmight turn out to be wrong. Theuncertainty regarding g is captured ink, the initial yield at which investorsare prepared to trade. The higher the
4 Credit rating agencies reckon SA government bonds are becoming so risky they are now below investment grade. Thus, they are hardly risk free anymore. 5 Rising long interest rates depress bond values and vice versa.
uncertainty about g, the higher the capitalization rate the buyer would demand to achieve his desired total return r. This is an endogenous risk.
Secondly, the probability of capitaldepreciation through exogenousfactors like the economy tanking orlong-bond interest rates movinghigher, resulting in lower bond values.Long bonds (or similar) also act assubstitute investments for property;hence changes in these yieldsinfluence k (more about this later).
Government bonds of 10 years and longer are often seen and used as a metric for return on a risk-free investment. The reason is that – normally – the risk of default is low,4 but that does not mean their risk of capital depreciation is low because the probability of long interest rates fluctuating5 is greater than the government defaulting.
Of course, these two sources of risk are intertwined. We see it in the way credit rating agencies look at countries’ risk profile. A high debt obligation may still be tolerated, provided the economy (“g”) grows strongly, enabling the country to continue serving its interest obligations.
Thus, both endogenous and exogenous risk can result in capital loss. But how to quantify this risk?
The risk premium in the capital market
In May 2020, long yields in SA were volatile but averaged 10%. Remember, this type of investment may be – or is supposed to be – free of default risk, but not free of capital depreciation risk via fluctuating long interest rates.
Rode’s Report 2020:2 3 General article
On the other hand, money-market instruments like treasury bills (TBs) of 91 days are practically risk free with respect to both the probability of default and capital loss (because of the short term of 91 days). On 25 June 2020 TBs stood at about 4%.
The spread (difference) between short and long investment was thus 6% points at the time of writing. This is the risk premium in the capital markets, which caters for the risk of higher inflation over the 10-year period and the possibility of default by the state. The reader might think the latter source of risk is negligible, but the history of the capital markets of Latin America over many decades shows this risk is very real in a democratic developing country because politicians in such regimes often have a short time horizon and tend to be socialist in their policies (think “bread and circuses”).
The yields at which long bonds trade can be compared with the capitalization rates of income-producing properties. Thus, we can posit that risk is already built into property capitalisation rates and that at present the risk premium for a grade-A office building in Sandton CBD is a hefty 5,8% points (9,8% Sandton CBD capitalization rate6 less 4% TB 91 days). By chance, this was also the average risk premium of 10-year bonds in May.
Thus, it is wrong to include a risk element in g (the expected constant growth rate of the cash flow) because this would amount to double counting for risk. I recently had the opportunity to read other valuers’ reports with valuation dates February and March 2020 and it struck me that they seem to use a typical g of 6%.7 8 This was excessive even during the boom years but is now patently unrealistic. If you can buy a grade-A office
6 See Table 2.2 in Chapter 2 for the surveyed capitalization rates as in quarter 2 of 2020. 7 The source is given as Sapoa’s survey as at the end of 2019 – or even many years earlier! 8 Such a high g is not defendable as Rode’s SA Property Trends publication forecast as at December 2019 that, for instance, under the more probable ‘IMF’ scenario gross grade-A office rentals would nationally grow at 2,1% p.a. over the following six years. But this rate would not apply to individual buildings’ cash-flow as it ignores changes in vacancies, the effect of ageing on an individual building’s market rental and operating costs that grow faster than inflation. Thus, a 2,1% growth of grossgrade-A rents becomes something like 1% growth in cash flow.
property at an initial net yield of 10% today and be so lucky as to get a 2% per year growth in cash flow over, say, a period of five years, you would get a total return r of about 12%, which equates to a very satisfactory real total return of about 8%, given today’s inflation rate of about 4%.
Common sense tells you that in today’s market the values of properties surely must have depreciated compared to a year ago. Yet, when you do a discounting of the first few years’ cash flow rather than a straight capitalization, the following anomaly raises its head compared to last year:
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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Regional shopping centresIndustrial leasebacksDecentralized offices
National capitalization ratesby property type
Source of data: Rode's Time Series
%
Smoothed
Yes, capitalization rates have been creeping up over the past year or two (see the graph), but because of a lower g, the discount rate on a net basis is probably reduced (depending on what the previous year’s g was), thereby pushing up the value, holding all other factors constant. Surely that cannot be. The ‘all other factors’ we hold constant are the income stream. And this is the answer to the riddle.
Temporarily, contractual escalation rates on existing leases (say, 8% per year) will tend to support a growth in cash flow that exceeds market-related rental growth of, say, 2%.
Rode’s Report 2020:2 4 General article
However, these leases with their escalated rentals will sooner or later revert to (much lower) market levels. Also, there will be growing vacancies through tenants going bankrupt or reducing their rented space and having to be replaced at market rentals. The space may even remain vacant for a long time. Whether the valuer does the DCF over five or ten years, it is exceedingly important to incorporate the effect of these market reversions in the cash flow. Also crucial, is to do the capitalization at the end of the DCF period on the forecast net market rentals of the following year9 – in our example, using net market rentals that had grown at an assumed 2% per year since the valuation date.
The determinants of capitalization rates and g
In Chapter 3 of this issue of Rode’s Report and all past issues, the reader will see that a cross-sectional10 regression analysis shows that – nationally – gross market rental levels are a very significant determinant of capitalization rates. And rentals are in turn largely driven by economic growth, which in turn fuels g. The explanation is that when the market expects booming market rentals, investors are prepared to pay a higher price for year 1’s expected income stream – meaning capitalization rates drop. Andvice versa.
Our time series regression analyses11 show that over time the drivers of capitalization rates are 10-year bond
yields (as substitute investments) and economic growth. The former thus incorporates a risk premium and the latter determinant powers g of course. Today, both drivers of capitalization rates point to rising capitalization rates because:
Long bond yields have – for a goodreason – been rising since last year,thereby via the substitution mechanism confirming that capitalization rates include the riskpremium discussed above.
The economy is waning (depressingexpectations over the growth of g,resulting in buyers demanding ahigher capitalization rate to stillachieve their desired total return).
Note, however, that capitalization rates are sticky – meaning they do not change as fast as, say, 10-year bonds’ yield to maturity.
In conclusion, the most important take-away of this piece is that valuers should carefully weigh the impact of the unfolding economic malaise on the important drivers of value – k, g and the cash-flow growth during the DCF period – and make sure the assumptions areinternally consistent. Above all, the magnitudes of the variables must be internally consistent and defendable. When an economy lapses into a serious and protracted downswing, past growth rates of cash flow are nigh irrelevant and g of an individual property cannot be assumed to exceed inflation.
9 In the case of a 5-year DCF, year 6’s expected net normalised market rent and in the case of a 10-year DCF, year 11. 10 A cross-sectional analysis is as at a certain date in contrast to a time series analysis that analyses data trends over long periods. 11 The results (forecasts) of which are published every six months in Rode’s SA Property Trends.
Rode’s Report 2020:2 5 General article
Rode’s Report 2020:2 6 State of the Property Market
Chapter 1: State of the property market
State of the property market in quarter 2 of 2020 Rode’s latest survey results confirm – if confirmation was necessary – that the SA property market is under serious pressure. The economy has now been in recession since the third quarter of 2019, and the impact of Covid-19 will accelerate the slide. The emergency budget delivered in June points to a worsening fiscal crisis, which could drag South Africa (or the bakkie on the front page) over the cliff if drastic measures are not implemented. The severe economic slowdown has implications for the valuation of property and we deal with this in our special article at the beginning of report.
The second-quarter surveys were conducted in May 2020 when transaction volumes were very limited due the lockdown, which forced estate agencies to temporarily close or work from home, preventing the physical inspection of properties. One would imagine that convincing a buyer to purchase or a tenant to rent a property without physically seeing it would be difficult, even if you had the best technology at your disposal. In fact, out of Rode’s total survey respondents, 56% said the first-quarter data were still applicable due to lack of new transactions. Almost all other respondents provided data indicative of a weaker market. We expect the real impact of the coronavirus crisis will only be seen in coming quarters as transaction volumes increase. Leases that come up for renewal will see sharp rental reversions as most landlords aim to keep tenants as the risk of finding good new tenants in this market is high.
A vital point to remember is that the property market was already oversupplied before Covid-19 emerged in South Africa in March. This implies that the pandemic will prolong the oversupply situation, with a sustained upturn now several years away.
A summary of the main findings by property type follows.
Quantitative overview of the property market
Table 1.1 on the page 8 provides a snapshot of how the property market has performed over the past four quarters by comparing the latest information (quarter 2020:2) with data collected a year earlier.
Office market
Nationally, nominal market rentals for grade-A office space in the second quarter of 2020 increased by only 1% compared to a year ago ̶ lower than the 4% year-on-year growth recorded in the first quarter of 2020, according to Rode’s office market survey. This has been the weakest year-on-year change in rentals since 2013. Rentals decreased by 1% compared to the first quarter of 2020. This implies that rentals moved even deeper into negative territory when measured in real terms; that is, after accounting for building-cost inflation (BER BCI) of around 8%.
Over the past year, grade-A rentals grew by about 4% in both Cape Town and Durban, while growing by 1% in Johannesburg. Rentals declined by 3% in Pretoria. Almost all cities recorded lower
Rode’s Report 2020:2 7 State of the Property Market
rentals compared to the first quarter, but not by more than 2%.
Due to its significant oversupply, the office market was in deep trouble even before Covid-19 came along in March this year. Nationally, decentralized vacancy rates for grade-A and B-offices combined averaged 11,1% in the first quarter of 2020, up from 10,6% in the fourth quarter of 2019 and the worst rate since early 2004. We expect vacancy rates to increase sharply over the rest of 2020 and into 2021 as more companies close. Companies might also reduce their required space as more employees work from home on a permanent basis, leading to a prolonged oversupplied market. However, this impact will be offset somewhat by more space per employee required to adhere to social distancing guidelines.
Positive aspects for the market are the big slowdown in building activity and the fact that international and domestic REITs have reported a high percentage of rental collections in April and May, probably as most companies that were forced to close their offices could work from home and still obtain some form of income.
Industrial market
Our survey results show that the industrial market, like other property sectors, is also feeling the impact of the very weak economy, which has been dragged down further by Covid-19 since March 2020. Nominal industrial market rental growth slowed to 1% year on year in the second quarter from 2% in the first quarter, with vacancies remaining higher than in 2019. Rentals were virtually unchanged compared to first-quarter levels. We believe this is reflective of the very thin market, with few transactions taking place during the lockdown.
Nominal rental growth for prime industrial space of 500 m² was the fastest in Cape Town at about 4% compared to a year ago. Rental levels stayed roughly the same in the East Rand but fell by 3% in the Central Witwatersrand. This implies that all regional rentals increased at a slower rate than building-cost inflation.
A positive aspect for the market is that domestic REITs exposed to industrial property have reported a high percentage of rental collections in April and May, especially those linked to logistics where rental collections were in the high nineties. This is because essential retailers have stayed open during the entire lockdown and had no excuse to plead poverty.
Residential market
The housing market is under increasing pressure, with national house price growth continuing to weaken. The latest data from FNB show that nominal house price growth slowed to 1,9% year on year in April 2020, down from 2,5% in March, and the lowest since end 2009. This implies that prices have continued to decline in real terms after having taken out inflation. Please note that the April data do not fully reflect the impact of the lockdown.
The housing market is still a buyers’ market due to the oversupply, most significantly at the high end of the market where sales volumes have declined drastically. The very-low end of the market remains the best positioned as demand still exceeds supply (as far as we know!).
A boost for the residential property market has been the sharp cut in short-term interest rates to the lowest in 50 years. However, the interest rate cuts won’t be enough to cancel out the deleterious effect of the recession – a recession that could last a long time.
Nationally, flat vacancy rates averaged 7% in the second quarter of 2020, up from 5,5% in the second quarter of 2019. High and rising flat vacancy rates have led to slower rental growth, which in the first quarter of 2020 averaged 3,2% on a year earlier – the slowest since at least 2009. This implies that rentals are declining in real terms. Vacancy rates will rise further in the short term as the sharp contraction in the economy puts significant financial pressure on many tenants, leading to
Rode’s Report 2020:2 8 State of the Property Market
more evictions as we move to lockdown level 2 and lower (evictions are not allowed under lockdown levels 5 to 3).
The stark reality for owners of residential property will be to choose between lower rentals or no rentals.
Table 1.1 Rental performance as at quarter 2020:2
% change from four quarters ago (on smoothed data)
Nominal Real*A-grade decentralized office rentals
Sandton CBD 0,6 -7,3 Rosebank 1,9 -6,1Randburg Ferndale -2,4 -10,1 Centurion 0,1 -7,8Menlyn -5,6 -13,1Berea (Durban) -8,0 -15,3 La Lucia/Umhlanga Ridge 4,7 -3,6 Claremont Upper 7,2 -1,3 Tyger Valley 5,3 -3,0 Century City 6,8 -1,6
Prime industrial rentals (500-m² units) Central Witwatersrand -2,6 -10,2 East Rand 0,4 -7,5 Durban 3,2 -5,0 Cape Peninsula 3,5 -4,6 *Nominal values deflated by BER Building Cost Index (2016 = 100)
Rode’s Report 2020:2 9 Standard capitalization rates
Chapter 2: Capitalization rates
Capitalization rates moving up Kobus Lamprecht
Capitalization rates of directly-held non-residential property in South Africa in the second quarter of 2020 continued to increase (worsen) from previous-quarter levels. We ascribe this to the poor outlook for the property market, which is not surprising, given the business cycle downturn, compounded by Covid-19.
The respective national capitalization rates were 10,3% for grade-A multi-tenanted decentralized office properties, 9,8% for prime industrial leasebacks and 8,5% for regional shopping centres (see the chart), all up compared to the first quarter of 2020. All data series in this chapter are smoothed. However, unsmoothed, capitalization rates are up about 0,3% points for all non-residential property types; on a smoothed basis, they are only up by 0,2% points.
Importantly, Rode’s second-quarter surveys were conducted in May 2020 when transaction volumes were very limited due the lockdown. In fact, out of Rode’s total number of survey respondents, 56% said the first-quarter data were still applicable due to a lack of new transactions. As is to be expected, almost all other respondents indicated a weaker market.
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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Regional shopping centresIndustrial leasebacksDecentralized offices
National capitalization ratesby property type
Source of data: Rode's Time Series
%
Smoothed
We expect the real impact of the coronavirus crisis will only be seen in coming quarters as transaction volumes increase. Thus, capitalization rates – as reported – could come under more pressure in the short term.
Below, we first briefly discuss the outlook for capitalization rates, followed by the movement in capitalization rates for the different property types by region.
Outlook for capitalization rates
Interest rates in general can affect the total returns (hurdle rates) and income yields investors expect on property in three ways, viz. (1) the substitution principle (alternative, long-term investments like 10-year bonds experience a change in yields), (2) changes in the cost of financial gearing (shorter-term interest rates), and (3) changes in the market’s rating of listed property funds like REITs. These factors can all affect the profitability of purchasing directly-held properties, but the market’s rating of REITs (as argued above) is especially important as REITs are big buyers of institution-quality directly-held properties, and a poor rating of REITs (high forward yields) means these funds want to pay less for the same expected cash stream (thereby raising capitalization rates of directly-held properties).
The outlook for the growth in income streams from directly-held non-residential property continues to be marred by poor and worsening property fundamentals, such as above-average vacancy rates and, therefore, weak rentals. The dismal fundamentals are of course the result of an
Rode’s Report 2020:2 10 Standard capitalization rates
economy in dire straits – a situation that will persist for some years to come.1 This should generally impact negatively on capitalization rates in the medium term, meaning cap rates will tend to rise. See also our special chapter in this quarter’s issue titled Quo vadis capitalization and discount rates?
As explained above, another predictor of capitalization rates is long-bond yields. SA’s long-term bond yield (10 years and over) averaged 10% in the first five months of 2020, up from 9,1% in 2019. The yield averaged 10,1% in May. This implies that cap rates could head higher in coming quarters.
Office capitalization rates
Johannesburg
Office capitalization rates of grade-A multi-tenanted properties in Johannesburg decentralized averaged 10,4% in the second quarter of 2020, up from 10,2% in the first quarter. This is 1 percentage point (or 100 basis points) higher than in Cape Town, where cap rates are the lowest.
The two accompanying graphs show which decentralised nodes in Johannesburg are not investors’ favourites (the nodes with the highest capitalization rate). They are: Randburg, Rivonia, Parktown and Midrand. Of course, there are others, but these are the ones that stand out on the two graphs.
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Sandton CBDParktownRosebankMidrand
Capitalization ratesJohannesburg decentralized grade-A offices
Source of data: Rode's Time Series
%
Smoothed
1 For a further explanation of the reasons why the economy is in such a dire position, as well as 6-year forecastsfor the property market, the reader is encouraged to subscribe to our sister publication Rode's SA Property Trends.
The accompanying graph confirms – if confirmation was necessary – that the top office nodes in Johannesburg are Sandton CBD and Rosebank, but not shown in the graph is that the third top node is Waterfall.
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2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
BryanstonRivoniaSunninghillRandburg
Capitalization ratesJohannesburg decentralized grade-A offices
Source of data: Rode's Time Series
%
Smoothed
In the second quarter, capitalization rates on grade-A multi-tenanted properties in Johannesburg decentralized ranged from 9,4% in Waterfall to as high as 11,3% in Randburg/Ferndale. Most nodes saw weakening capitalization rates in the second quarter, as shown in the two charts.
The differences in capitalization rates can be used as a guide to the market’s perception of these nodes. The higher the capitalization rate, the worse the expected growth in income streams and/or the higher the perceived risk of the node (or individual property).
Thus, risk and expected growth in rentals are intimately linked. We also see this link in the way rating agencies like Standard & Poor’s evaluate the creditworthiness of countries (high economic growth reduces risk of default even when the debt ratio is high).
Pretoria
On smoothed data, capitalization rates in prime Pretoria decentralized office nodes were slightly higher compared to the first
Rode’s Report 2020:2 11 Standard capitalization rates
quarter of 2020. Our respondents believe investors currently require a minimum net income return of 10,4% to induce them to buy or sell grade-A multi-tenanted property in Pretoria decentralized.2
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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
BrooklynHatfieldCenturionMidrand
Capitalization ratesPretoria decentralized grade-A offices
Source of data: Rode's Time Series
%
Smoothed
Durban
The average capitalization rate for grade-A Durban decentralized office property saw a hefty hike to 10,9% from 10,2% in the first quarter. All major nodes saw higher cap rates as shown in the chart.
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La Lucia/Umhlanga RidgeWestwayEssex TerraceBerea
Capitalization ratesDurban decentralized grade-A offices
Source of data: Rode's Time Series
%
Smoothed
Cape Town
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ClaremontTyger ValleyCentury CityWestlake
Capitalization ratesCape Town decentralized grade-A offices
Source of data: Rode's Time Series
%
Smoothed
2 Note that we report on standard capitalization rates. These assume the property is let at market-related rentals as distinct from escalated contractual rentals, which may be far higher than market levels. See the Glossary (Annexure 1).
Grade-A capitalization rates in Cape Town decentralized averaged 9,4% in the second quarter of 2020 – up from 9,2% in the first quarter, but still comfortably the lowest in the country.
Industrial capitalization rates
In the second quarter of 2020, capitalization rates on industrial leasebacks in the country’s major industrial areas on average increased (worsened) compared to the first quarter of 2020. Our respondents believe investors in prime industrial property (with a leaseback covenant) required a minimum net income yield of 9,8% (9,6% in previous quarter) in the country’s top cities and nodes. In today’s market, this is not a bad return, provided the tenant is of a AAA quality, considering that 10-year government bonds stood at about 10% on average in May 2020.
The capitalization rates of all major industrial conurbations surveyed by Rode increased compared to the previous quarter, as shown in the chart. Cap rates remained the lowest in the Cape Peninsula at 9,2%, despite weakening from 9%. Average capitalization rates in the Central Witwatersrand, Durban and Pretoria averaged between 9,4% and 10%.
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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Cape PeninsulaDurbanPretoriaCentral Witwatersrand
Capitalization ratesPrime industrial leasebacks
Source of data: Rode's Time Series
%
Shopping centre capitalization rates
Capitalization rates of shopping centres in the major conurbations generally increased in the second quarter compared to the first quarter of 2020 due to the worsening outlook for the oversupplied retail property
Rode’s Report 2020:2 12 Standard capitalization rates
market, which has been dragged down further by the impact of Covid-19.
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PretoriaCape PeninsulaCentral WitwatersrandDurban
Capitalization ratesRegional shopping centres
Source of data: Rode's Time Series
%
The economy is expected to contract by 6,5% in 2020, according to the June Beeld consensus forecast by top economists. This will have enormous consequences as many people are expected to lose their jobs or experience salary cuts. In fact, the before-mentioned is already happening. Worryingly, consumers will avoid places of mass gatherings, like malls, even after the lockdown has been lifted completely. This implies that consumer spending will decline drastically in 2020, leading to sharply falling retail sales. The blow will be cushioned somewhat by income support measures (like UIF and the Solidarity Fund), credit purchases, lower interest rates and subdued inflation. A weak outlook for the sector means investors will require higher returns when investing in shopping centres and, consequently, higher capitalization rates.
Cap rates of regional shopping centres worsened slightly to 8,5% from 8,3% in the previous quarter. Note that regional centres are the second-largest type of shopping centre and have 50 000 to 100 000 m² rentable space (see Annexure 1 for shopping centre definitions).
We found that the national cap rates for the smaller community and neighbourhood centres averaged 9,7% and 10,3% respectively – also worse than in the previous quarter. Rode’s discussion on the performance of retail sales and trading densities, as well as vacancy rates by shopping centre size, is provided in Rode’s Retail Report publication.
Leaseback escalation rates
Table 2.1 shows that the average leaseback escalation rate (on new or renegotiated leases) in the second quarter of 2020 was about 8%. The small standard deviation of 0,5 percentage points suggests escalation rates vary between 7% and 9% but are closely clustered around the mean. Thus, we can say the mode3 is 8%.
The escalation rate is an (often unsuccessful) attempt by the market to forecast the average growth in market rentals until the expiry of the lease. Note that we define a leaseback as a lease agreement with a prime tenant that has, inter alia, a term at inception of 10 years or longer. The initial rental on a new custom-built property with a long lease and a single tenant should never be accepted as reliable market evidence. This is so because the developer would insist on an initial net yield that reflects the (high) building costs and land value at the time of negotiating the lease – and which has hardly any relation to market-related rentals that are negotiated when the long lease eventually expires or reverts to market levels.
This concludes our analysis of capitalization and escalation rates. The capitalization rate tables follow.
3 Mode = most often occurring number.
Rode’s Report 2020:2 13 Standard capitalization rates
Table 2.1 Prime industrial leaseback escalation rates
Quarter 2020:2
Mean SD N Change 2020:2 less 2020:1 Panellist codes
7,8 0,5 29 -0,2% AIR,ARN,BR,BVF,CG,CHR,DOR,ED,EK,EQV, ERE,GRV,IK,IKP,MAS,MPV,MUL,NEX,PC,PF, REA,REW,RK,SH,SHP,SUM,SWI,TE,TH,WHF
Interpretation tip: It is dangerous to rely on one quarter’s figure, as it may be an outlier owing to small sample sizes. Instead, consider the trend or contemplate using the average of at least two quarters for a more accurate assessment. For this reason, the graphs accompanying this article are smoothed.
A standard capitalization rate (colloquially referred to as a cap rate) is the expected net operating income for year 1, assuming the entire building is let at open-market rentals, divided by the purchase price. This calculation ignores VAT, transfer duty and income tax, and assumes a cash transaction (not paper). All references in Rode’s Report to “cap rates” and “capitalization rates” mean “standard capitalization rates”.
Capitalization rates for CBDs (excluding the Cape Town CBD) are of little use because when office properties are sold, they are invariably converted to flats.
The high standard deviation from the mean capitalization rate for office and industrial properties in some nodes, as reported in the accompanying capitalization rate tables, is indicative of the uncertainty prevailing in these nodes or areas. With few sales taking place, the evidence on ruling capitalization rates is thin and opinions vary more than in the more popular areas. This means the income-producing property market has become even more inefficient in these nodes, which makes the valuation of these properties a rather hazardous exercise.
We are indebted to our expert capitalization rate panel, comprising major owners and leading brokers who know their market segments intimately. This survey would not be possible without their invaluable contributions. Codes of those panellists who supplied information for this quarter's survey appear in the tables on the following pages. An explanation of the contributor codes can be found on p. xii.
Rode’s Report 2020:2 14 Standard capitalization rates
Table 2.2 Survey of capitalization rates (%)
Office buildings Means for quarter 2020:2
Best location Grade A: Multi-tenant
Grade A: Leaseback
Grade B: Multi-tenant
Grade C: Multi-tenant
Mean SD n Mean SD n Mean SD n Mean SD n Johannesburg CBD 11,4 0,8 5 10,8 0,7 4 12,2 0,7 4 13,5 0,8 3 Braamfontein 11,2 0,9 4 10,7 0,9 3 12,0 0,7 4 13,3 0,8 3 Parktown 11,2 1,2 2 10,6 1,1 2 12,0 1,0 2 13,5 0,5 2 Rosebank 9,6 1,1 5 9,2 1,3 3 10,6 1,0 4 11,6 1,3 3 Bedfordview 10,9 0,9 3 10,6 0,9 3 11,0 - 1 11,8 0,9 3 Sandton CBD 9,8 1,1 5 9,3 1,2 3 10,7 1,0 3 12,0 1,0 2 Rivonia 10,8 0,9 3 10,1 1,2 3 12,1 1,1 2 13,2 0,7 2 Bryanston 10,1 1,0 5 9,7 1,0 3 11,0 0,9 4 12,3 0,8 2 Sunninghill 10,8 0,9 4 10,7 0,9 3 11,7 1,4 3 12,6 1,3 3 Randburg Ferndale 11,3 1,3 3 10,9 1,0 3 11,7 1,5 3 12,8 1,7 3 Waterfall 9,4 0,9 2 9,1 1,1 2 - - - - - - Midrand 10,4 1,1 8 10,0 1,2 5 11,2 1,1 7 11,8 1,3 6Germiston CBD 14,5 - 1 12,8 - 1 13,6 1,3 3 14,9 0,9 2 Pretoria CBD 10,9 1,2 3 10,4 1,0 3 11,7 1,0 4 12,8 1,1 4 Hatfield 10,6 0,9 3 9,7 1,0 3 11,1 0,9 3 11,9 0,9 3Brooklyn 10,2 1,1 4 9,7 0,9 3 10,5 1,1 4 11,4 1,1 4Centurion 10,4 0,6 5 10,2 0,6 4 11,2 0,6 5 11,8 0,9 4Nieuw Muckleneuk 10,2 1,1 3 10,1 1,1 2 - - - 11,6 0,9 3 Menlyn/Lynnwood 10,0 0,9 4 9,3 0,7 3 10,6 0,8 5 11,4 0,8 4 Vaal Triangle 12,1 0,6 2 11,5 0,5 2 12,6 0,6 2 13,1 0,6 2 Nelspruit 10,4 0,9 7 - - - 10,4 1,1 7 11,8 0,8 7Polokwane - - - - - - - - - - - -Durban CBD 10,9 1,0 5 10,8 0,8 3 11,9 1,4 5 13,0 1,6 4 Berea 10,5 - 1 10,6 0,6 2 11,7 0,7 2 12,0 0,5 2Essex Terrace 12,0 - 1 12,0 - 1 14,0 - 1 15,0 - 1 Westway 11,0 - 1 11,0 - 1 12,0 - 1 12,0 - 1La Lucia Ridge 10,7 0,9 3 10,1 1,1 2 11,0 1,0 2 11,8 0,6 3 Pietermaritzburg 10,7 1,0 3 10,2 0,9 3 - - - 11,5 1,1 3 Cape Town CBD 9,5 0,6 9 9,2 0,7 8 10,0 0,6 5 10,9 0,8 6 Bellville CBD 10,0 0,7 5 9,7 0,8 3 10,1 0,3 3 11,1 0,8 4 Bellville Tyger Valley 9,6 0,7 5 9,3 0,8 5 9,4 0,1 3 10,9 0,8 5 Century City 9,5 0,7 7 9,0 0,3 5 9,3 0,2 3 10,7 0,9 5 Westlake 9,6 0,6 4 9,2 0,6 3 9,3 0,3 2 10,5 - 1Claremont 9,4 1,0 8 9,5 0,9 4 9,6 0,5 4 10,6 1,2 5Port Elizabeth CBD 10,8 0,3 2 10,0 0,0 2 11,6 0,8 3 12,4 1,1 3 Port Elizabeth dec. 10,8 0,3 2 10,0 0,0 2 12,0 0,5 2 13,2 0,4 2 East London CBD 10,0 - 1 10,5 - 1 12,0 - 1 14,0 - 1 East London dec. 11,0 - 1 12,0 - 1 13,0 - 1 15,0 - 1 Bloemfontein CBD 9,5 0,5 4 9,5 0,5 4 10,3 1,1 4 11,3 0,4 4 Bloemfontein dec. 9,4 0,5 4 9,4 0,5 4 10,6 1,1 4 11,3 0,4 4 George Central 9,2 0,5 3 9,3 0,3 2 9,8 0,2 3 9,8 0,3 2 George dec. 8,5 - 1 9,0 - 1 8,5 - 1 8,5 - 1 Windhoek 9,0 - 1 9,0 - 1 10,0 - 1 10,0 - 1n = Number of respondents - = Not available or fewer than two respondents
SD = See Glossary of terms and abbreviations in Annexure 1.
Table 2.3 Change in capitalization rates (% points)
Office buildings Means for quarter 2020:2 less quarter 2020:1
Best location Grade A:
Multi-tenant
Grade A:Lease-back
Grade B: Multi-tenant
Grade C: Multi-tenant
Panellist codes
Johannesburg CBD 0,4 0,5 0,3 0,3 CBR,CR,NEX,REW,TH,WHF Braamfontein 0,3 0,5 0,3 0,3 CBR,CR,REW,THParktown 0,6 0,7 0,7 0,6 CBR,TH Rosebank 0,1 0,3 0,3 0,0 CBR,CR,NEX,TH,WHF Bedfordview 0,2 0,5 0,0 0,1 CBR,TH,WHF Sandton CBD 0,4 0,5 0,7 0,7 CBR,CR,NEX,TH,WHF Rivonia 0,3 0,4 0,5 0,6 CBR,TH,WHF Bryanston 0,3 0,4 0,3 0,6 CBR,CR,NEX,TH,WHF Sunninghill 0,1 0,7 0,2 0,0 CBR,NEX,TH,WHF Randburg Ferndale 0,2 0,5 -0,1 0,0 CBR,TH,WHF Waterfall 0,5 0,5 - - CBR,TH Midrand 0,1 0,2 -0,1 0,0 CBR,CR,MAS,NEX,REA,RK,
TH,WHF Germiston CBD 1,0 1,0 0,3 0,5 CBR,TH,WHF Pretoria CBD 0,9 0,7 0,3 0,0 CBR,CRI,TH,WHF Hatfield 0,2 0,1 0,2 0,1 CBR,CRI,TH,WHF Brooklyn -0,1 0,5 0,3 0,2 CBR,CRI,TH,WHF Centurion 0,2 0,3 0,1 0,1 CBR,CR,CRI,MAS,TH,WHF Nieuw Muckleneuk -0,1 0,5 - 0,2 CBR,CRI,TH Menlyn/Lynnwood 0,2 0,5 -0,1 0,2 CBR,CR,CRI,TH,WHF Vaal Triangle 0,5 0,5 0,5 0,5 CBR,TH Nelspruit 0,4 - 0,1 0,1 KEL,MPV,ORI,PG,PM,PPS,
TH Polokwane - - - -Durban CBD -0,1 0,3 0,6 1,0 CBR,CR,ERE,TH,WHF Berea 0,0 0,5 0,5 0,5 CBR,ERE,TH Essex Terrace - - - - EREWestway - - - - ERELa Lucia Ridge 0,7 0,5 1,0 0,6 CBR,ERE,TH Pietermaritzburg 0,7 0,5 - 0,5 CBR,DOR,TH Cape Town CBD 0,4 0,4 0,4 0,1 CBR,CR,HP,IK,NEX,PF,SWI,
TH,WHF Bellville CBD 0,2 0,3 -0,2 0,3 CBR,COR,IK,SWI,TH Bellville Tyger Valley 0,3 0,2 -0,1 0,3 CBR,IK,PF,SWI,TH Century City 0,2 0,5 -0,2 -0,1 CBR,CR,HP,IK,PF,SWI,TH Westlake 0,4 0,7 0,0 0,0 CBR,COR,GB,HP,IK,IKP Claremont 0,3 - 0,4 0,4 CBR,COR,GB,HP,IK,NEX,
SWI,TH
Rode’s Report 2020:2 15 Standard capitalization rates
Table 2.3 (continued) Change in capitalization rates (% points)
Office buildings Means for quarter 2020:2 less quarter 2020:1
Best location Grade A:
Multi-tenant
Grade A: Leaseback
Grade B: Multi-tenant
Grade C: Multi-tenant
Panellist codes
Port Elizabeth CBD -0,1 0,0 -0,4 -0,3 ARN,BR,SUM Port Elizabeth dec. -0,3 -0,2 -0,2 0,1 ARN,SUMEast London CBD -0,5 - 0,0 0,0 CHREast London dec. 0,5 - 1,0 1,0 CHR Bloemfontein CBD 0,0 0,0 0,0 0,0 ED,EK,EQV,NRBloemfontein dec. 0,0 0,0 0,0 0,0 ED,EK,EQV,NRGeorge Central 0,0 0,0 0,1 0,0 BVF,GRV,MULGeorge dec. 0,0 0,0 0,0 0,0 MULWindhoek 0,0 0,0 0,0 0,0 TE
Table 2.4 Survey of capitalization rates (%)
Industrial buildings Means for quarter 2020:2
Best location Prime leaseback(AAA Tenant)
Prime quality non-leaseback
Secondary quality building
Prime industrialpark
Mean SD n Mean SD n Mean SD n Mean SD n Central Wits 9,8 0,7 6 10,1 0,6 7 11,0 0,6 7 10,2 0,6 7 West Rand 10,2 0,9 5 10,8 0,6 4 11,6 0,7 4 11,2 0,4 3 East Rand 9,5 0,8 7 10,2 0,5 7 11,0 0,8 7 10,3 0,7 7 Far East Rand 10,6 0,6 5 11,0 0,6 5 11,6 0,9 5 11,2 0,9 5 Pretoria 10,0 0,7 5 10,2 0,7 5 10,9 0,9 5 10,4 0,7 4 Vaal Triangle 11,4 - 1 11,1 0,6 2 11,8 0,8 2 11,6 - 1 Nelspruit - - - 9,7 0,8 8 11,5 0,6 8 9,8 0,8 8 Polokwane - - - - - - - - - - - - Durban 9,5 0,7 6 9,9 0,7 7 10,9 1,0 7 10,6 0,8 6 Pietermaritzburg 10,0 0,8 3 10,2 1,0 3 10,9 1,0 4 10,5 0,7 3 Cape Peninsula 9,2 0,7 10 9,7 0,6 11 10,3 0,9 8 9,8 0,7 9 Port Elizabeth 10,0 0,9 3 10,4 0,6 4 11,2 0,7 4 10,4 0,7 4 East London 10,4 0,9 2 11,1 0,6 2 12,0 0,5 2 11,1 0,6 2 Bloemfontein 10,9 0,6 4 10,6 0,8 3 12,1 0,3 4 10,8 0,6 4 George 9,9 1,0 3 9,7 1,0 4 10,5 1,3 4 10,1 0,9 4 Windhoek 9,0 - 1 9,0 - 1 9,0 - 1 10,0 - 1 n = Number of respondents - = Not available – fewer than two respondents SD = See Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 16 Standard capitalization rates
Table 2.5 Change in capitalization rates (% points)
Industrial buildings Means for quarter 2020:2 less quarter 2020:1
Best location Prime leaseback
Prime non-
leaseback
Secondary quality building
Prime Industrial
park Panellist codes
Central Wits 0,4 0,3 0,2 0,2 CBR,CR,REA,REW,RK,SHP,THWest Rand 0,1 0,1 0,2 0,3 CBR,CR,SHP,TH,WHFEast Rand 0,2 0,3 0,1 0,1 CBR,CG,CR,PPR,SHP,TH,WHF Far East Rand 0,2 0,2 0,2 0,2 CBR,CG,SHP,TH,WHFPretoria 0,4 0,2 0,1 0,2 CBR,CR,MAS,TH,WHFVaal Triangle 1,0 0,5 0,5 1,0 CBR,THNelspruit - 0,3 0,1 0,3 CBR,KEL,MPV,ORI,PG,PM,
PPS,TH Polokwane - - - -Durban 0,3 0,4 0,2 0,5 CBR,CR,ERE,NEX,PC,REA,
SH,TH Pietermaritzburg 0,3 0,2 0,2 0,5 Cape Peninsula 0,2 0,3 0,3 0,4
Port Elizabeth 0,4 0,4 0,2 0,3
CBR,CR,DOR,THAIR,CBR,CR,HP,IK,IKP,NEX, PF,SWI,TH,WD,WHF ARN,BR,SUM,TH
East London 0,5 1,0 0,8 0,5 CHR,THBloemfontein 0,0 0,3 0,3 0,3 ED,EK,EQV,THGeorge 0,3 0,3 0,3 0,3 BVF,GRV,MUL,THWindhoek 0,0 0,0 0,0 0,0 TE
Table 2.6 Survey of capitalization rates (%): Shopping centres
Means for quarter 2020:2
Best location Super-regional Regional Small regional Community Mean SD n Mean SD n Mean SD n Mean SD n
Witwatersrand 8,3 1,0 3 9,0 1,1 3 9,3 1,3 3 10,1 1,2 3 Pretoria 8,2 1,0 3 8,6 1,0 3 9,1 1,2 3 9,5 1,1 4 Vaal Triangle 9,9 - 1 10,3 - 1 11,0 - 1 11,5 - 1 Nelspruit - - - 8,3 0,8 7 8,4 1,1 7 9,0 1,1 6 Polokwane 10,0 - 1 10,3 - 1 11,0 - 1 11,5 - 1 Durban 8,8 1,2 4 9,6 1,5 5 10,0 1,6 4 10,3 1,4 4 Pietermaritzburg 9,0 1,0 2 9,1 1,1 2 9,5 1,5 2 10,3 1,3 2 Cape Town 8,2 0,9 6 8,6 0,8 6 9,0 0,9 7 9,2 0,9 6 Port Elizabeth- Uitenhage
8,6 1,1 3 9,3 0,7 4 9,3 1,3 3 9,9 1,0 4
East London 9,6 0,6 2 10,1 0,6 2 10,8 0,3 2 11,9 0,2 2 Bloemfontein 9,1 1,1 2 9,5 0,7 4 10,0 0,8 3 10,1 0,9 4 Platteland 10,5 - 1 10,8 - 1 - - - 10,9 0,9 2 Townships 10,0 - 1 10,3 - 1 11,0 - 1 11,3 - 1 George 8,7 0,9 3 8,7 0,9 3 9,2 1,0 3 9,5 1,0 3 Windhoek 9,0 - 1 9,0 - 1 9,0 - 1 9,0 - 1 n = Number of respondents - = Not available SD = See Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 17 Standard capitalization rates
Table 2.6 (continued) Survey of capitalization rates (%): Shopping centres
Means for quarter 2020:2
Best location Neighbourhood Local convenience Big box/Retailer
warehouse Mean SD n Mean SD n Mean SD n
Witwatersrand 10,8 0,9 3 11,3 0,9 3 10,8 0,9 3 Pretoria 9,9 1,2 4 10,7 1,2 4 10,0 0,9 4 Vaal Triangle 12,0 - 1 12,4 - 1 11,8 - 1 Nelspruit 9,4 1,0 7 10,3 0,8 7 9,9 0,9 6 Polokwane 12,0 - 1 12,4 - 1 11,8 - 1 Durban 11,6 2,2 4 11,9 1,8 5 11,7 2,0 4 Pietermaritzburg 10,7 1,2 2 11,2 1,2 2 10,9 0,9 2 Cape Town 9,7 0,7 6 10,0 0,9 6 9,8 0,7 5 Port Elizabeth- Uitenhage
10,1 1,1 4 10,7 1,0 4 10,5 0,6 4
East London 11,5 0,5 2 12,2 0,2 2 11,2 0,7 2 Bloemfontein 10,3 0,9 4 11,0 1,0 4 11,2 0,8 4 Platteland 11,0 1,0 2 11,8 0,8 2 10,9 0,9 2 Townships 11,5 - 1 12,2 - 1 11,8 - 1 George 9,8 1,1 4 10,2 1,0 4 9,9 0,9 3 Windhoek 9,0 - 1 9,0 - 1 9,0 - 1 n = Number of respondents - = Not available SD = See Glossary of terms and abbreviations in Annexure 1.
Table 2.7 Change in capitalization rates (% points): Shopping centres
Means for quarter 2020:2 less quarter 2020:1
Best location Super regional Regional Small
regional Commu-
nity Panellist codes
Witwatersrand 0,2 0,5 0,3 0,5 IK,REW,TH Pretoria 0,2 0,3 0,0 0,2 MAS,REW,TH,WHF Vaal Triangle 1,0 1,0 1,0 1,0 TH Nelspruit - 0,3 0,4 0,5 KEL,MPV,ORI,PG,PM,PPS,
TH Polokwane 1,0 1,0 1,0 1,0 REW,TH Durban 0,7 1,3 1,0 0,7 ERE,REW,TH,WHF,ZZ Pietermaritzburg 0,5 - 0,6 1,0 DOR,REW,TH Cape Town 0,5 0,5 0,2 0,2 AS,IK,PF,REW,SWI,TH,
WHF Port Elizabeth- Uitenhage
-0,1 0,3 -0,2 0,3 ARN,BR,REW,SUM,TH
East London 0,2 0,5 0,5 1,2 CHR,REW,TH Bloemfontein 0,5 0,3 0,3 0,4 ED,EK,EQV,REW,TH Platteland 1,0 1,0 - 0,5 EQV,MAS,TH Townships 1,0 1,0 1,0 1,0 REW,TH George 0,3 0,3 0,3 0,3 BVF,GRV,MUL,TH Windhoek 0,0 0,0 0,0 0,0 TE
Rode’s Report 2020:2 18 Standard capitalization rates
Table 2.7 (continued) Change in capitalization rates (% points): Shopping centres
Means for quarter 2020:2 less quarter 2020:1
Best location Neighbour-hood
Local convenience
Big box/Retailer warehouse
Panellist codes
Witwatersrand 0,4 0,5 0,9 IK,REW,THPretoria 0,2 0,2 0,2 MAS,REW,TH,WHFVaal Triangle 1,0 1,0 1,0 THNelspruit 0,4 0,3 0,4 KEL,MPV,ORI,PG,PM,PPS,TH Polokwane 1,0 1,0 1,0 REW,THDurban 1,5 1,3 1,5 ERE,REW,TH,WHF,ZZPietermaritzburg 0,8 0,5 0,5 DOR,REW,THCape Town 0,4 0,2 0,3 AS,IK,PF,REW,SWI,TH,WHF Port Elizabeth- Uitenhage
0,3 0,3 0,3 ARN,BR,REW,SUM,TH
East London 0,5 0,5 0,5 CHR,REW,THBloemfontein 0,3 0,3 0,6 ED,EK,EQV,REW,TH Platteland 0,5 0,5 0,5 EQV,MAS,THTownships 1,0 1,0 1,0 REW,THGeorge 0,3 0,3 0,3 BVF,GRV,MUL,THWindhoek 0,0 0,0 0,0 TE
Table 2.8 Survey of capitalization rates (%): Street-front shops
Means for quarter 2020:2
Best location Metro CBD Decentralized
Mean SD n Mean SD nJohannesburg 11,3 1,0 4 11,1 1,0 3Pretoria 10,8 1,1 4 10,8 1,1 3Vaal Triangle 12,9 - 1 12,5 - 1Nelspruit 12,1 0,3 7 11,2 0,6 7Polokwane - - - - - -Durban 11,6 1,1 3 11,2 1,2 2Pietermaritzburg 11,4 1,4 2 11,3 1,3 2Cape Town 11,3 0,6 3 11,1 0,4 3Port Elizabeth 11,6 0,7 4 11,2 1,0 4East London 11,1 1,6 2 12,8 0,3 2Bloemfontein 10,4 1,4 4 10,7 1,1 4George 10,2 1,1 4 10,6 1,1 4Windhoek 9,0 - 1 9,0 - 1n = Number of respondents - = Not available SD = Standard deviation. See Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 19 Standard capitalization rates
Table 2.9 Change in capitalization rates (% points): Street-front shops
Means for quarter 2020:2 less quarter 2020:1 Best location Metro CBD Decentralized Panellist codes
Johannesburg -0,1 0,3 IK,REW,TH,WHFPretoria 0,3 0,6 MAS,REW,TH,WHFVaal Triangle 1,0 1,0 THNelspruit 0,1 0,1 KEL,MPV,ORI,PG,PM,PPS,TH Polokwane - -Durban 0,7 0,5 ERE,TH,WHFPietermaritzburg 0,8 0,5 DOR,THCape Town 0,4 0,7 IK,SWI,THPort Elizabeth 0,1 0,3 ARN,BR,SUM,THEast London 0,0 0,5 CHR,THBloemfontein 0,3 0,3 ED,EK,EQV,THGeorge 0,3 0,3 BVF,GRV,MUL,THWindhoek 0,0 0,0 TE
Rode’s Report 2020:2 20 Standard capitalization rates
Rode’s Report 2020:2 21 Capitalization rate equations
Chapter 3: Capitalization rate equations
How to estimate capitalization rates – anywhere
Kobus Lamprecht
This chapter provides the reader with a handy, updated tool to estimate the market capitalization rates of office and industrial properties anywhere in South Africa, provided the valuer is confident about the subject property’s gross market rental rate.
As the reader will see below, in this cross-sectional study,1 market rental rates are amazingly successful in explaining the level of capitalization rates. On reflection, though, this should not be all that surprising, considering that all the good and bad news pertaining to a property is encapsulated in the ruling market rental rate. Here we think of rental-level drivers such as:
Location Typology (offices vs industrial
property vs shopping centres, etc.) Risk (examples of varying risk
profiles are a leaseback comparedwith a multi-tenanted property; therobustness of the covenant)
Grade/age.
An important risk factor typically not reflected in a rental is the design of the building, as it affects its ability to be re-let. Here one thinks of purpose-built buildings.
Thus, the moderately strong relationship between market rental rates and
1 A cross-sectional analysis is a type of observational study that analyses data from a population, or a representative subset, at a specific point in time. This is in contrast to longitudinal analyses, for instance using historical trends to do forecasts.
capitalization rates allows the researcher to build a regression model with which to estimate the capitalization rate.
Office building equation
In our regression analysis of office buildings, we use the market capitalization rates (dependent variables) and gross market rental rates (predictors or independent variables) of grade A, B and C buildings in the areas surveyed by Rode’s Report (RR). The source of the national equation given below is this issue of RR. The regression is based on 51 observations in mainly decentralized nodes.
The updated equation is:
office capitalization rate % = 14,149 – (0,028* gross rental)
where:
gross rental = the market gross rental rate per rentable m2 per month for grade A, B or C office buildings in quarter 2020:2.
The r-squared = 0,71 (which means the level of market rentals explains 71% of the variation in capitalization rates, without controlling for other predictors). The standard error (SE) is 0,68 and n = 51.
Rode’s Report 2020:2 22 Capitalization rate equations
Readers should note that it is not advisable to use this function for gross market rental rates that fall much outside the range of R67/m²/month to R185/m²/month.
Example:
If the market gross office rental rate is R150 per rentable m2 per month, then the office capitalization rate % is:
= 14,149 – (0,028 * 150) = 9,9%.
Industrial property equation
This national equation expresses the relationship between the capitalization rates and gross market rental rates of prime non-leasebacks and secondary industrial buildings. Please note, the gross market rental rates are those applicable to 1 000-m2 units. The source of the data is this issue of Rode’s Report. The industrial regression equation, which is based on 14 observations, includes most major primary and secondary industrial cities.
The updated equation is:
industrial capitalization rate % = 13,575 – (0,0667 * gross rental)
where:
gross rental = the gross market rental per rentable m2 per month as in quarter 2020:2 for prime non-leaseback or secondary industrial space of 1 000 m2, located in primary and secondary industrial cities.
The r-squared = 0,72 (which means market rental levels explain 72% of the variations in capitalization rates, without controlling for other predictors). The standard error (SE) is 0,31 and n = 14.
It is not advisable to use this function for gross market rental rates that fall much outside the range of R28/m²/month to R63/m²/month. Also, remember to use the rental rate applicable to a notional floor area of 1 000 m² (even if the subject property’s actual floor area is completely different).
Example:
If the gross industrial rental for a 1 000-m² building, located in a primary or secondary city, is R50 per rentable m2 per month, then the industrial capitalization rate % is:
= 13,575 – (0,0667 * 50) = 10,2%.
Warning: To guard against volatility in the latest survey data, the reader is advised also to consult the regression equation and its applicable rental rate in the previous issue of RR, and to consider using a two-quarter average capitalization rate (unsurveyed) if necessary.
Rode’s Report 2020:2 23 Capitalization rate equations
y = -0,028x + 14,149
r² = 0,7
8.5
9.5
10.5
11.5
12.5
13.5
60 90 120 150 180
Cap
italli
zatio
n ra
te (
%)
Gross market rental (R/m2/month)
Office unsurveyed capitalization rate
y = -0,0667x + 13,575
r² = 0,7
9.5
10.0
10.5
11.0
11.5
12.0
12.5
25 35 45 55 65
Cap
italiz
atio
n ra
te (
%)
Gross market rental (R/m2/month)
Industrial unsurveyed capitalization rate
Rode’s Report 2020:2 24 Listed property
Chapter 4: Listed property
Listed property distributions drying up
Kobus Lamprecht
Listed property prices recovered some ground in the second quarter, but still were down around 45% for the year by the end of June. In fact, since the beginning of 2018 the SA Listed Property Index (SAPY) has declined year on year every month, as shown in the chart. The declines have led to sharply rising trailing income yields,1 which reflect dismal earnings expectations. A vital point to remember is that the property market was already oversupplied before Covid-19 emerged in South Africa in March. This implies that the pandemic will prolong the oversupply situation, with a sustained upturn now several years away.
-80
-40
0
40
80
-4
0
4
8
12
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
SAPY yieldSAPY price
Yearly change in listed property pricesvs
Yearly change in listed property yields
Cha
nge
in p
rice
(%;
y-o-
y)
Change
inyields
(%-points; y-o-y)
Source of data: JSE
The latest company financial results discussed later make for bleak reading, characterised by downward rental reversions, higher operating expenses, rising vacancies, decreasing asset valuations and more debt. These factors contribute to lower profitability, with distributions drying up. Most companies
decided to refrain from, or delay, declaring distributions to bolster their balance sheets due to the extreme uncertainty caused by Covid-19.
The good news is that there continue to be some companies that buck the downtrend trend. These companies have portfolios focused on logistics and self-storage. Industrial properties in the logistics segment seem to be the most defensive property type, with rental collections for April and May mostly in the high nineties as warehouses were mostly in operation to supply essential goods during the hard lockdown. The growing popularity of online shopping – albeit from a very low base – does not hurt either.
Rural retail has also performed well in the past, but we are not so sure if this will hold due to the devastating impact of Covid-19 on consumer spending through job losses and salary cuts, not to mention deaths due to underlying comorbidities like HIV, undernourishment and diabetes.
Evidence from abroad and in SA shows that companies exposed to retail and hospitality received the lowest percentage of total rental income in April and May. Many of the companies (think restaurants, travel agencies) in these two sectors will shut permanently due to the financial impact of the crisis. It is going to take a long time before shopping patterns and tourism return to normal due to concerns about the spread of the virus.
1 A trailing yield is the distribution of the past financial year divided by the current price. A forward yield is the expected distribution of the next financial year divided by the current price. The latter is similar to the capitalization rate of directly held property, which is also forward looking.
Rode’s Report 2020:2 25 Listed property
Office property seems to be not so severely impacted in terms of rent collection by landlords as initially thought, with many companies able to work from home and still receive revenue, albeit less in some instances. This means office tenants generally can still mostly pay rent, although in some cases rental relief will have to be negotiated.
Listed property versus other asset classes
The total return of the SA REITs Index (excludes property developers and non-SA REITs) declined by 49% in the first five months of 2020, according to the SA REIT Association. It was also a torrid time for equities, with the JSE All Share Index down 10%. Bonds and cash delivered total returns of 1,5% and 2,7% respectively.
Performance of SA-focused JSE-listed property funds
In Table 4.1 we show the individual performances of some JSE-listed property funds for the first five months of 2020 and over the three years to May 2020, expressed as total returns (income yield plus capital return). No SA-focused company managed to deliver a positive total return, except Rebosis, but we think this is merely a result of buyers taking advantage of its low share price after a dismal past few years. In fact, Rebosis delivered the worst total return (-66%) of all the companies shown in the table over the past three years. The standouts in the last three years were Stor-Age and Equites, which delivered a total return of 13% and 5% respectively. We discuss their performance in the section that follows.
Rode’s Report 2020:2 26 Listed property
Table 4.1 Total returns on listed property funds
Jan to May 2020 and 3 years to May 2020 Performance of individual stocks
Jan-May 2020 3 years to May 2020* Accelerate -53,2% -44,7% Arrowhead A -40,3% -7,1% Arrowhead B -64,5% -35,7% Delta -40,8% -55,9% Dipula-A -46,3% -11,7% Dipula-B -44,3% -37,2% Emira -54,7% -17,4% Equites -14,8% 5,3% Fairvest -28,9% -4,6% Fortress-A -38,3% -5,1% Fortress-B -59,1% -50,1% Growthpoint -38,4% -12,5% Hospitality -62,5% -35,6% Hyprop -69,6% -43,7% Indluplace -38,5% -31,8% Investec Property Fund -40,7% -10,5% Liberty 2D -12,3% -10,2% Octodec -63,2% -31,7% Rebosis 9,4% -66,3% Redefine -74,6% -38,4% Resilient -42,7% -24,1% SA Corporate -67,6% -38,4% Safari -5,7% -12,8% Spear -35,8% -8,3% Stor-Age -12,0% 12,6% Texton -56,4% -39,2% Tower -48,0% -22,6% Vukile -68,2% -24,7% *AnnualisedSource: SA REIT Association; Bridge Fund Managers
In Table 4.2 we show the change in distributions of various SA listed property companies for the half- and full-year periods ended February and March 2020. These financial results are backward-looking as the lockdown only started in the last week of March.
Most companies decided to refrain from, or delay, declaring distributions to bolster their balance sheets. No company provided its distribution expectations for the next reporting period, which is understandable, given the exceptional circumstances caused by Covid-19. The few companies that declared dividends generally did quite well, like Exemplar, Equites, Stor-Age and Spear.
2 Weighted average lease term to expiry
Exemplar’s performance was exceptional as it boasted inflation-beating distribution growth of 12% (on an annualised basis) in the year to February 2020. It is focused on rural shopping centres in what it calls “underserviced” areas, characterised by high population growth. Fairvest, which also competes in the rural market, also shone with good results in its last half-year reporting period in 2019.
Another company that stood out above the market was logistics-focused Equites, which delivered distribution growth of 9,4% in the year ended February 2020. The company had a high WALE2 of 10 years, a low loan-to-value ratio of 26% and saw stellar like-for-like rental growth of 7%.
Rode’s Report 2020:2 27 Listed property
Despite the lockdowns, Equites collected almost all its SA and UK rentals for April and May, as a high percentage of its portfolio is related to essential services (about 75% in SA).
Western Cape-focused Spear, a small REIT, managed to grow its distribution by 6% in the year to February 2020. It’s like-for-like rental income grew by 5,4% driven by sharp office rental growth, which represents 27% of its portfolio by gross lettable area. Spear reported that it received 92% of its total April rental billing, while not receiving any income from its hospitality portfolio, which represents 6% of its total portfolio. Its total return was down 36% in the first five months of 2020.
Stor-Age shone with distribution growth of 5% in the year to February 2020. The self-storage property market is proving very resilient, with the company reporting rent collections of over 93% and 98% in April and May in SA and the UK respectively. The company also boasts a conservative gearing (loan to value) of 30%.
Indluplace, the largest residential fund on the JSE, recorded a 9% drop in distributable income in the half-year ended March 2020 and decided to defer its distribution payment to the end of its financial year. Its residential portfolio, mostly Gauteng-based, had a vacancy rate of 5,5%, its best in years. Indluplace’s outlook is clouded by the prospect of increased arrears and bad debts, with vacancy rates likely to rise. The company also said that there is no opportunity for rental increases this year, which is not a good sign with costs increasing sharply.
Another residential player is Octodec, which owns about 9 500 apartments in the CBDs of Johannesburg and Pretoria. Its residential vacancy rate rose to 11% in the half-year ended February 2020 compared to 6,7% in the comparable period a year ago. Octodec’s distributable earnings per share declined by 5,5%. To conserve cash, it did not declare a distribution. A positive about Octodec is that its shopping centres are all neighbourhood/convenience centres in Pretoria and Johannesburg, which are outperforming larger shopping centres – and we believe this trend will continue due to Covid-19 as shoppers try to avoid malls. Its office portfolio is also mostly leased to government entities, which helps with rental collections – or does it?
The high residential vacancy rate of 11% in the lower middle-market segment tells a story of great pain in this group. Now imagine the government starts laying off civil servants …
Delta reported that it received 80% of its April and May rental billing as government-related office tenants are generally paying well, which should help with cash flow. Delta has been struggling for some time, with its distributable earnings per share down 38% for the year ended February 2020.
In sum, company financials continue to disappoint with distributions drying up, but there are some outliers. Prospects are dim given the sharp contraction in the global and SA economies. Some companies are at risk of losing their REIT status and associated tax benefits if they do not pay at least 75% of their distributable income as dividends to investors within four months of their financial year-end period. Fasten your safety belts because it’s going to be a bumpy ride.
Rode’s Report 2020:2 28 Listed property
Table 4.2 Change in distributions for half- and full-year periods ended February 2020
Company Distribution change
2019 Distribution change
2020 Period
Delta -43,0% -# Full year Dipula 0,6% -* Half-yearEquites 11,8% 9,4% Full year Exemplar N/A 11,9% Full yearOctodec 0,0% -* Half-year Rebosis -* -* Half-yearRedefine 4,0% -* Half-year Spear 10,1% 6,1% Full year
Change in distributions for half- and full-year periods ended March 2020 Indluplace -22,8% -* Half-yearInvestec 5,1% -# Full year Stor-Age 9,1% 5,0% Full year* No distribution declared for the period.# Declared a distribution for first half of the year, but not for the second half. Source: Financial results of the various listed property funds
Rode’s Report 2020:2 29 Office rentals
Chapter 5: Office rentals
Office market to feel the pain in coming quarters
Kobus Lamprecht
The office market was in deep trouble even before Covid-19 came along in March this year, and was characterised by high vacancy rates (see Chapter 6). Rode’s second-quarter data show that national decentralized rental growth slowed to 1% year on year, compared to 4% growth in the first quarter. Rentals fell by 1% from first-quarter levels.
Importantly, Rode’s second-quarter surveys were conducted in May 2020 when transaction volumes were very limited due the lockdown, which forced estate agencies to temporarily close or work from home, preventing the physical inspection of properties. One would imagine that convincing a tenant to rent a property without physically seeing it would be difficult, even if you had the best technology at your disposal. In fact, out of Rode’s total survey respondents, 56% said the first-quarter data were still applicable due to lack of new transactions. Almost all other respondents provided data indicative of a weaker market. We expect the real impact of the coronavirus crisis will only be seen in coming quarters as transaction volumes increase. Leases that come up for renewal will see sharp rental reversions as most landlords aim to keep tenants as the risk of finding good new tenants in this market is high. Vacancies are likely to rise in some cases where landlords are not flexible and can afford to lose tenants.
A positive aspect for the market is that international and domestic REITs have reported a high percentage of rental collections in April and May, probably as most companies that were forced to close their offices could work from home and still obtain some form of income. Other companies more severely hit by the virus-related lockdown received rental holidays or
steep discounts. Despite reporting high rental collections, office-focused REITs have struggled on the JSE in 2020 (see Chapter 4) on concerns about long-term demand prospects as the coronavirus crisis could lead to a new "work from home" paradigm. However, this impact will be offset somewhat by more space per employee required to adhere to social distancing guidelines.
Below we first discuss the national rental performance before delving into trends in the major cities.
National rentals
Nationally, nominal market rentals for grade-A office space in the second quarter of 2020 increased by 1% compared to a year ago ̶ lower than the 4% year-on-year growth recorded in the first quarter of 2020, according to Rode’s office market survey. This was the weakest year-on-year change in rentals since 2013. Rentals decreased by 1% compared to the first quarter of 2020. This implies that rentals moved even deeper into negative territory when measured in real terms, after accounting for building-cost inflation (BER BCI) of around 8%.
Rentals in decentralized nodes
Over the past year, grade-A rentals grew by about 4% in both Cape Town and Durban, while growing by 1% in Johannesburg. Rentals declined by 3% in Pretoria. Almost all cities recorded lower rentals compared to the first quarter, but not by more than 2%. This implies that no city managed to record above-inflation rental growth. Readers who subscribe to the sister publication Rode’s SA Property Trends, will know this is what we have been forecasting since a few years ago.
Rode’s Report 2020:2 30 Office rentals
160
140
120
100
80
60
4000 02 04 06 08 10 12 14 16 18 20
PretoriaJohannesburgDurbanCape Town
Nominal decentralized grade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
The graph that depicts nominal rentals in decentralized locations clearly shows that rental movements went onto a lower growth path from 2009/10 following the international financial crash. Analysts agree that the current crisis is worse, which doesn’t bode well for rentals in years to come. Below we discuss the current trends in the different cities in more detail.
Johannesburg decentralized grade-A rentals increased by only 1% year on year as mentioned above. Unsurprisingly, almost every node performed weaker than at the start of the year, as shown in the charts. Rosebank and Sandton saw rental growth of 2% and 1% respectively compared to a year ago, much weaker than in the first quarter. Rentals fell by up to 2% in Parktown and Randburg/Ferndale. The decentralized vacancy rate for grades A and B office space combined was already a high 13% in the first quarter of 2020 (see Chapter 6). The harsh reality is that contractual rentals in Johannesburg will head south on future reversions to market levels.
200
160
120
80
4000 02 04 06 08 10 12 14 16 18 20
ParktownRosebankRivoniaSandton CBD
Nominal Johannesburg decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
Note that when we use building costs as a deflator, we look at the movement of rentals over time from a developer’s point of view.
320
280
240
200
160
120
8000 02 04 06 08 10 12 14 16 18 20
ParktownRosebankRivoniaSandton CBD
Real Johannesburg decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
Declining real rentals indicate that new developments are becoming less viable, holding all other factors constant. Reflecting this reality, developments under construction and building plans in the pipeline have declined sharply on a national level (see Chapters 6 and 11 for more information regarding building activity).
Noteworthy in the accompanying graph is the downtrend in Parktown and Rivonia rentals.
200
160
120
80
40
00 02 04 06 08 10 12 14 16 18 20
Randburg FerndaleBryanstonIllovoSandton CBD
Nominal Johannesburg decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
350
300
250
200
150
100
5000 02 04 06 08 10 12 14 16 18 20
Randburg FerndaleBryanstonIllovoSandton CBD
Real Johannesburg decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
In Pretoria decentralized, nominal rentals in the second quarter of 2020 fell by 3%
Rode’s Report 2020:2 31 Office rentals
compared to a year ago. This implies that rentals declined significantly in real terms after adjusting for building-cost inflation.
200
160
120
80
4000 02 04 06 08 10 12 14 16 18 20
CenturionBrooklyn/WaterkloofHatfieldMenlyn
Nominal Pretoria decentralizedgrade-A office rentals
R/m
²(log
sca
le)
Smoothed
Source of data: Rode's Time Series
220
200
180
160
140
120
10000 02 04 06 08 10 12 14 16 18 20
CenturionBrooklyn/WaterkloofHatfieldMenlyn
Real Pretoria decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
Durban decentralized rental growth stayed at 4% year on year in nominal terms, propped up by solid rentals in La Lucia/Umhlanga. This implies that rentals again failed to outpace building-cost inflation. Rentals struggled in Berea, where vacancy rates moved up to 10,8% in the first quarter, above the 9% average of 2019. Durban decentralized rental growth will probably also move lower in the near term as more transactions are processed.
160
140
120
100
80
60
4000 02 04 06 08 10 12 14 16 18 20
BereaLa Lucia Ridge Westville
Nominal Durban decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
240
200
160
120
8000 02 04 06 08 10 12 14 16 18 20
BereaLa Lucia Ridge Westville
Real Durban decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
180
160
140
120
100
80
60
4000 02 04 06 08 10 12 14 16 18 20
Tyger ValleyClaremontCentury City
Nominal Cape Town decentralizedgrade-A office rentals
R/m
²(log
sca
le)
Smoothed
Source of data: Rode's Time Series
300
250
200
150
10000 02 04 06 08 10 12 14 16 18 20
Tyger ValleyClaremontCentury City
Real Cape Town decentralizedgrade-A office rentals
R/m
²(l
og s
cale
)
Smoothed
Source of data: Rode's Time Series
In the second quarter of 2020, Cape Town decentralized office rentals grew by 4% year on year in nominal terms, slowing from the 7% growth recorded in the first quarter. This was the slowest rental growth since the beginning of 2018 and was also the first time since that period that rentals grew slower than the building-inflation rate. However, compared to the rest of South Africa, Cape Town rentals still performed relatively better compared to a year ago.
Noteworthy is the underperformance of Tyger Valley since about 2015.
Rode’s Report 2020:2 32 Office rentals
Pioneer rentals
Table 5.1 shows the difference between pioneer rentals and grade-A market rentals as in the second quarter of 2020. This the reader can use as a rough indication of prospects for eventual market rental growth should the deus ex machina come down from the skies.
Pioneer rental levels often represent leases signed on newly erected on-demand buildings like leaseback developments, and these rentals inevitably reflect today’s building costs as developers naturally expect a fair initial yield on their development costs.
Thus, when the economy eventually climbs out of its current lethargy, market rentals will shoot up to levels closer to these pioneer rentals.
Note in Table 5.3 that the standard deviations are higher than under normal market conditions. We ascribe this to the extreme market uncertainty about what the market rental average should be in a node. It is also likely that standard deviations are larger in the nodes where landlords have had to provide significant discounts to keep tenants, causing a widening spread between the highest and lowest rentals.
This concludes our section on office rentals. The office rental tables follow.
Recap: nominal versus real rentals
The term “nominal” refers to money rentals, whereas the term “real” refers to nominal less inflation.
Rode mostly deflates nominal rentals using the Bureau for Economic Research’s Building Cost Index (BER BCI) to arrive at real rentals. The rationale for using building costs as deflator is the substitution principle and because building costs can serve as a proxy for replacement costs. To illustrate, why would you buy a property at R110 when you could have it built (replaced) for R100? When rentals are low relative to replacement costs, the upside potential for rentals is great and vice versa. Thus high real rentals (relative to previous periods) may be an indication of a market that is vulnerable to a downswing, and low real rentals indicate great upside potential.
Our sincere thanks to our expert panellists for the information they supplied. Codes of the brokers and landlords who contributed to this quarter's survey appear in the table on p. 33. An explanation of the codes can be found on p. xii.
Table 5.1 Pioneer office rentals
Highest gross nominal market rental rate achieved Quarter 2020:2
Rands per rentable m², gross leases (excl. VAT)
Pioneer Normal grade A mean
Inferred growth potential
Johannesburg dec. 225 149 51%Pretoria dec. 180 151 19%Durban dec. 205 143 44%Cape Town dec. 250 152 64%
Rode’s Report 2020:2 33 Office rentals
Table 5.2 Market rental rates for office buildings
Quarter 2020:2 Rands per rentable m² per month, gross leases (excl VAT)
Grade A+
mean
Grade A
mean
Grade B
mean
Grade C
mean Panellist codes
Johannesburg CBD - 96,00 84,60 57,00 AS,BR,CR,FAS,GPI,REA Braamfontein - 99,33 95,25 74,33 AS,BR,CR,FAS,GPI Sandton CBD 229,61 172,27 129,86 101,86 AP,AS,AV,BR,CBR,CR,GB,GPI,LIB,MR,
REA,SWI,TKC,WHF,WP Dunkeld West 166,63 147,89 122,06 96,92 ANV,AS,BR,CR,GB,GPI,MR,SWI,WHF Wierda Valley 161,80 146,19 121,25 107,50 AP,AS,BR,CR,GB,GPI,SWI,WHF Randburg Ferndale 99,00 93,67 79,50 66,75 AS,BR,GPI,NH,PRS,SWI,WHF Rivonia 127,80 119,72 95,17 77,79 AS,AV,BR,CR,GB,GPI,MR,SWI,WHFRosebank 232,46 184,27 134,95 104,44 ANV,AP,AS,AV,BR,CBR,CR,GB,GPI,MR,
IllovoSWI,TKC,WHF
210,50 164,50 137,59 112,67 AS,AV,BR,CR,FAS,GB,GPI,MR,SWI,TKC,WHF
Illovo Boulevard 205,92 163,75 141,43 117,00 AS,BR,CR,GB,GPI,MR,SWI,WHF Chislehurston 168,75 146,33 131,00 102,50 AP,AS,BR,GPI,WHFParktown 162,89 130,67 105,19 85,80 ANV,AP,AS,AV,BR,CR,FAS,GB,GPI,
MR,SWI,TKC,WHF Richmond/Milpark - 116,25 89,00 66,25 AP,BR,GPIBedfordview 150,75 139,60 110,92 88,50 AS,BR,CR,GPI,TKC,WHFBruma 127,50 104,00 89,40 80,00 BR,CR,GPI,TKC,WHFWoodmead 150,67 133,67 107,65 89,20 AP,AS,AV,BR,CR,GB,GPI,REA,SWI,
WHF,WP Sunninghill 123,50 109,33 86,00 76,83 AS,AV,BR,CR,GB,GPI,MR,REA,SWI,
WHF Bryanston/Epsom Downs
191,92 150,73 116,55 93,50 AS,AV,BR,CBR,CR,GB,GPI,MR,SWI, TKC,WHF,WP
Fourways 178,61 145,78 106,50 90,88 AS,AV,BR,CBR,CR,GB,GPI,REA,TKC,WHF,WP
Houghton 179,25 148,50 115,63 89,40 ANV,AS,BR,CR,FAS,GPI,MR,SWI,WHFMelrose Arch 228,60 206,00 163,29 136,00 ANV,AS,BR,CBR,CR,GB,GPI,MR,SWI,
Hyde Park WHF
172,75 149,85 124,80 111,80 ANV,AS,BR,CR,FAS,GB,GPI,MR,SWI, TKC,WHF
Eastgate/Kramerville 147,67 125,25 101,75 70,00 AS,CR,GPI,WHF Ormonde 83,00 78,00 73,25Midrand 171,40 138,44 100,44
61,50 BR,FAS,GPI76,89 AS,AV,BR,CBR,CR,GB,GPI,REA,RK,
TKC,WHF,WP Hendrik Potgieter Corridor
139,00 118,83 103,33 95,00 AP,BR,GPI
Waterfall 210,88 183,00 - - AV,BR,CBR,CR,GB,GPI,RK,WP Waverley/Bramley 164,13 140,40 114,10 93,00 BR,CR,GB,GPI,MR Constantia Kloof 133,00 121,00 111,00 101,00 AP,AS,GPI Morningside 155,50 125,33 105,17 95,50 AP,CR,GB,GPI,MR,REA,SWIGreenstone - - - -East RandGermiston - - - -Benoni CBD - - - -Benoni dec. - - - -Boksburg CBD - - - -Boksburg North - - - -Benoni (Lakeside Mall area)
- - - -
Springs - - - -For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 34 Office rentals
Table 5.2 (continued) Market rental rates for office buildings
Quarter 2020:2 Rands per rentable m² per month, gross leases (excl VAT)
Grade A+
mean
Grade A
mean
Grade B
mean
Grade C
mean Panellist codes
Pretoria CBD - 100,00 75,00 61,67 AP,BR,CRI Lynnwood Glen - 145,00 102,50 76,67 AI,AP,CRI,WHF Lynnwood 180,00 153,75 107,25 81,67 ABA,AP,BR,CRI,HN,WHF Lynnwood Manor 190,00 180,00 137,50 - AP,CRI,WHF Lynnwood Ridge 180,00 151,33 137,50 - AP,CRI,WHF Faerie Glen 150,00 141,25 118,75 96,67 AP,BR,CRI,WHF Val de Grace - 137,50 97,50 90,00 AP,CRI,RIZ Menlyn 200,00 170,00 132,50 110,00 AP,BR,CRI,RIZ,WHF Menlo Park/ Hazelwood
180,00 150,00 127,50 100,00 AP,CRI,WHF
Brooklyn/Waterkloof 191,67 166,25 132,50 96,67 AP,BR,CRI,WHF Nieuw Muckleneuk 160,00 150,00 122,50 100,00 AP,CRI Hatfield/Hillcrest 186,67 140,00 111,25 81,67 AP,BR,CRI,WHF Centurion 170,00 140,00 121,25 96,25 AP,BR,CRI,MAS,WHF Highveld Technopark 160,00 138,33 105,00 97,50 AP,CRI,WHF Sunnyside - - - 60,00 AP,CRIArcadia 140,00 120,00 90,00 82,50 AP,CRI Route 21 Corp. Park 135,00 123,00 115,00 98,33 ABA,AP,CRI,MAS,WHF Silver Lakes/Die Wilgers
172,50 150,00 128,75 - AP,CRI,HN,WHF
Nelspruit CBD - - 104,17 71,25 KEL,MPV,ORI,PG,PM,PPSNelspruit dec. 180,83 160,00 125,00 85,00 KEL,MPV,ORI,PG,PM,PPS Polokwane 165,00 136,67 85,00 78,33 ES,MO,SF Bloemfontein CBD - 111,67 87,75 75,33 BR,ED,EK,EQV Westdene 135,60 116,67 90,50 77,00 BR,ED,EK,EQV,NR,PLA Durban CBD - 90,00 85,00 71,25 SWI,ZZ Durban Berea - 115,00 90,00 - SWI,ZZ Essex Terrace 145,00 135,00 120,00 110,00 SWI Westway 170,00 140,00 130,00 - SWI La Lucia Ridge 175,00 155,00 145,00 - SWI,ZZ Westville CBD 145,00 130,00 120,00 - SWI,ZZ Pinetown - 100,00 95,00 80,00 SWI Hillcrest-Kloof (Upper Highway)
- 136,25 102,50 80,00 SWI,ZZ
Umhlanga 195,00 167,50 142,50 - SWI,ZZ Ballito - 135,00 - - SWI,ZZ Point Waterfront - - - -Port Elizabeth CBD - 71,67 60,00 48,75 ARN,BR,SUM,TR Greenacres: Parks 122,50 117,50 93,75 71,67 ARN,BR,SUM,TR Greenacres: Single 91,67 81,67 78,33 66,67 ARN,BR,SUM,TR Walmer Park 1, 2 & 3 126,00 107,00 89,00 81,25 ARN,BR,MY,SUM,TR South End 90,00 85,00 80,00 56,67 ARN,BR,SUM,TR Humerail/Humewood 142,50 120,00 95,00 80,00 ARN,BR,SUM,TR Newton Park/Cape Road
107,50 94,50 79,00 66,00 ARN,BR,IPC,MY,SUM,TR
For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 35 Office rentals
Table 5.2 (continued) Market rental rates for office buildings
Quarter 2020:2 Rands per rentable m² per month, gross leases (excl VAT)
Grade A+
mean
Grade A
mean
Grade B
mean
Grade C
mean Panellist codes
East London CBD - 100,00 75,00 62,50 CHR,GW Southernwood - 100,00 75,00 55,00 CHR Berea - 130,00 97,50 75,00 CAP,CHR Chiselhurst - 110,00 85,00 60,00 CHR Beacon Bay 145,00 120,00 90,00 80,00 CHR Vincent - 118,00 100,00 75,00 CAP,CHR Cape Town CBD 188,21 149,44 113,57 93,00 AN,AS,BR,COM,CR,CSP,GB,HP,PF Sea Point 180,00 160,83 128,92 110,00 AN,AS,CA,COM,CR,PF,WHF Waterfront: Portswood Ridge
200,00 187,50 170,00 - AN,AS,COM,CR
Waterfront: Silo District
218,00 190,00 180,00 - AN,AS,COM,CR,CSP
Granger Bay 185,00 176,67 - - BR,COM,CR Gardens 190,00 170,00 115,00 97,50 AN,AS Salt River 140,70 116,67 87,39 77,40 AN,AP,AS,BR,COM,CR,DN,SCM,
WHF Woodstock 161,69 140,50 105,71 88,94 AN,AP,AS,BR,COM,CR,CSP,SCMObservatory/Black River Park
140,88 128,57 100,04 91,44 AP,AS,BR,COM,COR,CR,DN,GB, SCM
Mowbray - 135,00 106,25 - COM,COR,CR,DN,GB Kenilworth (Racecourse)
155,00 137,83 113,33 102,50 AP,AS,COM,COR,CR,GB
171,67 158,40 130,00 112,50 AP,AS,COM,COR,CR,DW,GB 231,67 191,67 146,67 - AS,COM,COR,CR,CSP,GB
- 117,50 100,00 - COM,CR,GB 165,00 143,00 114,00 105,00 AN,AS,COM,COR,CR,GB,HP 125,00 117,50 110,00 82,50 AN,AS,COM,CR 178,75 160,00 135,00 115,00 AP,AS,COR,CR,GB 217,14 174,00 141,67 117,50 AN,AP,AS,COM,COR,CR,GB
- - 90,00 - CR - - - -
150,00 121,25 99,00 90,00 AS,COM,COR,CR,DW,GAM,GB,HP - - - -
160,00 127,50 103,33 97,50 AP,CR,WHF162,50 141,67 122,50 - AN,AP,CR
- - 110,00 - CR
Rondebosch Newlands Wynberg WestlakeTokaiClaremont Lower* Claremont Upper Hout Bay Noordhoek (Sun Valley) Pinelands/Golf Park Athlone Milnerton PanoramaTable View/ Parklands Century City 190,50 164,44 141,43 121,00 AN,AP,AS,COM,CR,CSP,HP,LIB,
NE,PF,WHF Maitland 142,25 114,00 98,20 84,00 BR,COM,COR,CR,CSP,SCM,WHFGoodwood (N1 City) 140,00 128,00 108,00 92,50 AN,AP,AS,CR,PF Tygerberg Hills/ Plattekloof
158,33 148,33 - - AN,COM,CR,NE,WHF
Bellville CBD 122,50 112,80 94,29 88,13 AN,AP,AS,CA,COM,CR,CSP,DN, HOU,OMN,PF,WHF
Tyger Valley area 169,50 146,88 123,75 108,33 AN,AP,COM,CR,CSP,DN,NE,PF, WHF
Durbanville 132,50 126,67 108,00 95,00 AN,AS,CR,CSP,DN,HOU,NE,PF,WHF
Mitchells Plain - - - 80,00 CR *Claremont Lower: east of Main RoadFor definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 36 Office rentals
Table 5.2 (continued) Market rental rates for office buildings
Quarter 2020:2 Rands per rentable m² per month, gross leases (excl VAT)
Grade A+
mean
Grade A
mean
Grade B
mean
Grade C
mean Panellist codes
Airport 120,00 115,00 95,00 68,33 AS,CR,WHFKhayelitsha - - - -Kuils River 90,00 80,00 72,50 70,00 CR,OMN,PF Paarl 177,50 128,33 95,00 75,00 CR,PRU,SF Wellington - 110,00 60,00 45,00 SF Stellenbosch The Vineyard - - - -Technopark - - - -Other - - - -Helderberg Gordon’s Bay - - - -Somerset West CBD - - 100,00 - OMN Somerset Mall area - - - -Strand - - - -George Central 143,33 121,67 81,67 68,33 BVF,GRV,MUL George dec. 108,33 93,33 73,33 60,00 BVF,GRV,MUL Pietermaritzburg Core CBD
125,00 120,00 82,50 75,00 DOR,HN
Peripheral CBD 130,00 120,00 100,00 85,00 DOR,HN Pietermaritzburg 152,50 137,50 115,00 87,50 DOR,HN dec. Richards Bay - - - -Empangeni - 110,00 - - FO Windhoek 200,00 150,00 130,00 90,00 TE For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 37 Office rentals
Table 5.3 Standard deviation of market rental rates for office buildings
Quarter 2020:2 Rands per month
Grade A+ Grade A Grade B Grade C Johannesburg CBD - 3,74 4,54 5,10Braamfontein - 4,19 6,34 3,30Sandton CBD 12,30 18,51 18,32 6,92Dunkeld West 30,86 27,39 25,42 11,22Wierda Valley 8,06 14,76 14,45 6,29Randburg Ferndale 11,53 9,25 11,22 9,72Rivonia 9,13 11,02 12,61 3,89Rosebank 19,15 17,10 15,46 9,76Illovo 19,42 12,94 15,78 6,99Illovo Boulevard 23,08 11,66 14,07 4,95Chislehurston 4,15 4,50 6,63 5,59Parktown 13,58 15,64 9,22 8,99Richmond/Milpark - 1,25 - 1,25Bedfordview 9,44 6,22 9,22 2,60Bruma 2,50 5,83 8,09 6,12Woodmead 6,87 8,08 13,33 6,54Sunninghill 9,90 14,19 9,02 7,83Bryanston/Epsom Downs 21,91 16,48 11,57 4,12Fourways 9,32 6,27 10,01 6,35Houghton 24,52 24,99 17,40 7,45Melrose Arch 16,27 21,09 20,99 4,32Hyde Park 19,92 15,47 17,79 7,55Eastgate/Kramerville 3,30 10,85 6,65 3,54Ormonde - - 4,25 13,50Midrand 14,90 14,14 11,80 11,62Hendrik Potgieter Corridor 6,00 7,92 12,47 -Waterfall 12,36 3,52 - -Waverley/Bramley 15,73 3,26 9,01 -Constantia Kloof 2,16 2,94 1,41 1,41Morningside 33,08 17,90 19,62 7,39Greenstone - - - -East Rand Germiston - - - - Benoni CBD - - - - Benoni dec. - - - - Boksburg CBD - - - - Boksburg North - - - - Benoni (Lakeside Mall area) - - - - Springs - - - - Pretoria CBD - 14,72 10,80 2,36Lynnwood Glen - 5,00 10,90 16,50Lynnwood 10,00 13,86 15,09 6,24Lynnwood Manor - 16,33 27,50 -Lynnwood Ridge 10,00 14,73 27,50 -Faerie Glen 0,00 8,93 5,45 4,71Val de Grace - 7,50 2,50 -Menlyn 7,07 10,00 4,33 8,16Menlo Park/Hazelwood 5,00 8,16 2,50 0,00Brooklyn/Waterkloof 10,27 12,93 4,33 4,71For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 38 Office rentals
Table 5.3 (continued) Standard deviation of market rental rates for office buildings
Quarter 2020:2 Rands per month
Grade A+ Grade A Grade B Grade C Nieuw Muckleneuk 10,00 - 2,50 - Hatfield/Hillcrest 4,71 8,16 7,40 2,36Centurion 25,74 12,25 5,45 4,15Highveld Technopark 0,00 10,27 7,07 2,50Sunnyside - - - 0,00Arcadia - - 10,00 12,50Route 21 Corp. Park 4,08 6,00 10,00 2,36Silver Lakes/Die Wilgers 7,50 0,00 5,45 -Nelspruit CBD - - 1,86 2,80Nelspruit dec. 0,37 0,00 0,00 0,00Polokwane 25,00 17,00 5,00 16,50Bloemfontein CBD - 2,36 7,76 8,58Westdene 12,86 9,43 9,01 6,06Durban CBD - - 10,00 8,75Durban Berea - - - -Essex Terrace - - - -Westway - - - -La Lucia Ridge - - 0,00 -Westville CBD - 5,00 - -Pinetown - - - -Hillcrest-Kloof (Upper Highway) - 13,75 - -Umhlanga - - 7,50 -Ballito - 25,00 - -Point Waterfront - - - -Port Elizabeth CBD - 2,36 3,54 5,45Greenacres: Parks 7,50 4,33 9,60 4,71Greenacres: Single 13,12 6,24 8,50 6,24Walmer Park 1, 2 & 3 12,00 9,80 9,17 11,39South End 21,21 14,72 9,35 10,27Humerail/Humewood 8,29 0,00 11,18 14,72Newton Park/Cape Road 11,46 9,27 8,00 5,83East London CBD - - - 12,50Southernwood - - - -Berea - - 2,50 -Chiselhurst - - - -Beacon Bay - - - -Vincent - 12,00 - -Cape Town CBD 9,13 15,54 7,42 4,00Sea Point 6,12 6,07 11,69 8,16Waterfront: Portswood Ridge 28,58 20,77 10,00 -Waterfront: Silo District 17,20 - - -Granger Bay 5,00 12,47 - -Gardens 10,00 10,00 5,00 2,50Salt River 16,85 16,16 14,39 12,61Woodstock 3,51 8,62 10,15 12,31Observatory/Black River Park 28,81 24,89 16,05 7,11Mowbray - 27,93 23,82 -For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 39 Office rentals
Table 5.3 (continued) Standard deviation of market rental rates for office buildings
Quarter 2020:2 Rands per month
Grade A+ Grade A Grade B Grade C Kenilworth (Racecourse) 17,80 16,13 8,50 7,50Rondebosch 13,12 7,23 21,79 22,50Newlands 10,67 15,72 24,94 -Wynberg - 22,50 20,00 -Westlake - 20,15 7,35 7,07Tokai 15,00 7,50 0,00 7,50 Claremont Lower* 20,73 21,60 18,97 15,00Claremont Upper 28,77 17,15 2,36 7,50 Hout Bay - - - - Noordhoek (Sun Valley) - - - - Pinelands/Golf Park - 10,23 2,00 0,00Athlone - - - - Milnerton - 2,50 4,71 2,50Panorama 17,50 10,27 2,50 - Table View/Parklands - - - -Century City 19,16 8,64 6,39 6,63Maitland 37,75 21,17 14,03 26,50Goodwood (N1 City) 12,25 6,78 7,48 13,46 Tygerberg Hills/Plattekloof 2,36 2,36 - -Bellville CBD 4,33 8,57 12,94 9,98Tyger Valley area 11,87 9,33 8,63 6,24Durbanville 8,29 7,45 9,80 5,00Mitchells Plain - - - -Airport 0,00 5,00 5,00 16,50Khayelitsha - - - -Kuils River - - 2,50 -Paarl 22,50 11,79 14,72 12,25Wellington - - - -Stellenbosch The Vineyard - - - -Technopark - - - -Other - - - -Helderberg Gordon's Bay - - - -Somerset West CBD - - - -Somerset Mall area - - - -Strand - - - -George Central 4,71 2,36 2,36 4,71George dec. 8,50 2,36 2,36 0,00Pietermaritzburg Core CBD 15,00 - 2,50 0,00Peripheral CBD 15,00 10,00 0,00 5,00Pietermaritzburg dec. 12,50 7,50 5,00 2,50Richards Bay - - - -Empangeni - - - -Windhoek - - - -*Claremont Lower: east of Main RoadFor definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2020:2 40 Office rentals
Table 5.4 Typical rent-free period in months
Average periods on offer in quarter 2020:2 Mean SD
Johannesburg CBD 1,6 0,5Braamfontein 1,3 0,5Sandton CBD 2,1 1,4Dunkeld West 1,7 0,5Wierda Valley 1,6 0,5Randburg Ferndale 1,7 1,1Rivonia 1,7 0,5Rosebank 1,8 0,6Illovo 1,7 0,5Illovo Boulevard 1,7 0,5Chislehurston 1,5 0,5Parktown 1,9 0,7Richmond/Milpark 1,3 0,5Bedfordview 1,6 0,5Bruma 1,8 0,4Woodmead 1,7 0,6Sunninghill 1,9 0,9Bryanston/Epsom Downs 1,7 0,7Fourways 1,9 0,6Houghton 1,5 0,5Melrose Arch 1,7 0,5Hyde Park 1,7 0,5Eastgate/Kramerville 1,5 0,5Ormonde 1,3 0,5Midrand 2,0 0,8Hendrik Potgieter Corridor 1,5 0,5Waterfall 1,9 0,6Waverley/Bramley 1,8 0,4Constantia Kloof 1,5 0,5Morningside 1,7 0,7Greenstone 1,5 0,5East Rand Germiston - -Benoni CBD - -Benoni dec. - -Boksburg CBD - -Boksburg North - -Benoni (Lakeside Mall area) - -Springs - -Pretoria CBD 1,3 0,5Lynnwood Glen 1,3 0,5Lynnwood 1,2 0,4Lynnwood Manor 1,3 0,5Lynnwood Ridge 1,0 0,0Faerie Glen 1,3 0,5Val de Grace 1,0 0,0Menlyn 1,4 0,4Menlo Park/Hazelwood 1,3 0,5Brooklyn/Waterkloof 1,3 0,5Nieuw Muckleneuk 1,3 0,5Hatfield/Hillcrest 1,3 0,5
Rode’s Report 2020:2 41 Office rentals
Table 5.4 (continued) Typical rent-free period in months
Average periods on offer in quarter 2020:2 Mean SD
Centurion 1,3 0,4Highveld Technopark 1,3 0,4Sunnyside 1,0 0,0Arcadia 1,0 0,0Route 21 Corp. Park 1,3 0,5Silver Lakes/Die Wilgers 1,0 0,0Nelspruit CBD 1,0 0,0Nelspruit dec. 1,0 0,0Polokwane 2,3 1,3Bloemfontein CBD 5,0 4,3Westdene 5,0 4,3Durban CBD 1,0 -Durban Berea 1,0 -Essex Terrace 2,0 -Westway 2,0 -La Lucia Ridge 2,0 -Westville CBD 3,0 -Pinetown 1,0 -Hillcrest-Kloof (Upper Highway) 2,0 -Umhlanga 2,0 -Ballito 2,0 -Point Waterfront - -Port Elizabeth CBD 1,1 0,2 Greenacres: Parks 1,0 0,0 Greenacres: Single 1,0 0,0 Walmer Park 1, 2 & 3 1,4 0,8 South End 1,0 0,0 Humerail/Humewood 1,0 0,0 Newton Park/Cape Road 1,8 1,0 East London CBD 0,5 0,5Southernwood - -Berea 1,0 0,0Chiselhurst - -Beacon Bay 1,0 -Vincent 1,0 0,0Cape Town CBD 1,8 0,7Sea Point 2,1 0,8Waterfront: Portswood Ridge 1,9 0,9Waterfront: Silo District 1,7 0,9Granger Bay 2,1 0,7Gardens 1,7 0,5Salt River 2,0 0,7Woodstock 1,8 0,8Observatory/Black River Park 1,6 0,8Mowbray 1,9 0,9Kenilworth (Racecourse) 1,9 0,8Rondebosch 1,9 0,8Newlands 1,9 0,8Wynberg 1,9 0,9
Rode’s Report 2020:2 42 Office rentals
Table 5.4 (continued) Typical rent-free period in months
Average periods on offer in quarter 2020:2 Mean SD
Westlake 1,8 0,8Tokai 2,1 0,7Claremont Lower* 1,4 0,8Claremont Upper 1,7 0,8Hout Bay 2,0 1,0Noordhoek (Sun Valley) 2,0 1,0Pinelands/Golf Park 1,7 0,8Athlone 2,0 1,0Milnerton 2,0 0,8Panorama 1,7 0,9Table View/Parklands 2,0 1,0Century City 1,9 0,8Maitland 2,2 0,9Goodwood (N1 City) 1,8 0,8Tygerberg Hills/Plattekloof 1,7 0,9Bellville CBD 1,6 0,8Tyger Valley area 2,1 0,8Durbanville 1,5 0,8Mitchells Plain 2,0 1,0Airport 2,0 0,8Khayelitsha 2,0 1,0Kuils River 1,5 0,9Paarl 1,7 0,9Wellington 2,0 1,0Stellenbosch The Vineyard - -Technopark - -Other - -Helderberg Gordon's Bay - -Somerset West CBD - -Somerset Mall area - -Strand - -George Central 1,2 0,2George dec. 1,0 0,0Pietermaritzburg Core CBD 1,0 0,0Peripheral CBD 1,0 0,0Pietermaritzburg dec. 1,0 0,0Richards Bay - -Empangeni - -Windhoek - -
*Claremont Lower: east of Main Road
Rode’s Report 2020:2 43 Office rentals
Table 5.5 Market parking rentals
Monthly parking Rands per bay per month (excl.
VAT) as in quarter 2020:2Covered reserved parking Shade
net Open-
air Gr A+ Gr A Gr B Gr C Johannesburg CBD - 782 735 571 430 363Braamfontein - 781 715 538 480 375Sandton CBD 1.145 908 772 623 570 489Dunkeld West 843 750 569 536 486 386Wierda Valley 835 708 625 542 452 390Randburg Ferndale 550 483 462 443 364 298Rivonia 656 625 528 447 448 355Rosebank 1.091 917 742 615 577 467Illovo 1.000 819 664 586 550 444Illovo Boulevard 988 793 675 610 575 433Chislehurston 850 750 630 617 530 403Parktown 811 680 582 517 489 394Richmond/Milpark 575 500 438 375 350 300Bedfordview 606 525 475 438 450 363Bruma 700 492 450 400 383 300Woodmead 736 665 550 460 439 361Sunninghill 638 567 472 439 381 321Bryanston/Epsom Downs
868 700 546 500 471 386
Fourways 775 616 500 475 446 359Houghton 950 753 597 548 569 458Melrose Arch 1.198 1.100 1.000 875 800 663 Hyde Park 808 706 606 567 510 407Eastgate/Kramerville - 633 533 433 333 233Ormonde - - 717 500 492 367Midrand 751 661 531 443 446 320Hendrik Potgieter Corridor
650 533 400 350 333 250
Waterfall 1.014 870 - - 550 517Waverley/Bramley 825 733 592 575 538 413Constantia Kloof 700 625 525 475 400 300Morningside 857 750 588 508 450 364Greenstone 750 650 550 550 450 350East Rand Germiston - - - - - -Benoni CBD - - - - - -Benoni dec. - - - - - -Boksburg CBD - - - - - -Boksburg North - - - - - -Benoni (Lakeside Mall area)
- - - - - -
Springs - - - - - -Pretoria CBD - 725 633 525 427 400Lynnwood Glen 800 750 650 650 525 450Lynnwood 850 750 617 517 443 381Lynnwood Manor 867 858 633 557 483 417Lynnwood Ridge 800 725 633 600 483 417Faerie Glen 767 700 625 533 435 317
Rode’s Report 2020:2 44 Office rentals
Table 5.5 (continued) Market parking rentals
Monthly parking Rands per bay per month (excl.
VAT) as in quarter 2020:2Covered reserved parking Shade
net Open-
air Gr A+ Gr A Gr B Gr C Val de Grace - 600 500 450 300 300 Menlyn 925 800 633 550 517 413 Menlo Park/Hazelwood 883 700 650 550 475 400 Brooklyn/Waterkloof 810 775 600 517 481 379 Nieuw Muckleneuk 850 700 625 500 458 400 Hatfield/Hillcrest 850 717 600 525 533 450 Centurion 867 725 600 500 488 379 Highveld Technopark 700 642 531 500 470 400 Sunnyside - - - 350 400 350 Arcadia - - 500 350 425 350 Route 21 Corp. Park 500 500 463 433 413 300 Silver Lakes/Die Wilgers 650 617 488 450 400 350 Nelspruit CBD - - 425 471 275 175 Nelspruit dec. 500 480 450 465 325 175 Polokwane 523 407 280 220 265 185 Bloemfontein CBD - 310 287 243 225 143 Westdene 388 327 300 275 261 158 Durban CBD - 900 750 550 - - Durban Berea - 500 500 500 400 400 Essex Terrace 700 600 600 500 500 500 Westway 725 700 600 600 - - La Lucia Ridge 800 675 650 - 650 525 Westville CBD 600 600 600 500 500 500 Pinetown 500 500 450 400 400 400 Hillcrest-Kloof (Upper Highway)
- 750 - - 250 150
Umhlanga 825 700 675 - 650 600Ballito - - - - - -Point Waterfront - - - - - -East London CBD - 650 450 263 400 250 Southernwood - 350 250 100 250 - Berea - 400 275 150 300 150 Chiselhurst - 350 250 150 200 - Beacon Bay - - - - - -Vincent - - - - - -Port Elizabeth CBD - 400 319 167 300 258 Greenacres: Parks 433 413 375 250 345 265 Greenacres: Single 525 500 275 250 283 238 Walmer Park 1, 2 & 3 467 400 331 200 298 218 South End 350 - 263 100 300 233 Humerail/Humewood 525 450 264 150 367 253 Newton Park/Cape Road 550 467 383 150 350 269 Cape Town CBD 1.630 1.488 1.350 1.167 900 717 Sea Point 1.400 1.367 1.075 1.000 675 580 Waterfront: Portswood Ridge
1.675 1.633 1.500 1.200 900 850
Waterfront: Silo District 1.738 1.713 1.500 1.200 900 850 Granger Bay - 1.550 - - - 1.000
Rode’s Report 2020:2 45 Office rentals
Table 5.5 (continued) Market parking rentals
Monthly parking Rands per bay per month (excl.
VAT) as in quarter 2020:2Covered reserved parking Shade
net Open-
air Gr A+ Gr A Gr B Gr C Gardens 1.600 1.400 1.200 1.000 700 675 Salt River 1.034 968 586 425 330 250 Woodstock - 1.185 975 425 - 683 Observatory/Black River Park
873 800 692 450 727 575
Mowbray - 1.300 - - 975 825Kenilworth (Racecourse) 950 833 650 400 600 428 Rondebosch 1.050 1.000 950 875 675 583 Newlands 1.583 1.490 1.425 1.000 850 818 Wynberg - 800 - - 675 500Westlake - 850 - - 750 583Tokai - 900 - - - 700Claremont Lower* 933 867 775 450 550 475 Claremont Upper 1.663 1.490 1.383 953 800 788 Hout Bay - - - - - -Noordhoek (Sun Valley) - - - - - -Pinelands/Golf Park - 967 - - 693 550 Athlone - - - - - -Milnerton - 900 500 400 300 180 Panorama - 850 850 - 650 550 Table View/Parklands - - - - - -Century City 1.271 1.131 945 813 763 709 Maitland 730 650 570 500 400 310 Goodwood (N1 City) 900 800 700 600 - - Tygerberg Hills/Plattekloof
950 940 633 420 633 550
Bellville CBD 793 765 576 550 440 370 Tyger Valley area 1.055 895 783 625 592 458 Durbanville 875 774 657 450 425 290 Mitchells Plain - - - - - -Airport 850 850 600 480 370 200 Khayelitsha - - - - - -Kuils River - - - - - -Paarl 750 550 400 250 500 350 Wellington - 500 400 200 500 150 Stellenbosch The Vineyard - - - - - -Technopark - - - - - -Other - - - - - -Helderberg Gordon's Bay - - - - - -Somerset West CBD - - - - - 600 Somerset Mall area - - - - - -Strand - - - - - -George Central 407 322 227 190 160 132 George dec. 360 323 217 187 150 135 Pietermaritzburg Core CBD
480 448 380 330 355 245
Peripheral CBD 410 375 323 300 330 255 Pietermaritzburg dec. 500 450 400 350 350 260
*Claremont Lower: east of Main Road
Rode’s Report 2020:2 46 Office rentals
Table 5.5 (continued) Market parking rentals
Monthly parking Rands per bay per month (excl.
VAT) as in quarter 2020:2Covered reserved parking Shade
net Open-
air Gr A+ Gr A Gr B Gr C Richards Bay - - - - - -Empangeni - - - - - -Windhoek 800 800 700 600 550 500
Rode’s Report 2020:2 47 Office rentals
Table 5.6 Office rental escalation rates on new leases (%) Average escalation rate on net rentals for quarter 2020:2
Mean Johannesburg CBD 7,7 Braamfontein 7,7 Sandton CBD 7,9 Dunkeld West 7,9 Wierda Valley 7,9 Randburg Ferndale 7,6 Rivonia 7,8 Rosebank 7,9 Illovo 7,9 Illovo Boulevard 7,7 Chislehurston 7,9 Parktown 7,8 Richmond/Milpark 7,8Bedfordview 7,9 Bruma 7,9 Woodmead 7,8 Sunninghill 7,9 Bryanston/Epsom Downs 8,0 Fourways 8,0 Houghton 7,8 Melrose Arch 8,0 Hyde Park 8,0 Eastgate/Kramerville 7,8Ormonde 7,5 Midrand 7,8 Hendrik Potgieter Corridor 8,0 Waterfall 7,9 Waverley/Bramley 7,8Constantia Kloof 7,9 Morningside 7,7 Greenstone 7,5 East Rand Germiston - Benoni CBD - Benoni dec. - Boksburg CBD - Boksburg North - Benoni (Lakeside Mall area) - Springs - Pretoria CBD 8,3 Lynnwood Glen 8,3 Lynnwood 8,3 Lynnwood Manor 8,3 Lynnwood Ridge 8,3 Faerie Glen 8,0 Val de Grace 8,3 Menlyn 8,5 Menlo Park/Hazelwood 8,3 Brooklyn/Waterkloof 8,3Nieuw Muckleneuk 8,3 Hatfield/Hillcrest 8,0Centurion 7,5 Highveld Technopark 8,0 Sunnyside 8,3 Arcadia 8,3
Rode’s Report 2020:2 48 Office rentals
Table 5.6 (continued) Office rental escalation rates on new leases (%) Average escalation rate on net rentals for quarter 2020:2
Mean Route 21 Corp. Park 7,5 Silver Lakes/Die Wilgers 7,5 Nelspruit CBD 7,5 Nelspruit dec. 8,0 Polokwane 6,3 Bloemfontein CBD 7,6 Westdene 7,4 Durban CBD 8,5 Durban Berea 8,5 Essex Terrace 8,5 Westway 8,5 La Lucia Ridge 8,5 Westville CBD 8,5 Pinetown 8,5 Hillcrest-Kloof (Upper Highway) 8,5 Umhlanga 8,5 Ballito - Point Waterfront - Port Elizabeth CBD 7,7 Greenacres: Parks 7,5 Greenacres: Single 7,7 Walmer Park 1, 2 & 3 7,8 South End 7,7 Humerail/Humewood 7,8 Newton Park/Cape Road 7,7 East London CBD 8,5 Southernwood 7,0 Berea 7,5 Chiselhurst 7,0 Beacon Bay 7,0 Vincent 7,5 Cape Town CBD 8,0 Sea Point 8,1 Waterfront: Portswood Ridge 8,4 Waterfront: Silo District 8,4 Granger Bay 8,1 Gardens 8,0 Salt River 8,1 Woodstock 8,0 Observatory/Black River Park 7,6 Mowbray 7,6 Kenilworth (Racecourse) 7,9 Rondebosch 7,9 Newlands 8,1 Wynberg 7,6 Westlake 7,9 Tokai 8,1 Claremont Lower* 7,6 Claremont Upper 7,9 Hout Bay 8,0 Noordhoek (Sun Valley) 8,0 *Claremont Lower: east of Main Road
Rode’s Report 2020:2 49 Office rentals
Table 5.6 (continued) Office rental escalation rates on new leases (%) Average escalation rate on net rentals for quarter 2020:2
Mean Pinelands/Golf Park 7,7 Athlone 8,0 Milnerton 8,0 Panorama 8,0 Table View/Parklands 8,0 Century City 8,2 Maitland 7,9 Goodwood (N1 City) 8,0 Tygerberg Hills/Plattekloof 8,1 Bellville CBD 8,0 Tyger Valley area 8,0 Durbanville 7,9 Mitchells Plain 8,0 Airport 7,8 Khayelitsha 8,0 Kuils River 8,0 Paarl 7,1 Wellington 7,7 Stellenbosch The Vineyard - Technopark - Other - Helderberg Gordon's Bay - Somerset West CBD 8,0 Somerset Mall area - Strand - George Central 7,7 George dec. 7,7 Pietermaritzburg Core CBD 7,5 Peripheral CBD 7,5 Pietermaritzburg dec. 7,8 Richards Bay - Empangeni 5,0 Windhoek 8,0
Rode’s Report 2020:2 50 Office rentals
Table 5.7 Escalation rates on operating costs (%)
for quarter 2020:2 Mean
Johannesburg CBD 8,7 Braamfontein 8,7 Sandton CBD 8,7 Dunkeld West 8,4 Wierda Valley 8,3 Randburg Ferndale 7,9 Rivonia 8,0 Rosebank 8,3 Illovo 8,3 Illovo Boulevard 8,3 Chislehurston 8,5 Parktown 8,2 Richmond/Milpark 8,3Bedfordview 8,5 Bruma 8,4 Woodmead 8,0 Sunninghill 7,9 Bryanston/Epsom Downs 8,5 Fourways 8,3 Houghton 8,0 Melrose Arch 8,3 Hyde Park 8,4 Eastgate/Kramerville 8,5Ormonde 8,0 Midrand 8,2 Hendrik Potgieter Corridor 8,3 Waterfall 8,2 Waverley/Bramley 8,0Constantia Kloof 8,7 Morningside 7,7 Greenstone 8,0 East Rand Germiston - Benoni CBD - Benoni dec. - Boksburg CBD - Boksburg North - Benoni (Lakeside Mall area) - Springs - Pretoria CBD 8,3 Lynnwood Glen 8,3 Lynnwood 8,7 Lynnwood Manor 8,3 Lynnwood Ridge 8,3 Faerie Glen 8,7 Val de Grace 8,3 Menlyn 8,8 Menlo Park/Hazelwood 8,7 Brooklyn/Waterkloof 8,7Nieuw Muckleneuk 8,3 Hatfield/Hillcrest 8,7Centurion 8,0 Highveld Technopark 8,0 Sunnyside 8,3
Rode’s Report 2020:2 51 Office rentals
Table 5.7 (continued) Escalation rates on operating costs (%)
for quarter 2020:2 Mean
Arcadia 8,3 Route 21 Corp. Park 7,5 Silver Lakes/Die Wilgers 8,3 Nelspruit CBD 8,0 Nelspruit dec. 8,0 Polokwane 6,3 Bloemfontein CBD 8,0 Westdene 8,3 Durban CBD 8,5 Durban Berea 8,5 Essex Terrace 8,5 Westway 8,5 La Lucia Ridge 8,5 Westville CBD 8,5 Pinetown 8,5 Hillcrest-Kloof (Upper Highway) 8,5 Umhlanga 8,5 Ballito - Point Waterfront - Port Elizabeth CBD 9,0 Greenacres: Parks 10,0 Greenacres: Single 8,8 Walmer Park 1, 2 & 3 9,2 South End 9,0 Humerail/Humewood 9,0 Newton Park/Cape Road 9,3 East London CBD 6,0 Southernwood 7,0 Berea 7,5 Chiselhurst 7,0 Beacon Bay 7,0 Vincent 7,5 Cape Town CBD 8,6 Sea Point 8,5 Waterfront: Portswood Ridge 8,7 Waterfront: Silo District 8,8 Granger Bay 8,3 Gardens 9,0 Salt River 8,8 Woodstock 8,2 Observatory/Black River Park 8,0 Mowbray 7,7 Kenilworth (Racecourse) 8,2 Rondebosch 8,2 Newlands 8,4 Wynberg 7,7 Westlake 8,2 Tokai 9,0 Claremont Lower* 7,8 Claremont Upper 8,2 Hout Bay 8,0 *Claremont Lower: east of Main Road
Rode’s Report 2020:2 52 Office rentals
Table 5.7 (continued) Escalation rates on operating costs (%)
for quarter 2020:2 Mean
Noordhoek (Sun Valley) 8,0 Pinelands/Golf Park 8,1 Athlone 8,0 Milnerton 8,0 Panorama 8,0 Table View/Parklands 8,0 Century City 8,4 Maitland 8,0 Goodwood (N1 City) 8,4 Tygerberg Hills/Plattekloof 8,2 Bellville CBD 8,3 Tyger Valley area 8,2 Durbanville 8,3 Mitchells Plain 8,0 Airport 8,5 Khayelitsha 8,0 Kuils River 8,0 Paarl 7,8 Wellington 8,0 Stellenbosch The Vineyard - Technopark - Other - Helderberg Gordon's Bay - Somerset West CBD 8,0 Somerset Mall area - Strand - George Central 8,5 George dec. 7,8 Pietermaritzburg Core CBD 7,5 Peripheral CBD 7,5 Pietermaritzburg dec. 8,0 Richards Bay - Empangeni - Windhoek 10,0
Our heartfelt thanks to the companies that contributed to the office-market survey. By clicking on their logos, you will learn more about these panellists.
Trust & Estate Co.
Rode’s Report 2020:2 55 Office demand and vacancies
Chapter 6: Office demand and vacancies
Vacancy rates heading higher Kobus Lamprecht
National office market vacancies continued to rise in the first quarter of 2020 amid recessionary conditions. We expect vacancy rates to increase sharply over the rest of 2020 and into 2021 as more companies close. Companies might also reduce their required space as more employees work from home on a permanent basis, leading to a prolonged oversupplied market. However, this impact will be offset somewhat by more space per employee required to adhere to social distancing guidelines.
A positive for landlords is that office space under construction has tapered off significantly to only 262 000 m² in the first quarter (see Table 6.3), while office building plans passed are continuing to decline sharply (Chapter 11). Projects under construction were halted in the first hard lockdown that started on 27 March and it is not clear how many of these projects have resumed in the second quarter. However, projects are expected to face lengthy delays, while some will be deemed unfeasible and be stopped permanently. The supply of space is only one side of the coin – the market also needs a strong demandrecovery to see sustainable growth in real rentals, which seems quite a few years away.
Vacancy rates on a national level
0
4
8
12
16
20
24
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
National CBD vacancy rateNational decentralized vacancy rate20-yr avg decentralized vacancy rate
National office vacancy rateCombined grades A & B
Vac
ancy
rat
e(%
)
Source of data: SAPOA; Rode calculations
Nationally, decentralized vacancy rates for grades A and B offices combined averaged 11,1% in the first quarter of 2020, up from
10,6% in the fourth quarter of 2019. This was the worst vacancy rate since early 2004. Vacancy rates are moving further away from their 8% long-term average, as shown in the accompanying chart.
CBD vacancy rates also started to weaken again at the start of 2020, reaching almost 12% on average in the first quarter, largely due to Cape Town’s grade-A+ vacancy rate jumping to 29% as new unlet supply entered the market. Could the timing have been worse?
Please note that the first-quarter SAPOA data do not incorporate the dire impact on the office market stemming from the virus. Below we highlight the trends in the major cities.
Vacancy rates in the major cities
The Johannesburg decentralized vacancy rate for grades A and B office space combined in the first quarter of 2020 increased to 13% from 12,2% in the fourth quarter of 2019, continuing its weakening trend of the past four years.
0
5
10
15
20
25
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Sandton & environsRosebankParktownRivonia
Vac
ancy
(%
)
Decentralized Johannesburg office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; Sapoa
Sandton’s average vacancy rate increased to 16,3% in the first quarter from 15,9% at the end of 2019. Sandton has a huge oversupply of office stock due to many developments hitting the market over the past few years. These new developments have led to higher grade-B (generally 10 to
Rode’s Report 2020:2 56 Office demand and vacancies
20 years old) vacancy rates of 32% as tenants preferred the newer, shiny space. Positively, developments under construction totalled only about 40 000 m² in the first quarter of 2020 ̶ a far cry from the peak of 371 000 at the end of 2015. For more details on national office developments and pre-let rates, see Table 6.3 at the end of this chapter.
Rosebank’s vacancy rate stayed stable at about 18,5% in the first quarter, after rising significantly at the end of last year as a large amount of new unlet space came online. This pushed the grade-A+ vacancy rate up to 26%, a sharp contrast to Sandton, which still had a 9% grade-A+ vacancy rate. New office space under construction in Rosebank totalled 73 000 m² in the first quarter ̶ 28% of national developments and the most in the country. The pre-let rate of this space at the time was a high 86%.
The vacancy rate of the Waterfall node decreased slightly to 4%, the lowest in Johannesburg. New office space under construction here totalled 58 000 m² in the first quarter, with almost all pre-let.
Note the surge in vacancies in Illovo and Midrand.
0
5
10
15
20
25
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Bryanston/Epson DownsIllovoMidrandRandburg
Vac
ancy
(%
)
Decentralized Johannesburg office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; Sapoa
The Pretoria decentralized vacancy rate of grades A and B offices combined remained about 10% in the first quarter of 2020. Highveld Technopark, the largest decentralized node in the city representing about a fifth of office stock, saw its vacancy rate improve to 9,3% from 10,7% in the fourth quarter. Centurion CBD, the second-biggest node, saw a sharp vacancy rate increase to 13% from 11,6%, while vacancy rates moved in the opposite direction in the Other Eastern suburbs/Route 21 node, as shown in the chart. Vacancy rates were the lowest in the small office nodes of Arcadia (3,7%) and Silver Lakes/The Willows (5%).
The vacancy factor in Hatfield – once the top node in the city – shows an ominous upward trend and its vacancy rate remains the highest in the city at about 19%.
0
4
8
12
16
20
24
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Brooklyn/Niew Muckleneuk/Groenkloof/WaterkloofPretoria Other Eastern Suburbs/Route 21Centurion CBDHatfield/Hillcrest
Vac
ancy
(%
)
Decentralized Pretoria office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; Sapoa
Vacancy rates in Durban decentralized averaged 8,1% in the first quarter of 2020 a decrease from 8,8% in the fourth quarter as the vacancy rate of Umhlanga/La Lucia improved to about 8%. The vacancy rate of Westville, the second-largest decentralized office node in Durban after Umhlanga/La Lucia, also decreased to 6,5% from 7,4%. The vacancy rate of the small node of Hillcrest/Gillitts jumped to 9,3% after still averaging about 4% in the second half of last year. A positive aspect about Durban is that the 13 000 m² space under construction (in Umhlanga/La Lucia and Westville) was already about 90% pre-let in the first quarter.
0
4
8
12
16
20
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
WestvilleBereaUmhlanga/La Lucia
Vac
ancy
(%
)
Decentralized Durban office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; SAPOA
The vacancy rate of Cape Town decentralized increased to 5,3% from 4,9% at the end of 2019, still the lowest of the major cities. This was largely due to Century City’s vacancy rate rising to 10,6% from 8,3% as more grade-B space became vacant. Claremont’s vacancy rate improved to 6,6% after a torrid few quarters during which supply increased.
Rode’s Report 2020:2 57 Office demand and vacancies
The vacancy rates of the V&A Waterfront, Newlands/Rondebosch and Pinelands/Black River Office Park averaged a very low 2%. What is worrying is that developments under construction in Cape Town (30 000 m²; 12% of SA developments) had a pre-let rate of only 27% in the first quarter of 2020, even before Covid-19 became a crisis.
0
5
10
15
20
25
30
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Rondebosch/NewlandsClaremontCentury CityV&A Waterfront
Vac
ancy
(%
)
Decentralized Cape Town office vacanciesGrade A+, A and B combined
Source of data: Rode's Time Series; SAPOA
0
10
20
30
40
50
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
GreenacresNewton ParkWalmer/Fairview
Vac
ancy
(%
)
Decentralized Port Elizabeth office vacanciesGrades A and B combined
Source of data: Rode's Time Series; Sapoa
In the first quarter of 2020, vacancy rates in Port Elizabeth decentralized were unchanged at 9,7%. All nodes in the Friendly City had vacancy rates between 9% and 12%, except Walmer/Fairview (6,2%).
Rode’s Report 2020:2 58 Office demand and vacancies
Table 6.1 SAPOA office vacancy factors (%)
Grades A+, A & B March 2019
June 2019
September 2019
December 2019
March 2020
Johannesburg Bedfordview Grade A+ - - - - -Grade A 5,3 4,2 5,5 5,8 5,9Grade B 9,2 16,8 18,7 19,4 25,3Total 6,3 7,3 8,8 9,2 10,5 BraamfonteinGrade A+ - - - - -Grade A 5,2 6,9 6,8 6,0 5,9Grade B 30,4 33,4 26,5 27,5 27,5Total 15,2 17,4 14,2 14,1 14,1 BrumaGrade A+ - - - - -Grade A 7,5 8,4 8,3 8,7 9,1Grade B 21,5 22,9 16,7 17,5 19,9Total 10,6 11,7 10,2 10,6 11,5 Bryanston/Epsom DownsGrade A+ 0,0 - 5,2 0,0 0,0Grade A 5,8 6,4 7,7 9,0 9,3Grade B 9,4 10,6 11,0 10,7 9,5Total 7,2 8,2 9,1 9,5 9,1 CBD JohannesburgGrade A+ - - - - -Grade A 2,9 3,1 3,1 3,1 2,9Grade B 16,7 16,3 15,0 15,9 16,7Total 11,5 11,1 10,5 10,9 11,1 Constantia KloofGrade A+ - - - - -Grade A 6,1 5,2 4,8 4,6 3,5Grade B 10,0 10,0 7,3 7,3 7,4Total 6,3 5,5 5,0 4,8 3,8 Cresta/Blackheath/RandparkGrade A+ 0,0 0,0 0,0 2,6 2,6Grade A 5,5 10,5 7,8 9,8 9,8Grade B 13,8 7,1 8,4 8,4 8,4Total 5,8 5,8 5,5 6,8 6,8 FourwaysGrade A+ 0,0 0,0 0,0 0,0 0,0Grade A 10,0 10,4 14,7 10,5 17,7Grade B 11,3 10,9 11,0 11,4 12,2Total 9,5 9,4 11,2 9,7 13,0 GreenstoneGrade A+ - - - - -Grade A 18,2 16,2 9,7 10,7 13,8Grade B - - - - -Total 18,2 16,2 9,7 10,7 13,8 Houghton/Killarney Grade A+ 100,0 100,0 100,0 - -Grade A 9,3 9,1 9,4 9,2 9,1Grade B 0,0 0,0 0,0 0,0 0,0Total 11,6 11,4 11,7 9,1 8,9 Source of data: SAPOA
Rode’s Report 2020:2 59 Office demand and vacancies
Table 6.1 (continued) SAPOA office vacancy factors (%)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
Hyde Park/Dunkeld Grade A+ - - - - - Grade A 1,9 9,6 8,8 8,7 9,4 Grade B 7,4 10,7 11,0 7,2 9,0 Total 5,5 10,3 10,2 7,7 9,2 Illovo Grade A+ 1,2 3,1 17,7 17,7 15,3 Grade A 14,4 16,3 15,2 14,6 15,0 Grade B 12,7 9,2 14,0 14,0 37,1 Total 12,9 13,9 15,3 14,9 18,4 Melrose/Waverley Grade A+ 10,2 10,2 9,9 9,9 0,0 Grade A 6,1 4,9 4,8 9,6 11,2 Grade B 2,2 2,6 2,1 2,1 0,0 Total 6,0 5,0 4,8 9,1 9,8 Midrand Grade A+ 0,0 - - - - Grade A 14,9 14,5 15,3 15,0 15,5 Grade B 14,9 17,4 17,7 19,4 19,3 Total 14,7 15,4 16,1 16,4 16,7 Milpark Grade A+ - - - - - Grade A 1,4 3,0 3,0 3,0 0,7 Grade B 7,8 7,8 5,4 6,2 6,0 Total 6,9 7,4 5,2 5,9 5,6 Morningside Grade A+ - - - - - Grade A 11,3 13,7 13,1 16,4 16,1 Grade B 7,0 7,0 7,0 7,0 7,0 Total 9,9 11,5 11,1 13,3 13,1 Newtown Grade A+ - - - - - Grade A 1,1 0,0 0,0 0,0 0,0 Grade B 14,2 14,2 14,2 14,2 14,2 Total 6,5 5,9 5,9 5,9 5,9 Parktown Grade A+ - - - - - Grade A 4,8 4,2 2,2 2,0 5,5 Grade B 23,5 25,9 24,7 25,6 29,1 Total 15,5 16,0 14,5 14,8 18,3 Randburg Grade A+ 0,0 0,0 0,0 0,0 0,0 Grade A 9,8 5,1 6,2 4,3 4,4 Grade B 12,6 13,5 10,7 8,3 8,3 Total 10,8 10,0 9,0 6,8 6,9 RivoniaGrade A+ - - - - - Grade A 4,2 4,2 11,0 15,6 8,4 Grade B 14,1 13,2 7,5 9,6 14,2 Total 13,7 12,8 7,7 9,8 14,0 RosebankGrade A+ 1,2 0,5 0,9 26,7 26,0 Grade A 8,4 9,4 9,2 10,4 13,0 Grade B 11,1 11,9 13,7 15,4 13,9 Total 7,1 7,1 7,7 18,3 18,5 Source of data: SAPOA
Rode’s Report 2020:2 60 Office demand and vacancies
Table 6.1 (continued) SAPOA office vacancy factors (%)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
SandtonGrade A+ 10,1 10,1 10,0 9,0 9,3Grade A 20,4 21,0 19,4 17,6 18,5Grade B 32,9 33,0 32,6 32,2 32,0Total 17,6 17,8 17,1 15,9 16,3 SunninghillGrade A+ - - - - -Grade A 26,0 8,1 0,0 0,0 0,0Grade B 3,2 16,8 15,3 17,7 19,0Total 13,8 16,3 15,0 17,4 18,7 WaterfallGrade A+ 5,2 4,8 4,8 3,2 1,5Grade A 0,0 3,5 4,5 5,5 7,6Grade B - - - - -Total 3,4 4,2 4,7 4,2 4,0 WoodmeadGrade A+ - - - - -Grade A 6,4 16,0 6,2 11,3 12,9Grade B 5,1 11,3 11,4 6,1 6,0Total 5,6 13,1 9,3 8,1 8,7
Cape Town BellvilleGrade A+ 12,9 12,9 4,6 4,6 4,6Grade A 2,6 1,1 1,5 1,3 1,8Grade B 10,6 10,2 10,6 11,7 11,8Total 5,1 4,0 4.2 4,4 4,8 CBD Cape TownGrade A+ 6,7 3,2 8,1 7,7 28,9Grade A 11,3 10,7 9,9 9,8 8,0Grade B 11,3 12,0 10,9 10,7 11,4Total 11,1 11,0 10,4 10,2 11,3 Central (Pinelands & Black River Office Park) Grade A+ - - - - -Grade A 1,8 1,7 2,1 1,6 1,5Grade B 8,1 4,5 5,6 4,5 5,1Total 2,5 2,0 2,5 1,9 1,9 Century CityGrade A+ 2,2 0,0 0,9 0,9 1,9Grade A 10,8 13,5 12,6 10,4 10,8Grade B 11,0 8,8 6,0 7,0 21,9Total 9,3 10,5 9,7 8,3 10,6 Claremont Grade A+ 0,0 19,8 19,8 19,8 7,4Grade A 1,5 1,5 8,8 8,9 8,4Grade B 5,0 4,0 7,2 4,2 3,6Total 2,8 3,8 8,9 7,9 6,6 Rondebosch/NewlandsGrade A+ - - - - -Grade A 1,2 1,7 1,9 2,7 3,2Grade B 1,8 2,2 1,6 0,0 0,0Total 1,4 1,8 1,8 1,9 2,3 Source of data: SAPOA
Rode’s Report 2020:2 61 Office demand and vacancies
Table 6.1 (continued) SAPOA office vacancy factors (%)
Grades A+, A & B March 2019
June 2019
September 2019
December 2019
March 2020
WaterfrontGrade A+ 0,6 0,6 2,8 2,8 2,2Grade A 5,3 1,4 3,6 4,2 2,6Grade B 0,0 0,0 23,6 23,6 0,0Total 3,2 1,0 4,5 4,9 2,3
Durban BallitoGrade A+ 1,3 2,0 2,0 7,9 7,9Grade A 6,9 16,7 12,6 9,2 9,1Grade B 6,4 2,0 3,5 5,1 4,9Total 5,5 9,7 7,5 7,7 7,6 BereaGrade A+ - - - - -Grade A 4,9 4,9 4,6 3,6 5,0Grade B 14,6 14,6 17,6 19,1 17,4Total 8,5 8,5 10,6 9,5 10,8 CBD DurbanGrade A+ - - - - -Grade A 24,0 20,5 24,0 19,6 22,8Grade B 21,3 22,2 20,8 21,8 21,5Total 22,6 21,4 22,3 20,8 22,1 Hillcrest/GillittsGrade A+ - - - - -Grade A 8,5 3,7 3,7 3,7 9,7Grade B 10,1 7,2 7,2 7,2 7,2Total 8,7 4,3 4,3 4,2 9,3 Umhlanga/La LuciaGrade A+ 24,2 25,0 22,8 24,1 21,8Grade A 5,6 6,7 5,1 6,7 5,2Grade B 7,9 7,5 7,5 7,5 7,5Total 8,6 9,6 8,2 9,7 8,1 WestvilleGrade A+ - - - - -Grade A 7,1 7,6 7,6 3,8 3,4Grade B 5,3 5,7 5,4 9,2 8,1Total 5,9 6,3 6,2 7,4 6,5
Pretoria ArcadiaGrade A+ - - - - -Grade A 7,6 7,6 7,6 3,8 3,6Grade B 4,5 5,4 2,9 2,9 3,8Total 6,1 6,5 5,3 3,3 3,7 Brooklyn/Groenkloof/ Nieuw Muckleneuk/Waterkloof Grade A+ - - - 16,4 -Grade A 8,2 10,7 - 1,4 11,1Grade B 9,6 8,7 - 9,3 7,6Total 9,0 9,7 - 8,2 9,2 CBD PretoriaGrade A+ - - - - -Grade A 0,0 0,0 0,0 0,0 0,4Grade B 4,3 4,2 4,2 4,2 4,4Total 3,2 3,1 3,1 3,1 3,3 Source of data: SAPOA
Rode’s Report 2020:2 62 Office demand and vacancies
Table 6.1 (continued) SAPOA office vacancy factors (%)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
Centurion CBD Grade A+ - - - 4,6 - Grade A 2,1 2,2 2,1 5,4 6,7 Grade B 18,7 21,5 18,4 18,2 19,8 Total 10,4 11,7 10,2 11,6 13,0 Hatfield/Hillcrest Grade A+ - - - 44,6 - Grade A 27,8 34,8 32,5 27,3 20,8 Grade B 11,2 11,9 10,2 15,7 17,6 Total 16,7 19,6 17,6 20,4 18,7 Highveld Technopark & Extensions Grade A+ - - - 10,0 - Grade A 15,7 10,2 10,0 10,1 8,2 Grade B 9,7 10,9 11,0 11,9 11,6 Total 13,7 10,5 10,3 10,7 9,3 Lynnwood/Menlo Park/ Persequor Park/Hazelwood Grade A+ 1,2 0,9 12,8 23,6 19,3 Grade A 9,2 7,1 13,3 5,8 12,1 Grade B 12,8 12,9 11,9 4,0 3,1 Total 9,4 8,6 12,6 9,0 9,3 Menlyn/Faerie Glen/ Ashlea Gardens Grade A+ 0,0 0,0 0,0 2,6 0,0 Grade A 9,1 9,2 9,2 12,6 13,3 Grade B 5,9 6,8 5,7 7,9 6,0 Total 7,9 8,2 7,8 7,9 10,7 Pretoria other Eastern Suburbs/ Route 21 Grade A+ - - - - - Grade A 3,6 4,2 4,6 4,5 3,7 Grade B 8,2 7,9 7,7 6,3 6,2 Total 6,9 6,8 6,8 5,8 5,5 Silver Lakes/The Willows Grade A+ - - - 25,3 - Grade A 5,2 5,6 5,4 6,2 3,9 Grade B 5,1 7,4 7,4 6,9 7,4 Total 5,1 6,1 6,0 7,2 5,0
Port Elizabeth Central/Park Drive Grade A+ - - - - - Grade A 100,0 - - 100,0 100,0 Grade B 0,0 0,0 0,0 0,0 0,0 Total 11,6 0,0 0,0 11,6 11,6 GreenacresGrade A+ 0,0 0,0 0,0 0,0 0,0 Grade A 3,8 3,8 20,0 20,0 20,0 Grade B 11,0 11,0 8,0 8,0 8,0 Total 8,5 8,5 10,4 10,4 10,4 Source of data: SAPOA
Rode’s Report 2020:2 63 Office demand and vacancies
Table 6.1 (continued) SAPOA office vacancy factors (%)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
HumerailGrade A+ - - - 0,0 0,0Grade A 4,2 4,6 9,8 9,8 9,8Grade B - - - - -Total 4,2 4,6 9,8 9,1 9,1 Newton ParkGrade A+ 16,8 16,8 9,7 7,3 7,3Grade A 0,0 0,0 32,0 7,1 7,1Grade B 34,2 34,2 28,7 28,7 28,7Total 19,0 19,0 13,9 10,8 10,8 Walmer/Fairview Grade A+ - - - - - Grade A 7,6 7,3 2,5 2,7 2,7 Grade B 31,9 8,2 18,6 18,6 18,6 Total 11,3 7,4 6,0 6,3 6,3
Major cities Johannesburg centralGrade A+ - - - - -Grade A 3,5 4,1 4,1 3,9 3,7Grade B 18,5 18,6 16,4 17,4 18,2Total 12,2 12,4 11,2 11,5 11,7 Johannesburg decentralizedGrade A+ 7,9 7,8 8,1 10,3 10,1 Grade A 11,1 10,9 10,4 10,6 11,5 Grade B 14,0 16,0 15,0 15,0 15,5 Total 11,6 12,3 11,7 12,2 13,0 Pretoria decentralizedGrade A+ 1,1 0,8 11,6 12,5 17,5Grade A 10,3 9,4 9,5 8,6 9,2Grade B 10,6 11,5 10,5 10,3 10,7Total 10,3 10,2 10,0 9,8 10,0 Durban decentralizedGrade A+ 22,1 22,5 20,8 22,6 20,5Grade A 5,9 6,8 5,5 5,9 5,3Grade B 7,4 7,3 8,4 10,2 9,8Total 7,8 8,4 7,8 8,8 8,1 Cape Town decentralizedGrade A+ 2,3 2,5 3,1 3,1 2,6Grade A 4,2 4,1 4,7 4,1 4,3Grade B 8,6 7,5 8,4 8,4 9,9Total 5,0 4,7 5,3 4,9 5,3 Port Elizabeth decentralizedGrade A+ 13,4 13,4 7,9 5,6 5,6Grade A 7,1 5,4 10,5 12,1 12,1Grade B 12,2 10,7 9,0 9,0 9,0Total 10,3 8,9 9,4 9,7 9,7 National decentralizedGrade A+ 8,0 8,0 8,5 10,7 10,2 Grade A 9,4 9,1 8,9 8,8 9,3 Grade B 12,3 13,7 12,9 13,0 13,5 Total 10,3 10,7 10,3 10,6 11,1 Source of data: SAPOA
Rode’s Report 2020:2 64 Office demand and vacancies
Table 6.1 (continued) SAPOA office vacancy factors (%)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
National CBDsGrade A+ 6,7 3,2 8,1 7,7 28,9Grade A 8,0 7,7 8,0 7,2 7,2Grade B 14,7 14,9 13,5 13,9 14,4Total 11,9 11,8 11,2 11,1 11,7 Source of data: SAPOA
Rode’s Report 2020:2 65 Office demand and vacancies
Table 6.2 SAPOA office stock (m²)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
Johannesburg BedfordviewGrade A+
Grade A 182 079 191 365 190 851 190 851 203 423 Grade B 63 249 63 799 63 799 63 799 63 799 Total 245 328 255 164 254 650 254 650 267 222 BraamfonteinGrade A+
Grade A 215 721 215 721 215 721 215 721 215 721 Grade B 141 838 141 838 130 338 130 338 130 338 Total 357 559 357 559 346 059 346 059 346 059 BrumaGrade A+
Grade A 66 769 65 809 65 809 65 809 65 809 Grade B 18 890 18 890 18 890 18 890 18 890 Total 85 659 84 699 84 699 84 699 84 699 Bryanston/Epsom DownsGrade A+ 15 630 15 630 15 630 15 630 Grade A 298 575 315 418 299 333 299 333 299 333 Grade B 247 308 247 308 247 308 247 308 247 308 Total 561 513 562 726 562 271 562 271 562 271 CBD JohannesburgGrade A+
Grade A 558 173 558 173 558 173 558 173 552 086 Grade B 937 466 875 466 932 466 875 466 809 466 Total 1 495 639 1 433 639 1 490 639 1 433 639 1 361 552 Constantia KloofGrade A+
Grade A 313 244 343 186 343 186 343 186 343 186 Grade B 21 743 21 743 21 743 21 743 21 743 Total 334 987 364 929 364 929 364 929 364 929 Cresta/Blackheath/RandparkGrade A+ 75 000 75 000 75 000 80 931 80 931 Grade A 92 913 66 819 66 819 66 819 66 819 Grade B 58 200 91 009 91 009 91 009 91 009 Total 226 113 232 828 232 828 238 759 238 759 FourwaysGrade A+ 25 000 25 000 25 000 25 000 25 000 Grade A 85 987 85 987 85 987 99 277 88 142 Grade B 107 905 107 905 107 905 102 849 108 465 Total 218 892 218 892 218 892 227 126 221 607 GreenstoneGrade A+
Grade A 54 275 54 275 54 275 54 275 54 014 Grade B Total 54 275 54 275 54 275 54 275 54 014 Houghton/KillarneyGrade A+ 3 568 3 568 3 568 Grade A 124 822 124 822 124 822 124 822 125 192 Grade B 2 200 2 200 2 200 2 200 2 200 Total 130 590 130 590 130 590 127 022 127 392 Source of data: SAPOA
Rode’s Report 2020:2 66 Office demand and vacancies
Table 6.2 (continued) SAPOA office stock (m²)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
Hyde Park/Dunkeld Grade A+
Grade A 40 867 40 776 40 776 40 776 40 776 Grade B 75 233 75 278 75 278 76 219 76 219 Total 116 100 116 054 116 054 116 995 116 995 Illovo Grade A+ 22 600 22 600 28 600 28 600 28 600 Grade A 178 359 180 214 180 214 180 214 180 214 Grade B 27 340 37 203 37 203 37 203 37 203 Total 228 299 240 017 246 017 246 017 246 017 Melrose/Waverley Grade A+ 8 562 8 562 8 562 8 562 8 562 Grade A 160 469 162 736 162 736 163 007 159 007 Grade B 13 353 13 353 13 353 13 353 13 353 Total 182 384 184 651 184 651 184 922 180 922 Midrand Grade A+ 8 000Grade A 426 861 435 960 439 760 439 760 439 754 Grade B 201 850 201 713 201 713 202 912 210 305 Total 636 711 637 673 641 473 642 672 650 059 Milpark Grade A+
Grade A 27 900 13 400 13 400 13 400 13 400 Grade B 169 326 169 326 162 642 162 642 162 642 Total 197 226 182 726 176 042 176 042 176 042 Morningside Grade A+
Grade A 68 835 68 835 68 835 68 835 68 835 Grade B 33 722 33 722 33 722 33 722 33 722 Total 102 557 102 557 102 557 102 557 102 557 Newtown Grade A+
Grade A 109 683 109 683 109 683 109 683 109 683 Grade B 77 700 77 700 77 700 77 700 77 700 Total 187 383 187 383 187 383 187 383 187 383 Parktown Grade A+
Grade A 169 256 192 076 192 076 192 076 192 076 Grade B 226 817 226 817 228 805 228 805 228 989 Total 396 073 418 893 420 881 420 881 421 065 Randburg Grade A+ 32 000 32 000 32 000 32 000 32 000 Grade A 96 229 111 229 77 874 74 874 74 874 Grade B 256 728 245 846 290 083 271 387 272 675 Total 384 957 389 075 399 957 378 261 379 549 Rivonia Grade A+
Grade A 10 873 10 873 10 873 10 873 10 873 Grade B 266 009 269 479 269 479 269 479 269 422 Total 276 882 280 352 280 352 280 352 280 295 Rosebank Grade A+ 116 159 139 798 139 798 188 127 188 127 Grade A 170 959 154 609 154 609 160 609 160 609 Grade B 114 160 115 172 114 812 117 162 117 162 Total 401 278 409 579 409 219 465 898 465 898 Source of data: SAPOA
Rode’s Report 2020:2 67 Office demand and vacancies
Table 6.2 (continued) SAPOA office stock (m²)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
Sandton Grade A+ 934 677 934 677 962 507 967 604 966 378 Grade A 647 358 648 812 673 295 670 105 670 105 Grade B 334 650 334 604 336 836 336 868 336 868 Total 1 916 685 1 918 092 1 972 638 1 974 577 1 973 351 Sunninghill Grade A+
Grade A 168 617 24 557 6 370 6 370 6 370 Grade B 195 754 339 814 358 001 357 123 357 325 Total 364 371 364 371 364 371 363 493 363 695 Waterfall Grade A+ 98 897 97 751 102 251 102 251 102 251 Grade A 52 442 66 826 66 826 66 826 71 366 Grade B Total 151 339 164 577 169 077 169 077 173 617 Woodmead Grade A+
Grade A 171 356 169 840 169 840 169 840 169 840 Grade B 253 226 259 742 259 742 259 742 259 742 Total 424 582 429 582 429 582 429 582 429 582
Cape Town BellvilleGrade A+ 10 600 10 600 10 600 10 600 10 600 Grade A 375 497 375 497 384 637 384 637 384 367 Grade B 161 641 161 641 161 641 161 616 161 616 Total 547 738 547 738 556 878 556 853 556 583 CBD Cape Town Grade A+ 52 000 52 000 52 000 52 000 66 080 Grade A 382 383 382 383 360 923 367 623 367 623 Grade B 519 786 506 386 506 386 506 386 506 386 Total 954 169 940 769 919 309 926 009 940 089 Central (Pinelands & Black River Office Park) Grade A+ Grade A 272 975 272 975 272 975 272 975 272 975 Grade B 36 741 36 741 36 741 36 741 36 741 Total 309 716 309 716 309 716 309 716 309 716 Century CityGrade A+ 62 480 62 480 62 480 62 480 62 480 Grade A 247 653 247 653 248 299 248 299 248 299 Grade B 45 215 45 215 45 215 45 215 45 215 Total 355 348 355 348 355 994 355 994 355 994 Claremont Grade A+ 6 000 8 400 8 400 8 400 8 400 Grade A 62 636 62 636 68 136 68 136 68 136 Grade B 45 286 45 286 45 286 45 286 45 286 Total 113 922 116 322 121 822 121 822 121 822 Rondebosch/NewlandsGrade A+
Grade A 71 654 71 654 71 654 71 654 71 654 Grade B 30 877 30 877 30 877 30 877 30 877 Total 102 531 102 531 102 531 102 531 102 531 Source of data: SAPOA
Rode’s Report 2020:2 68 Office demand and vacancies
Table 6.2 (continued) SAPOA office stock (m²)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
WaterfrontGrade A+ 51 000 51 000 51 000 51 000 51 000 Grade A 72 455 72 455 72 455 72 455 72 455 Grade B 6 298 6 298 8 248 8 248 8 248 Total 129 753 129 753 131 703 131 703 131 703
Durban BallitoGrade A+ 7 144 8 644 8 644 8 644 8 644 Grade A 15 215 18 869 16 669 16 669 16 669 Grade B 10 593 8 374 9 374 10 374 10 374 Total 32 952 35 887 34 687 35 687 35 687 BereaGrade A+
Grade A 60 191 59 991 59 991 59 991 59 991 Grade B 34 983 34 983 52 317 36 383 52 317 Total 95 174 94 974 112 308 96 374 112 308 CBD DurbanGrade A+
Grade A 209 237 209 237 209 237 209 237 209 237 Grade B 237 147 237 147 237 147 237 147 237 147 Total 446 384 446 384 446 384 446 384 446 384 Hillcrest/GillittsGrade A+
Grade A 36 052 36 032 36 032 34 359 34 359 Grade B 6 402 6 402 6 402 6 402 6 402 Total 42 454 42 434 42 434 40 761 40 761 Umhlanga/La LuciaGrade A+ 72 238 72 238 80 238 83 738 80 238 Grade A 355 941 355 931 365 584 365 584 365 584 Grade B 39 026 39 026 39 026 39 026 39 026 Total 467 205 467 194 484 847 488 347 484 847 WestvilleGrade A+
Grade A 65 221 65 221 65 221 65 221 71 785 Grade B 135 424 135 424 135 424 135 424 135 037 Total 200 645 200 645 200 645 200 645 206 822
Pretoria Arcadia Grade A+ Grade A 125 570 125 570 125 570 119 070 125 570 Grade B 120 740 120 740 120 740 120 740 120 740 Total 246 310 246 310 246 310 239 810 246 310 Brooklyn/Groenkloof/Nieuw Muckleneuk/Waterkloof Grade A+ 46 900Grade A 120 450 120 450 121 584 78 810 121 584 Grade B 135 198 135 198 135 198 136 712 135 198 Total 255 648 255 648 256 782 262 422 256 782 Source of data: SAPOA
Rode’s Report 2020:2 69 Office demand and vacancies
Table 6.2 (continued) SAPOA office stock (m²)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
CBD PretoriaGrade A+
Grade A 134 580 134 580 134 580 134 580 134 580 Grade B 378 272 378 272 378 272 378 272 378 272 Total 512 852 512 852 512 852 512 852 512 852 Centurion CBDGrade A+ 37 230Grade A 251 979 258 779 251 979 216 790 272 164 Grade B 250 027 250 027 248 677 246 680 250 027 Total 502 006 508 806 500 656 500 700 522 191 Hatfield/HillcrestGrade A+ 15 700Grade A 99 170 99 170 99 170 79 770 99 170 Grade B 197 810 197 810 197 810 198 930 197 810 Total 296 980 296 980 296 980 294 400 296 980 Highveld Technopark & Extensions Grade A+ 36 050Grade A 423 000 423 000 429 800 408 197 436 897 Grade B 203 892 203 892 205 242 203 892 203 892 Total 626 892 626 892 635 042 648 139 640 789 Lynnwood/Menlo Park/ Persequor Park/Hazelwood Grade A+ 44 680 44 680 44 680 64 222 44 680 Grade A 99 180 98 430 98 430 67 806 96 615 Grade B 115 186 115 186 115 186 143 366 115 186 Total 259 046 258 296 258 296 275 394 256 481 Menlyn/Faerie Glen/ Ashlea Gardens Grade A+ 4 730 4 730 4 730 109 165 4 730 Grade A 245 765 245 765 244 985 123 650 261 640 Grade B 135 100 135 100 135 880 103 970 135 880 Total 385 595 385 595 385 595 336 785 402 250 Pretoria other Eastern Suburbs/Route 21 Grade A+
Grade A 89 950 89 950 89 950 87 320 89 950 Grade B 214 909 214 909 220 189 244 397 220 639 Total 304 859 304 859 310 139 331 717 310 589 Silver Lakes/The Willows Grade A+ 5 062Grade A 71 249 71 549 71 549 76 939 68 609 Grade B 30 425 30 425 30 425 39 325 30 425 Total 101 674 101 974 101 974 121 326 99 034
Port Elizabeth Central/Park Drive Grade A+
Grade A 1 100 1 100 1 100Grade B 8 366 8 366 8 366 8 366 8 366 Total 9 466 8 366 8 366 9 466 9 466 Source of data: SAPOA
Rode’s Report 2020:2 70 Office demand and vacancies
Table 6.2 (continued) SAPOA office stock (m²)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
GreenacresGrade A+ 4 287 4 287 3 762 3 762 3 762 Grade A 18 608 18 608 16 620 16 620 16 620 Grade B 48 269 48 269 50 189 50 189 50 189 Total 71 164 71 164 70 571 70 571 70 571 HumerailGrade A+ 1 200 1 200Grade A 15 461 14 161 15 361 15 361 15 361 Grade BTotal 15 461 14 161 15 361 16 561 16 561 Newton ParkGrade A+ 16 621 16 621 16 621 16 621 16 621 Grade A 967 967 967 967 967Grade B 3 514 3 514 3 514 3 514 3 514 Total 21 102 21 102 21 102 21 102 21 102 Walmer/Fairview Grade A+ Grade A 23 601 24 701 21 027 19 927 19 927 Grade B 4 210 4 210 5 800 5 800 5 800 Total 27 811 28 911 26 827 25 727 25 727
Major cities Johannesburg central Grade A+ Grade A 773 894 773 894 773 894 773 894 767 807 Grade B 1 079 304 1 017 304 1 062 804 1 005 804 939 804 Total 1 853 198 1 791 198 1 836 698 1 779 698 1 707 611
Johannesburg decentralized
Grade A+ 1 340 093 1 338 956 1 392 916 1 448 705 1 447 479 Grade A 3 718 728 3 638 107 3 598 249 3 611 620 3 613 700 Grade B 2 765 363 2 952 623 3 012 223 2 992 115 3 137 079 Total 7 824 184 7 929 685 8 003 388 8 052 440 8 067 920 Pretoria decentralizedGrade A+ 49 410 49 410 49 410 314 329 49 410 Grade A 1 526 313 1 532 663 1 533 017 1 258 352 1 572 199 Grade B 1 403 287 1 403 287 1 409 347 1 438 012 1 409 797 Total 2 979 010 2 985 360 2 991 774 3 010 693 3 031 406 Durban decentralizedGrade A+ 79 382 80 882 88 882 92 382 88 882 Grade A 532 620 536 044 543 497 541 824 548 388 Grade B 226 428 224 209 242 543 227 609 243 156 Total 838 430 841 134 874 921 861 814 880 425 Cape Town decentralizedGrade A+ 130 080 132 480 132 480 132 480 132 480 Grade A 1 102 870 1 102 870 1 118 156 1 118 156 1 117 886 Grade B 326 058 326 058 328 008 327 983 327 983 Total 1 559 008 1 561 408 1 578 644 1 578 619 1 578 349 Port Elizabeth decentralizedGrade A+ 20 908 20 908 20 383 21 583 21 583 Grade A 59 737 58 437 53 975 53 975 53 975 Grade B 64 359 64 359 67 869 67 869 67 869 Total 145 004 143 704 142 227 143 427 143 427 Source of data: SAPOA
Rode’s Report 2020:2 71 Office demand and vacancies
Table 6.2 (continued) SAPOA office stock (m²)
Grades A+, A & BMarch 2019
June 2019
September 2019
December 2019
March 2020
National decentralizedGrade A+ 1 619 873 1 622 636 1 684 071 2 009 479 1 739 834 Grade A 6 940 268 6 868 121 6 846 894 6 583 927 6 906 148 Grade B 4 785 495 4 970 536 5 059 990 5 053 588 5 185 884 Total 13 345 636 13 461 291 13 590 954 13 646 993 13 701 527 National CBDsGrade A+ 52 000 52 000 52 000 52 000 66 080 Grade A 1 500 094 1 500 094 1 478 634 1 485 334 1 479 247 Grade B 2 214 509 2 139 109 2 184 609 2 127 609 2 061 609 Total 3 766 603 3 691 203 3 715 243 3 664 943 3 606 936 Source of data: SAPOA
Table 6.3 SAPOA office space under construction (m²)
Quarter 2020:1
Size % of new SA developments Pre-let rate
Johannesburg Rosebank 73 512 28,0% 86,2%Waterfall 58 022 22,1% 88,7%Sandton 40 535 15,4% 67,7%Midrand 9 127 3,5% 23,1% Fourways 3 500 1,3% 64,3% Bedfordview 3 550 1,4% 100,0% Total 188 296 71,6% 79,8% Pretoria Highveld Technopark & Ext 15 000 5,7% 90,0% Centurion CBD 14 161 5,4% 42,1% Pta Other Eastern Suburbs/Route 21
1 700 0,6% 0,0%
Total 30 861 11,7% 10,3% Durban Umhlanga/La Lucia 9 500 3,6% 84,9% Westville 4 000 1,5% 100,0% Total 13 500 5,1% 89,4% Cape Town Cape Town CBD 7 540 2,9% 0,0%Century City 14 700 5,6% 0,0%Waterfront 8 000 3,0% 100,0% Total 30 240 11,5% 26,5% Total South Africa 262 847 100,0% 72,2% Source of data: SAPOA
Rode’s Report 2020:2 72 Industrial rentals and vacancies
Chapter 7: Industrial rentals and vacancies
Industrial rental growth slows further
Kobus Lamprecht
It is hard to fully gauge property market trends due to the lack of transactions that took place during Rode’s May survey period. Our survey results show that the industrial market, like other property sectors, is also feeling the impact of the very weak economy, which has been dragged down further by Covid-19 since March 2020. Rental growth slowed to 1% year on year in the second quarter from 2% in the first quarter, with vacancies remaining higher than in 2019.
A positive aspect for the market is that domestic REITs exposed to industrial property have reported a high percentage of rental collections in April and May, especially those linked to logistics where rental collections were in the high nineties. This is because essential retailers have stayed open during the entire lockdown, still generating income. Other companies more severely hit by the virus-related lockdown have received rental holidays or steep discounts, but this appears to be the minority of cases.
Below we first discuss the major factors impacting the market before delving deeper into the rental performance of major industrial conurbations.
Major factors impacting the industrial market
Nominal industrial market rentals in South Africa grew by 1% in the second quarter of 2020 compared to the second quarter of 2019. This was weaker than the 2% rental growth in the first quarter and was the third consecutive quarter of slower growth after rentals still expanded by 6% in the third quarter of 2019. This implies that rentals increased at a slower rate than building-cost inflation (BER BCI), which grew by around 8% in the second quarter.
Rentals were virtually unchanged compared to first-quarter levels. We believe this is
reflective of the very thin market, with few transactions taking place during the lockdown. In fact, most of Rode’s industrial survey respondents said in May that first quarter 2020 data were still applicable. However, many cautioned that the impact of Covid-19 will be seen from the third quarter onwards. Leases that come up for renewal will likely see sharp downward rental reversions as most landlords will aim to keep tenants as the risk of finding good new tenants in this market is high. Vacancies are likely to rise in some cases where landlords are not flexible and can afford to lose tenants or where tenants simply go under.
Rentals have been impacted by the worsening performance of the manufacturing and retail sectors. The manufacturing sector underpins the demand for industrial space for manufacturing production purposes, whereas the retail sector underpins the demand for warehouse space and manufacturing.
The manufacturing sector is under increasing pressure, with official data from Stats SA showing that production declined by 3% in the first quarter of 2020 compared to the first quarter of 2019. This comes after production fell by about 1% in 2019. Business activity fell to an all-time low in April due to the strict lockdown but recovered somewhat in May due to the easing of lockdown measures. The outlook for the sector is very bleak due to poor global and domestic demand, largely stemming from Covid-19, while potential production gains in the future could be limited by electricity supply disruptions – not to mention the ever-growing debt burden of the state that is going to impoverish the next generation too, and so on.
The retail sector is also struggling, with real sales in the 12 months to March up only 1,5%. The year 2020 will be an extremely
Rode’s Report 2020:2 73 Industrial rentals and vacancies
difficult year for the retail sector because consumer spending will come under severe pressure as the economy is expected to contract sharply, compounded by the Covid-19 virus. The June Beeld consensus forecast of top economists pointed to an economy expected to contract by about 7% in 2020.
A positive for the industrial market is the ever-growing demand for a new-generation warehouse or distribution space. The drivers are:
Modern racking systems that makestacking heights of more than 12 metrespossible, thus requiring a new generationof warehouses. This has the potential ofmaking many existing distributioncentres outdated.
Online retail made up 1,4% of total retailsales, according to the findings of World-Wide Worx’s Online Retail in South Africa2019 study. Consumers could preferonline shopping due to the coronaviruscrisis, which will be beneficial to logisticassets. Indeed, logistic-focused REITs,like Equites, have performed quite well inthe lockdown period reporting that itcollected more than 90% of April andMay rent.
Another factor to consider is changes in business confidence as measured by the RMB/BER Business Confidence Index. The accompanying graph shows the strong inverse correlation between industrial property vacancies (national) and business confidence. Naturally, business decision makers can be expected to be hesitant to expand production capacity or storage space by renting more space when they are dissatisfied with prevailing business conditions. The “r²=0,7” shown in the graph implies that about 70% of the change in industrial property vacancies can be explained by changes in business confidence levels, with a lag of about one year. However, if one were to include additional determinants of vacancies in a regression model, the contribution of business confidence to industrial vacancies would be lower than the 70%.
Rode’s national vacancy factor increased to about 2,6 points in the first half of 2020 – the worst level in about two years. However, 2,6 points is still considered ‘low’ on Rode’s vacancy scale of 1-9, implying that less than
5% of industrial property was vacant at the time. Therefore, we are seeing weakening vacancy rates from a low level.
1.2
1.6
2.0
2.4
2.8
3.2
3.6
0
20
40
60
80
100
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Vacancy factorBusiness confidence
Rode's industrial vacancy factor (national)vs
RMB/BER Business Confidence Index
Vac
ancy
sca
le(1
-9)
r² = 0,7 (4-quarter lag)
Business C
onfidence Index
Source of data: Rode's Time Series; BER
smoothed
In the second quarter of 2020, only 5% of respondents surveyed by the BER were satisfied with prevailing business conditions – the lowest since the survey began in1975. The implication is that continued super-low business confidence could result in increasing industrial vacancies in the short term.
The higher vacancy rates led to weaker market rental growth of 1% in the second quarter of 2020, as can be seen in the chart.
-10
0
10
20
30
1.2
1.6
2.0
2.4
2.8
3.2
3.6
92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
RentalsVacancy factors
Change in prime industrial rentalsvs
Industrial property vacanciesNational
r²=0,4
Vacancy scale
(1-9)
Cha
nge
in r
enta
ls(%
; y-
o-y)
Source of data: Rode's Time Series
smoothed
Rental performance
As stated earlier, nominal industrial market rentals grew by 1% year on year in the first quarter of 2020, slowing from about 2% in the first quarter of 2020. This implies that rentals grew by less than the rate of building-cost inflation. In other words, rentals decreased in real terms.
National nominal rental growth for prime industrial space of 500 m² was the fastest in Cape Town at about 4% compared to a year ago. Rental levels stayed roughly the same in the East Rand but fell by 3% in the Central Witwatersrand.
Rode’s Report 2020:2 74 Industrial rentals and vacancies
70
60
50
40
30
20
1000 02 04 06 08 10 12 14 16 18 20
Cape PeninsulaDurbanEast RandCentral Witwatersrand
Nominal prime industrial rentals(500-m² units)
Smoothed
R/m
²(l
og s
cale
)
Source of data: Rode's Time Series
Note in the graph that the East Rand and Central Witwatersrand have the lowest rental levels1 of the four conurbations shown. The exceedingly high rental levels in Durban could possibly be ascribed to one developer that dominates the supply side and maybe is not supplying enough to the market. But in Cape Town, the outperformance must be attributed to the strong demand before Covid-19 came along.
60
56
52
48
44
40
3600 02 04 06 08 10 12 14 16 18 20
Cape PeninsulaDurbanEast RandCentral Witwatersrand
Real prime industrial rentals (500-m² units)2016 rands
Smoothed
R/m
²(l
og s
cale
)
Source of data: Rode's Time Series; BER BCI
As a yardstick of potential future growth in market rentals, we compare pioneer rentals with prevailing market rentals for prime industrial premises of 1 000 m² as in the second quarter of 2020 (see Table 7.1 on the next page). Pioneer rental levels often represent (long) leases signed on newly erected on-demand buildings, and these rentals then reflect today’s building costs, as developers naturally expect an immediate fair income return on their development costs.
Thus, these rentals are an early indicator of the eventual level market rentals will reach once demand catches up with supply in the wake of hoped-for renewed economic growth sometime in the future.
Operating expenses are also an important factor to consider when assessing the profitability or viability of a property (see Table 7.5). Note, as always, that gross operating expenses exclude utility charges like electricity, water and sanitation, which are always for the account of the tenant.
The remainder of this chapter includes: mean prime industrial rentals by
township; the standard deviations from these
mean rentals; indicative operating costs; and the predominant escalation rates.
This concludes our section on industrial rentals and vacancies. Note that our industrial tables follow.
The reference to real means that nominal prices have been deflated (i.e. adjusted for inflation). In this chapter, industrial rentals are deflated by the Bureau for Economic Research’s Building Cost Index (BER BCI). By using building costs as a deflator, the reader can interpret the graphs from a developer’s point of view, i.e. they can serve as a proxy for the viability of new developments over time, holding constant capitalization rates and operating expenses.
The industrial rental tables contain regression parameters to allow readers to interpolate rental rates for area sizes other than those given in the tables. These parameters are necessary because the relationship between rental rates and floor area is not linear. For more details on how to use these equations, refer to Annexure 3 on annexure page XII.
1 Levels as distinct from growth rates
Rode’s Report 2020:2 75 Industrial rentals and vacancies
Readers are reminded that the vacancy figures in the graph above are not actual vacancy percentages, but rather graduations on a 1-9 vacancy scale. For more information, see the notes to the industrial tables on p.101. Furthermore, the vacancies are for all the unit sizes (250 m², 500 m², 1 000 m², 2 500 m² and 5 000 m²) combined, as surveyed by Rode. In reality, vacancies could differ across the different-sized units.
Table 7.1 Pioneer industrial rentals
Highest gross nominal market rental rate achieved (1 000 m² units) Quarter 2020:2
Rands per rentable m², gross leases (excl. VAT)
Pioneer Normal prime mean
Inferred growth potential
Central Witwatersrand 85 50 72%West Rand 85 41 105%
East Rand 80 49 62%Durban 85 62 37%Cape Peninsula 80 53 51%Port Elizabeth 80 40 98%
Tab
le 7
.2
Mea
n p
rim
e in
du
stri
al m
arke
t re
nta
ls a
s in
qu
arte
r 2
02
0:2
(R
/m²
p.m
.; g
ross
leas
e; e
xcl.
VA
T)
Are
a si
ze le
ased
in m
² V
acan
cy
a b
r²
2
50
5
00
1
.00
0
2.5
00
5
.00
0
Cen
tral
Wit
wat
ersr
and
Cam
brid
ge P
ark
65
,38
64,6
362
,00
62,0
065
,67
3,2
4,18
6-0
,004
0,03
Wyn
berg
Pro
per
48
,65
46,3
745
,11
43,1
938
,37
2,7
4,29
0-0
,072
0,92
Str
ijdom
Par
k
53,9
653
,79
52,4
348
,32
49,7
73,
0 4,
196
-0,0
360,
79Kya
San
d W
est
47,6
347
,20
46,3
446
,36
42,6
03,
0 4,
049
-0,0
320,
73Kya
San
d Ea
st
65,0
0-
45,0
0-
--
--
-La
nser
ia C
orpo
rate
Est
ate
--
--
--
--
-Cos
mo
Bus
ines
s Pa
rk
-58
,00
58,0
0-
60,0
0-
--
-M
osty
n Pa
rk
--
--
--
--
-Cla
yvill
e/O
lifan
tsfo
ntei
n
55,0
053
,60
55,2
052
,00
49,0
02,
6 4,
213
-0,0
350,
73Chl
oork
op
52,2
049
,83
46,1
749
,57
45,0
03,
2 4,
148
-0,0
380,
58Am
alga
m
41,0
038
,33
37,0
036
,50
35,6
71,
0 3,
926
-0,0
430,
89Cro
wn
Min
es
43,0
043
,00
40,7
538
,75
40,5
03,
5 3,
926
-0,0
300,
66In
dust
ria
41
,25
40,0
035
,00
30,5
030
,00
5,0
4,39
6-0
,120
0,95
Boo
ysen
s/Boo
ysen
s Res
erve
/ O
phirto
n 36
,33
35,0
035
,00
29,1
728
,17
1,5
4,13
1-0
,093
0,89
Vill
age
Mai
n/Vill
age
Dee
p/N
ew
Cen
tre
38,5
037
,50
35,0
034
,00
31,0
02,
0 4,
045
-0,0
700,
95
Ben
rose
37
,33
37,3
333
,67
33,3
333
,00
4,5
3,88
1-0
,047
0,82
Ste
eled
ale/
Elec
tron
/Tul
isa
Park
42
,50
39,2
537
,00
35,5
033
,25
2,0
4,16
1-0
,077
0,98
Aer
oton
48
,25
46,7
546
,50
44,6
044
,00
1,5
4,04
3-0
,031
0,97
Dev
land
/Nan
cefie
ld
45,0
040
,00
35,0
030
,00
25,0
02,
0 4,
880
-0,1
920,
99Cle
vela
nd/H
erio
tdal
e
37,6
737
,67
37,0
036
,67
36,3
31,
0 3,
704
-0,0
130,
95N
ewla
nds/
Mar
tinda
le
42,5
040
,00
37,5
032
,50
30,0
04,
0 4,
426
-0,1
200,
99Kew
/Wyn
berg
Eas
t
43,5
040
,71
36,7
536
,17
30,4
02,
3 4,
379
-0,1
090,
92Bra
mle
y Vie
w/L
omba
rdy
Wes
t
45,0
040
,00
32,5
027
,50
22,5
01,
0 5,
099
-0,2
310,
99
Rode’s Report 2020:2 76 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
M
arlb
oro
37
,50
32,5
027
,50
22,5
017
,50
1,0
5,02
0-0
,249
0,99
Hal
fway
Hou
se:
hi-t
ech
strip
61
,00
59,4
359
,57
59,8
858
,75
2,8
4,15
0-0
,009
0,57
Hal
fway
Hou
se:
Ric
hard
s D
rive
57
,71
56,0
055
,67
54,2
553
,75
3,3
4,17
6-0
,023
0,96
Cor
pora
te P
ark
(Mid
rand
) -
--
--
- -
--
Com
mer
cia
51
,75
51,2
550
,00
50,0
049
,25
1,1
4,03
3-0
,016
0,91
Kra
mer
ville
/Eas
tgat
e Ex
t12
&
Ext1
3 76
,33
71,8
062
,50
58,7
556
,67
2,0
4,90
0-0
,104
0,95
Linb
ro P
ark
69,1
468
,00
66,8
363
,70
62,6
23,
0 4,
434
-0,0
350,
98W
esco
Par
k/Ea
stga
te E
xt3,
Ex
t11,
Ext
6, E
xt8/
Mal
boro
Nor
th
(New
)
67,5
064
,00
56,6
753
,00
52,6
71,
2 4,
697
-0,0
900,
93
City
Dee
p
43,8
843
,63
42,3
842
,40
41,8
01,
0 3,
871
-0,0
160,
89N
orth
Rid
ing/
Hoo
glan
d 61
,50
61,0
059
,50
58,0
058
,00
2,3
4,24
2-0
,022
0,94
Sam
rand
Cen
turion
69
,00
66,6
766
,17
66,2
963
,17
3,9
4,35
8-0
,024
0,81
Bar
bequ
e D
owns
68
,20
65,4
064
,50
62,0
060
,75
1,6
4,42
3-0
,037
0,98
Sel
by E
xt 1
2/13
/15/
19/2
0/24
/ City
Wes
t
42,0
040
,00
40,0
035
,00
32,0
0-
4,25
7-0
,090
0,92
Sel
by E
xt 5
/10/
14/1
8
42,0
040
,50
39,5
037
,50
36,5
02,
0 3,
997
-0,0
471,
00Sel
by E
xt 1
1
41,0
040
,00
38,0
036
,50
34,0
02,
0 4,
061
-0,0
610,
97Sel
by E
xt 3
/4/6
41
,00
40,0
038
,00
36,5
034
,00
2,0
4,06
1-0
,061
0,97
Den
ver
(Old
)
25,6
725
,67
25,0
025
,00
24,0
03,
0 3,
368
-0,0
210,
84D
enve
r (N
ew)
43
,25
43,7
543
,25
42,5
042
,25
2,0
3,83
2-0
,010
0,74
Kya
lam
i Bus
ines
s Pa
rk
66,5
066
,25
63,0
063
,00
60,0
01,
8 4,
388
-0,0
330,
89Reu
ven
40
,50
40,5
040
,50
40,5
040
,50
1,0
3,70
10,
000
0,00
Sel
by (
Old
)/Sel
by E
xt2/
Park
Cen
tral
31
,00
30,5
030
,00
28,5
028
,00
1,0
3,63
9-0
,036
0,97
Rode’s Report 2020:2 77 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Rob
erts
ham
46
,50
40,0
038
,00
37,5
035
,00
1,0
4,24
2-0
,082
0,86
Ford
sbur
g/N
ewto
wn
42,0
041
,50
41,5
038
,00
37,5
02,
0 3,
986
-0,0
420,
87W
ater
fall
71,3
371
,33
69,2
569
,25
66,2
52,
3 4,
403
-0,0
230,
85Lo
rds
Vie
w-
--
--
--
--
Cen
tral
Wit
wat
ersr
and
5
1,7
75
0,7
64
9,5
24
7,5
64
5,8
32
,4
Wes
t R
and
Le
a G
len
35,5
036
,00
33,0
031
,50
29,0
01,
9 3,
990
-0,0
710,
92H
oney
dew
X19
/20/
21/2
2 53
,00
53,0
050
,80
49,4
048
,00
1,9
4,17
6-0
,035
0,96
Sto
rmill
41,3
341
,00
39,8
639
,33
38,4
01,
7 3,
861
-0,0
250,
97Cha
mdo
r35
,20
33,2
533
,40
30,0
028
,00
1,7
3,98
2-0
,074
0,93
Fact
oria
40,0
040
,00
38,0
035
,00
30,0
01,
0 4,
251
-0,0
940,
87Kru
gers
dorp
: D
elpo
rton
30
,00
30,0
025
,00
20,0
018
,00
1,0
4,50
5-0
,189
0,95
Ran
dfon
tein
: Aur
eus
30,0
030
,00
25,0
020
,00
18,0
01,
0 4,
505
-0,1
890,
95Bol
toni
a35
,00
33,0
030
,00
30,0
025
,00
1,0
4,11
4-0
,100
0,89
Roo
depo
ort:
Tec
hnik
on/
Man
ufac
ta
40,0
034
,50
33,5
029
,00
25,6
72,
0 4,
448
-0,1
400,
98
Indu
stria
Nor
th
36,0
036
,00
33,5
031
,00
30,5
02,
0 3,
952
-0,0
640,
94Rob
ertv
ille
41,6
741
,67
40,1
440
,57
39,0
01,
8 3,
848
-0,0
210,
79La
serp
ark
59,3
157
,88
56,7
153
,86
52,1
73,
0 4,
328
-0,0
440,
99W
est
Ran
d
44
,29
43
,67
41
,37
39
,79
36
,92
1,9
Ea
st R
and
El
ands
font
ein
43,2
242
,15
41,2
241
,61
41,8
83,
0 3,
805
-0,0
100,
42Tu
nney
/Gre
enhi
lls59
,06
57,2
257
,56
55,6
355
,86
2,1
4,17
4-0
,019
0,84
Hen
ville
45,0
045
,25
45,0
044
,75
44,2
51,
1 3,
845
-0,0
060,
71H
ughe
s
56,6
056
,57
56,0
054
,40
52,5
01,
8 4,
187
-0,0
250,
88Bar
tlett
s
58,2
558
,25
60,0
060
,00
60,0
01,
7 4,
002
0,01
20,
73Li
liant
on
33,7
533
,75
--
37,5
01,
7 -
--
Rode’s Report 2020:2 78 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
M
eado
wbr
ook/
Wilb
art
54,8
357
,13
54,5
654
,21
54,0
02,
0 4,
084
-0,0
110,
35Sun
nyro
ck54
,30
53,6
253
,22
52,3
353
,00
1,4
4,04
3-0
,010
0,71
Rus
tivia
/Act
ivia
Par
k 45
,29
45,1
445
,17
43,6
043
,00
2,0
3,92
4-0
,019
0,86
East
leig
h47
,80
42,8
043
,33
42,0
040
,75
3,1
4,07
5-0
,044
0,77
Seb
enza
Ext
14
45,3
345
,50
45,8
844
,14
44,5
02,
9 3,
874
-0,0
090,
49Spa
rtan
Ext
16
(Seb
enza
Lin
k)
+ E
xt 1
/3/7
48
,71
47,5
746
,50
45,5
745
,29
2,5
4,01
7-0
,025
0,96
Isan
do
49,3
248
,54
47,5
047
,40
46,8
24,
0 3,
985
-0,0
170,
92Is
ando
3
50,3
549
,94
49,2
247
,50
46,4
33,
2 4,
082
-0,0
280,
96Je
t Pa
rk
53,0
853
,50
53,4
252
,36
52,5
03,
2 4,
012
-0,0
060,
54Alrod
e &
Xs
40,5
040
,00
36,8
036
,00
36,0
01,
9 3,
944
-0,0
450,
86Alrod
e Sou
th
40,7
539
,60
37,2
035
,80
37,2
52,
7 3,
897
-0,0
370,
71Alb
erto
n44
,67
42,0
039
,00
36,6
737
,33
2,0
4,13
8-0
,065
0,89
Aer
opor
t/Spa
rtan
Ext
2
55,3
855
,78
55,1
454
,57
52,8
33,
1 4,
110
-0,0
150,
75D
elvi
lle35
,38
34,8
832
,83
32,8
331
,25
2,3
3,78
9-0
,040
0,92
Roo
deko
p38
,58
37,0
034
,80
34,0
034
,67
3,6
3,84
9-0
,039
0,78
Wad
evill
e: I
ndus
tria
l zon
ing
40,5
039
,86
38,0
037
,30
35,0
82,
2 3,
964
-0,0
460,
95Rou
te 2
4/M
eado
wda
le
51,1
351
,25
51,1
350
,57
51,5
03,
0 3,
934
0,00
00,
00G
erm
isto
n S/I
ndus
trie
s E
35,5
035
,50
34,6
334
,63
33,1
31,
5 3,
695
-0,0
210,
83D
rieh
oek/
Indu
stries
W
41,5
041
,42
40,7
038
,13
36,6
31,
5 3,
990
-0,0
440,
91Kni
ghts
35,1
335
,13
32,5
032
,17
30,1
71,
7 3,
854
-0,0
510,
91Spa
rtan
Pro
per
51,1
151
,11
48,7
145
,38
44,2
52,
4 4,
250
-0,0
540,
95Fo
unde
rs V
iew
60
,67
58,8
357
,83
56,2
052
,00
1,6
4,36
9-0
,047
0,91
Long
mea
dow
66,6
766
,45
65,1
465
,11
64,5
52,
8 4,
261
-0,0
110,
89Po
mon
a/Kem
pton
Par
k 60
,82
61,1
060
,80
60,0
059
,22
3,2
4,16
7-0
,010
0,80
Rode’s Report 2020:2 79 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
G
osfo
rth
Park
64
,25
64,2
563
,63
63,4
3 62
,67
4,8
4,21
1-0
,008
0,91
S&
J In
dust
rial
Est
ate
64,3
364
,33
63,3
362
,50
62,6
01,
0 4,
227
-0,0
110,
89Ea
st R
and
5
0,7
45
0,3
74
9,4
84
8,6
1
48
,34
2,5
Fa
r Ea
st R
and
Bok
sbur
g N
orth
& E
ast
45,5
041
,50
40,4
238
,14
37,3
33,
0 4,
141
-0,0
630,
94Ben
oni S
outh
41
,00
39,5
038
,33
35,6
7 34
,33
2,5
4,05
2-0
,060
0,99
New
Era
/Vul
cani
a 36
,50
33,5
026
,50
26,5
0 26
,50
4,0
4,18
0-0
,113
0,77
Nuf
field
36,5
035
,00
31,0
030
,50
30,0
04,
0 3,
963
-0,0
690,
87Fu
lcru
m23
,00
28,0
025
,00
25,0
0 25
,00
1,0
3,18
30,
006
0,01
Ape
x48
,25
46,2
541
,20
39,5
0 36
,75
3,5
4,38
5-0
,092
0,97
Labo
re B
rakp
an
40,0
040
,00
35,0
030
,00
30,0
03,
0 4,
348
-0,1
150,
92M
oreh
ill E
xt 8
Ben
oni
48,0
045
,67
41,3
339
,33
37,3
32,
0 4,
339
-0,0
850,
98Fa
r Ea
st R
and
4
2,9
34
0,6
13
7,5
03
5,6
1
34
,27
3,0
P
reto
ria
Cha
rlot
te M
axek
e 47
,50
42,5
031
,00
27,0
0 27
,00
2,0
4,97
8-0
,207
0,90
Pret
oria
Ind
ustr
ial T
owns
hip
37,0
035
,00
29,5
022
,50
20,0
02,
0 4,
882
-0,2
220,
98Koe
does
poor
t47
,90
45,7
039
,43
33,9
0 30
,75
4,0
4,75
7-0
,156
0,99
Wal
tloo/
Des
patc
h54
,50
52,5
050
,50
49,0
0 48
,67
2,5
4,20
2-0
,039
0,95
Silv
erto
n/Silv
erto
ndal
e50
,80
49,0
844
,67
42,5
0 38
,40
3,5
4,44
9-0
,092
0,97
Sam
cor
Park
55
,00
52,5
050
,00
47,5
0 43
,00
2,0
4,44
5-0
,078
0,97
Sun
derlan
d Rid
ge
55,0
055
,00
55,0
052
,50
50,5
04,
0 4,
184
-0,0
290,
82H
erm
anst
ad47
,50
42,6
031
,60
27,6
0 27
,50
2,0
4,93
9-0
,200
0,91
Kirkn
ey
32,5
030
,00
28,0
025
,00
21,5
02,
0 4,
230
-0,1
330,
98H
enno
pspa
rk X
15 &
X7
70,0
065
,07
65,0
060
,77
60,0
01,
3 4,
507
-0,0
500,
93G
atew
ay60
,83
59,8
356
,68
55,0
0 53
,75
2,5
4,35
0-0
,044
0,97
Rode’s Report 2020:2 80 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Ly
ttel
ton
Man
or X
4/X6
52,5
052
,50
50,0
045
,00
42,5
01,
0 4,
415
-0,0
770,
93Pr
etor
ia N
orth
37
,50
35,0
030
,00
25,0
0 22
,50
2,0
4,63
7-0
,179
0,99
Silv
erto
ndal
e X1
50,0
047
,50
45,0
042
,43
38,3
33,
3 4,
387
-0,0
850,
98Kle
rkso
ord
35,5
531
,10
29,0
026
,10
21,0
03,
0 4,
463
-0,1
610,
96Ros
slyn
38,1
037
,50
37,5
034
,90
35,0
53,
0 3,
824
-0,0
320,
86Cen
turion
66,6
064
,67
65,0
060
,83
60,0
03,
0 4,
401
-0,0
360,
92P
reto
ria
50
,94
48
,61
45
,33
41
,59
3
9,4
32
,7
Pol
okw
ane
Lebo
wak
gom
o-
--
- -
- -
--
Sup
erbi
a45
,00
40,0
033
,00
27,0
0 25
,00
2,0
4,94
6-0
,207
0,99
Indu
stria
50,0
040
,00
35,0
030
,00
30,0
01,
0 4,
791
-0,1
710,
91La
dine
40,0
035
,00
30,0
027
,00
25,0
03,
5 4,
531
-0,1
570,
98Fu
tura
35,0
035
,00
30,0
0-
-2,
0 -
--
Labo
ria
47,0
045
,00
35,0
045
,00
-1,
0 -
--
Mag
na V
ia
57,5
050
,00
45,0
052
,50
-1,
5 -
--
Ses
hego
--
--
--
--
-P
olok
wan
e 4
7,4
34
1,6
73
4,6
73
9,8
6
26
,67
1,9
N
elsp
ruit
Nel
spru
it Ea
st
57,0
843
,42
37,0
835
,00
-4,
0 -
--
Nel
spru
it W
est
55,0
052
,08
42,9
242
,08
45,0
03,
0 4,
411
-0,0
800,
64Roc
ky's
Drift
39
,17
40,0
036
,50
35,0
0 35
,00
3,0
3,94
4-0
,047
0,83
Riv
ersi
de P
ark
70,8
360
,83
52,9
255
,00
55,0
03,
0 4,
612
-0,0
780,
62N
elsp
ruit
5
5,5
24
9,0
84
2,3
54
1,7
7
48
,85
3,3
D
urb
an
Spr
ingf
ield
Par
k 69
,88
69,8
866
,88
66,6
3 65
,00
3,0
4,39
0-0
,025
0,90
May
ville
--
--
--
--
-
Rode’s Report 2020:2 81 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Ph
oeni
x50
,00
50,0
050
,00
52,5
0 52
,50
2,0
3,79
30,
020
0,79
Chr
is H
ani R
d (N
orth
Coa
st/
Briar
dene
) 71
,67
69,1
767
,50
65,5
0 64
,00
2,0
4,47
0-0
,037
0,99
Briar
dene
Ind
ustr
ial P
ark
71,2
569
,38
69,3
868
,63
67,3
82,
0 4,
349
-0,0
160,
90U
mge
ni R
d/Sta
mfo
rd H
ill
60,0
060
,00
55,0
055
,00
-3,
0 -
--
Um
bilo
/Syd
ney
Rd/
Mag
waz
a M
apha
lala
St
(Gal
e)
60,0
060
,00
60,0
060
,00
60,0
03,
0 4,
094
--
Jaco
bs52
,50
53,3
353
,33
54,0
0 54
,00
3,0
3,91
50,
009
0,88
Mob
eni
52,5
050
,00
53,7
555
,00
55,0
02,
0 3,
799
0,02
50,
57Pr
ospe
cton
60,0
058
,75
58,3
358
,33
58,3
32,
5 4,
130
-0,0
080,
64It
hala
Ind
ustr
ial E
stat
e 70
,25
70,2
570
,25
70,2
5 67
,75
6,0
4,31
1-0
,010
0,50
Pine
tow
n Cen
tral
57
,50
55,0
055
,00
55,0
0 -
3,0
--
-N
ew G
erm
any
56,5
056
,00
56,5
055
,00
55,0
03,
0 4,
090
-0,0
100,
74Is
ipin
go50
,00
47,5
046
,67
- -
- -
--
Ros
sbur
gh/S
outh
Coa
st R
d 55
,00
55,0
055
,00
57,5
0 57
,50
1,0
3,89
90,
018
0,79
Edw
in S
wal
es D
rive
55
,00
55,0
055
,00
55,0
0 55
,00
- 4,
007
--
Gle
n Ani
l 71
,88
71,8
870
,63
66,8
8 65
,63
2,0
4,47
6-0
,034
0,92
Felix
Dla
min
i Rd
(Brick
field
) -
--
- -
- -
--
Ver
ulam
--
--
--
--
-Can
elan
ds-
--
- -
- -
--
Tong
aat
--
-38
,00
35,0
02,
0 -
--
New
Wes
tmea
d/M
ahog
any
64
,00
64,0
064
,00
62,5
0 62
,50
3,0
4,21
7-0
,010
0,79
Wes
tmea
d60
,00
60,0
060
,00
60,0
0 60
,00
3,0
4,09
4-
-M
aria
nn P
ark/
Sou
thm
ead
-55
,00
55,0
055
,00
-2,
0 -
--
Max
mea
d65
,00
63,5
063
,50
62,5
0 62
,50
2,0
4,23
6-0
,012
0,86
Rin
groa
d In
dust
rial
Par
k 65
,00
65,0
065
,00
62,0
0 -
2,0
--
-
Rode’s Report 2020:2 82 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Avo
ca/R
ed H
ill/N
orth
gate
72
,50
72,5
070
,00
65,0
0 62
,50
2,0
4,60
3-0
,054
0,94
Falc
on P
ark
60,0
060
,00
60,0
0-
-2,
0 -
--
Riv
erho
rse
Val
ley
Bus
ines
s Es
tate
80
,75
79,5
077
,00
75,0
0 72
,50
3,0
4,59
4-0
,036
0,99
Mou
nt E
dgec
ombe
72
,25
72,5
070
,75
68,7
5 67
,50
4,5
4,42
9-0
,025
0,94
Um
bogi
ntw
ini/
Sou
thga
te
61,5
060
,00
60,0
052
,50
52,5
02,
0 4,
469
-0,0
600,
86Sou
thga
te I
ndus
tria
l Par
k 61
,67
60,6
760
,00
57,5
0 57
,50
2,0
4,26
5-0
,026
0,94
Um
geni
Par
k 65
,00
65,0
065
,00
61,0
0 61
,00
2,5
4,32
9-0
,026
0,79
Ham
mer
sdal
e 41
,00
41,0
039
,00
39,0
0 39
,33
3,2
3,80
6-0
,017
0,63
Cat
o Rid
ge
48,0
048
,00
48,0
042
,50
54,0
02,
0 3,
776
0,01
40,
04Bal
lito
-
--
- -
- -
--
Dub
e Tr
adep
ort
--
--
--
--
-Cor
nubi
a
84,5
078
,13
75,6
373
,63
72,3
84,
0 4,
676
-0,0
480,
89D
urb
an
65
,45
63
,70
62
,19
61
,09
6
1,0
32
,7
Lad
ysm
ith
Ezak
heni
/Pie
ters
--
--
--
--
-D
ansk
raal
20,0
017
,00
12,0
010
,00
8,00
3,0
4,70
6-0
,310
0,98
Nam
biti
20,0
017
,00
12,0
010
,00
8,00
3,0
4,70
6-0
,310
0,98
Col
enso
--
--
--
--
-La
dys
mit
h
20
,00
17
,00
12
,00
10
,00
8
,00
3,0
C
ape
Pen
insu
la
Vik
ing
Plac
e 56
,67
51,6
751
,67
54,0
0 52
,00
1,5
4,08
2-0
,016
0,22
Glo
sder
ry70
,00
63,7
558
,75
57,5
0 55
,00
1,0
4,63
9-0
,076
0,92
Paar
den
Eila
nd/M
etro
65
,29
62,1
358
,64
57,1
9 56
,25
1,7
4,43
9-0
,050
0,93
Mon
tagu
e G
arde
ns
62,7
059
,96
56,3
254
,80
52,4
02,
6 4,
455
-0,0
590,
98M
arco
ni B
eam
61
,22
59,2
255
,56
51,3
3 49
,50
2,0
4,53
5-0
,075
0,99
Rode’s Report 2020:2 83 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Kill
arne
y G
arde
ns
51,2
049
,20
45,2
842
,00
38,6
03,
9 4,
473
-0,0
950,
99Rac
ing
Park
42
,50
40,7
539
,00
34,5
0 38
,33
4,8
4,01
0-0
,050
0,58
Atla
ntis
60,0
055
,00
50,0
042
,50
40,0
0-
4,87
8-0
,141
0,99
Woo
dsto
ck/S
alt
Riv
er/
Obs
erva
tory
68
,75
63,8
361
,42
55,6
7 48
,75
3,0
4,84
2-0
,109
0,96
Ath
lone
1 &
2
45,0
040
,00
40,0
0-
--
--
-La
nsdo
wne
Ner
issa
50
,00
45,0
050
,00
35,0
0 35
,00
1,0
4,66
0-0
,130
0,75
San
d In
dust
ria
--
--
--
--
-O
tter
y H
illst
ar
65,0
056
,67
55,0
055
,00
55,0
02,
0 4,
373
-0,0
470,
60O
tter
y Sun
set
65,0
055
,00
55,0
055
,00
55,0
01,
0 4,
339
-0,0
430,
47D
iep
Riv
er
78,3
361
,25
58,5
0-
-1,
7 -
--
Elfin
dale
85,0
060
,00
55,0
0-
-1,
0 -
--
Mon
woo
d/Ph
ilipp
i-
--
- -
- -
--
Ret
reat
/Ste
enbe
rg65
,00
65,0
065
,00
50,0
0 -
2,0
--
-Cap
rico
rn P
ark
63,7
562
,50
57,5
055
,83
55,0
02,
0 4,
448
-0,0
530,
92M
aitla
nd60
,13
54,6
351
,67
49,8
3 47
,50
2,0
4,47
6-0
,073
0,95
Nda
beni
62,6
460
,86
55,7
155
,63
53,7
51,
5 4,
414
-0,0
510,
89Ep
ping
1 &
2
58,0
357
,25
52,2
650
,86
50,4
32,
1 4,
348
-0,0
520,
89W
P Pa
rk
51,6
751
,67
46,6
746
,67
42,5
01,
5 4,
314
-0,0
640,
88El
sies
Riv
er (
excl
. Cen
tral
Par
k)
46,2
545
,75
43,7
542
,25
41,5
01,
5 4,
054
-0,0
390,
97Pa
row
Bea
conv
ale
52,5
052
,00
51,0
046
,25
43,3
32,
3 4,
356
-0,0
670,
91Ty
gerb
erg
Bus
ines
s Pa
rk
57,5
055
,00
52,5
047
,50
45,0
01,
3 4,
527
-0,0
840,
99Pa
row
Ind
ustr
ia
55,3
353
,33
49,7
547
,00
43,4
02,
3 4,
466
-0,0
800,
99Pa
row
Eas
t 55
,00
51,6
748
,33
45,0
0 42
,50
1,3
4,47
8-0
,086
1,00
Bel
lvill
e O
akda
le
52,5
047
,50
42,5
037
,50
35,0
02,
0 4,
714
-0,1
380,
99Bel
lvill
e Stik
land
/Kay
mor
58
,00
55,8
351
,67
50,7
5 48
,75
2,5
4,37
2-0
,058
0,95
Rode’s Report 2020:2 84 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Bel
lvill
e Tr
iang
le
51,0
048
,00
45,0
041
,00
39,2
52,
5 4,
427
-0,0
901,
00Bel
lvill
e Sou
th/S
acks
Circl
e 52
,50
50,2
947
,50
45,4
0 45
,50
4,3
4,23
1-0
,051
0,93
Kra
aifo
ntei
n44
,33
42,6
740
,00
40,0
0 38
,33
- 4,
036
-0,0
460,
92Bra
cken
fell
Indu
stria
60,0
055
,00
52,5
050
,00
51,6
72,
0 4,
344
-0,0
520,
77Ev
erite
Bra
cken
fell
61,6
758
,33
54,3
353
,33
55,0
02,
3 4,
322
-0,0
410,
69Kui
ls R
iver
50
,00
45,0
042
,50
40,0
0 40
,00
- 4,
285
-0,0
740,
90Bla
ckhe
ath
51,8
847
,70
45,8
343
,00
41,8
32,
7 4,
317
-0,0
700,
97Sax
enbu
rg I
ndus
tria
l Par
k 60
,00
55,6
755
,00
51,7
5-
2,0
--
-O
kava
ngo
58,7
553
,00
50,0
051
,67
50,0
01,
0 4,
272
-0,0
440,
64Bra
cken
gate
/Ico
n Bus
ines
s Pa
rk
67,5
065
,00
66,2
564
,00
65,0
01,
5 4,
268
-0,0
120,
50Pa
arl
53,3
348
,75
42,5
035
,83
35,0
03,
0 4,
811
-0,1
520,
97W
ellin
gton
47,5
046
,50
38,5
034
,00
32,5
03,
5 4,
660
-0,1
410,
95Con
term
ansk
loof
70,0
065
,00
61,0
060
,75
66,0
01,
0 4,
331
-0,0
240,
23Riv
erga
te66
,25
63,7
560
,71
61,0
0 58
,25
1,9
4,39
9-0
,039
0,90
Airpo
rt I
nd (
nort
h of
sew
erag
e fa
rm)
59,9
459
,69
58,1
957
,94
57,1
91,
7 4,
183
-0,0
160,
93
Airpo
rt I
nd (
wes
t of
Bor
cher
ds
Qua
rry)
61
,67
60,8
061
,00
59,0
8 58
,75
1,8
4,21
6-0
,017
0,91
Airpo
rt I
nd (
east
of
Bor
cher
ds
Qua
rry)
71
,42
69,6
369
,17
67,1
7 66
,20
1,8
4,40
3-0
,025
0,98
Dur
banv
ille
Indu
strial
Par
k 66
,25
62,5
058
,33
56,6
7 60
,00
1,0
4,37
5-0
,039
0,57
Nor
thga
te I
ndus
tria
l Par
k 95
,00
90,0
081
,25
78,0
0 76
,25
1,5
4,96
1-0
,076
0,94
Cap
e P
enin
sula
59,03
55,96
52,70
50,51
49,27
2,2
H
eld
erb
erg
Th
e In
terc
hang
e -
--
- -
- -
--
Hel
derb
erg
Indu
strial
Par
k/
Bro
adla
nds
--
--
--
--
-
Gan
ts
--
--
--
--
-
Rode’s Report 2020:2 85 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Som
erse
t Bus
ines
s Pa
rk
--
--
--
--
-G
eorg
es P
ark/
Onv
erw
acht
-
--
- -
- -
--
Man
sfie
ld-
--
--
--
--
Firg
rove
Ind
ustr
ial E
stat
e -
50,0
050
,00
- -
- -
--
Str
and
Hal
t-
--
- -
--
--
Hel
der
ber
g
--
--
--
Ste
llen
bos
ch
Plan
kenb
rug
--
--
--
--
-D
evon
Val
ley
--
--
--
--
-Te
nant
ville
--
--
--
--
-Kla
pmut
s-
--
--
--
--
Ste
llen
bos
ch
--
--
--
Por
t El
izab
eth
D
eal P
arty
42
,50
41,0
039
,00
38,4
0 38
,00
3,8
3,94
6-0
,038
0,91
Nor
th E
nd
42,5
042
,50
38,6
039
,00
37,4
03,
8 3,
998
-0,0
440,
83Kor
sten
/Nea
ve/S
idw
ell/
Syd
enha
m
37,0
036
,50
35,5
035
,00
34,4
03,
5 3,
746
-0,0
250,
98
Sou
th E
nd W
alm
er
53,3
353
,33
49,1
745
,00
45,0
03,
0 4,
365
-0,0
680,
92U
itenh
age:
Vol
ksw
agen
31
,25
31,2
530
,00
29,6
0 29
,00
6,5
3,59
5-0
,027
0,93
Uite
nhag
e: H
ella
/Kru
isrivi
er
27,5
028
,13
27,1
026
,70
25,5
06,
5 3,
483
-0,0
270,
77Str
uand
ale
36,6
736
,67
36,2
535
,60
36,5
03,
3 3,
629
-0,0
050,
26M
arkm
an T
owns
hip
29,1
729
,17
28,6
028
,20
28,0
07,
0 3,
461
-0,0
150,
95Pe
rsev
eran
ce35
,63
35,6
333
,10
32,7
0 32
,50
4,3
3,76
9-0
,035
0,84
Wal
mer
58,1
358
,13
54,3
847
,50
47,5
02,
0 4,
534
-0,0
810,
91G
reen
bush
es51
,67
54,3
850
,90
49,9
0 49
,90
2,8
4,08
3-0
,021
0,50
Fairvi
ew72
,50
67,5
068
,00
62,5
0 60
,00
3,8
4,61
0-0
,060
0,94
Por
t El
izab
eth
4
3,3
94
2,8
64
0,4
33
8,2
8
36
,94
4,1
Rode’s Report 2020:2 86 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
a
b
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Ea
st L
ond
on
Arc
adia
55
,00
45,0
040
,00
30,0
0 30
,00
3,0
5,15
6-0
,214
0,95
Gat
ely/
Woo
dbro
ok50
,00
40,0
040
,00
35,0
0 27
,00
5,5
4,88
1-0
,179
0,91
Wils
onia
35
,00
30,0
025
,00
25,0
0 20
,00
9,0
4,46
0-0
,169
0,92
Bra
elyn
40
,00
35,0
035
,00
30,0
0 25
,00
5,0
4,49
4-0
,144
0,93
Nor
then
d
50,0
040
,00
35,0
030
,00
25,0
05,
0 5,
089
-0,2
190,
99Chi
selh
urst
45
,00
40,0
035
,00
25,0
0 22
,00
5,0
5,23
5-0
,252
0,98
Mei
sies
Hal
t 60
,00
50,0
040
,00
35,0
0 30
,00
1,0
5,32
6-0
,228
0,98
Bea
con
Bay
Ind
ustr
ial
50,0
040
,00
35,0
0-
-1,
0 -
--
IDZ
--
--
--
--
-W
est
Ban
k In
dust
rial
Are
a 30
,00
25,0
025
,00
- -
- -
--
East
Lon
don
4
6,1
13
8,3
33
4,4
43
0,0
0
25
,75
4,3
B
loem
fon
tein
Hilt
on49
,40
45,4
038
,20
32,0
0 28
,67
3,4
4,96
2-0
,190
0,99
East
End
48
,80
46,2
038
,80
35,5
0 28
,67
4,0
4,87
9-0
,174
0,96
Har
vey
Roa
d 41
,60
38,8
033
,20
34,5
0 30
,00
3,8
4,26
3-0
,100
0,86
Old
Ind
ustr
ial
40,0
036
,75
35,8
031
,00
25,7
54,
8 4,
482
-0,1
390,
93H
amilt
on:
Mill
St
35,3
333
,80
29,2
028
,50
24,7
54,
3 4,
210
-0,1
150,
94H
amilt
on:
G L
ubbe
St
34,7
534
,50
29,5
028
,00
23,5
05,
1 4,
302
-0,1
300,
93Es
toire
49,2
048
,00
45,2
042
,75
40,7
53,
1 4,
262
-0,0
650,
99Q
uagg
afon
tein
50,0
050
,00
59,0
059
,50
50,0
03,
8 3,
824
0,02
20,
08B
loem
fon
tein
4
3,7
54
1,0
63
7,1
73
5,0
3
29
,65
4,0
G
eorg
e
Geo
rge
Cen
tral
42
,33
37,3
331
,67
25,6
7 24
,33
1,5
4,81
8-0
,195
0,98
Tam
sui I
ndus
tria
43
,33
39,0
033
,33
26,3
3 25
,00
1,2
4,86
6-0
,197
0,98
Rode’s Report 2020:2 87 Industrial rentals and vacancies
Tab
le 7
.2 (
con
tin
ued
) M
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in q
uar
ter
20
20
:2
(R/m
² p
.m.;
gro
ss le
ase;
exc
l. V
AT)
A
rea
size
leas
ed in
m²
Vac
ancy
ab
r²
25
0
50
0
1.0
00
2
.50
0
5.0
00
Pa
calts
dorp
Ind
ustr
ia
36,6
735
,33
32,3
327
,33
25,3
31,
2 4,
361
-0,1
320,
97G
eorg
e 4
0,7
83
7,2
23
2,4
42
6,4
42
4,8
91
,3
Pie
term
arit
zbu
rg
Will
owto
n 40
,00
42,5
039
,00
35,0
030
,00
3,5
4,32
8-0
,102
0,81
Mko
nden
i/Sho
rtts
Ret
reat
35
,00
35,0
034
,00
30,0
026
,50
4,5
4,12
5-0
,095
0,87
Cam
ps D
rift
50
,00
50,0
047
,50
40,0
035
,00
6,0
4,65
8-0
,125
0,90
Piet
erm
aritz
burg
Cen
tral
70
,00
65,0
062
,50
57,5
060
,00
4,5
4,53
8-0
,057
0,82
Ros
edal
e/Alla
ndal
e -
--
--
--
--
How
ick
--
--
--
--
-P
iete
rmar
itzb
urg
5
3,0
04
8,1
34
5,7
54
0,6
33
4,7
14
,6
Low
er U
mfo
lozi
Em
pang
eni
--
--
-7,
0-
--
Low
er U
mfo
lozi
-
--
--
7,0
W
ind
hoe
k N
orth
60
,00
60,0
055
,00
50,0
050
,00
3,0
4,51
2-0
,073
0,92
Lafr
enz
60,0
060
,00
55,0
050
,00
50,0
03,
0 4,
512
-0,0
730,
92Sou
th
80,0
080
,00
65,0
065
,00
55,0
03,
0 5,
097
-0,1
250,
89Pr
ospe
rita
65
,00
65,0
055
,00
55,0
048
,00
3,0
4,75
3-0
,101
0,89
Win
dh
oek
66
,25
66
,25
57
,50
55
,00
50
,75
3,0
Rode’s Report 2020:2 88 Industrial rentals and vacancies
Tab
le 7
.3
Sta
nd
ard
dev
iati
on f
rom
mea
n p
rim
e in
du
stri
al m
arke
t re
nta
ls
as in
20
20
:2
Are
a si
ze l
ease
d in
m²
Pan
ellis
t co
des
2
50
5
00
1
.00
0
2.5
00
5
.00
0
Cen
tral
Wit
wat
ersr
and
Cam
brid
ge P
ark
0,65
2,
81
2,00
1,
63
2,87
CBR,R
EA,S
HP,
WP
Wyn
berg
Pro
per
3,89
1,
81
3,48
3,
57
3,43
AP,
CBR,C
R,G
B,O
S,R
ES,S
HP,
WP
Str
ijdom
Par
k 2,
05
3,57
6,
02
4,42
2,
36
AP,
AV,C
BR,C
PS,C
R,G
I,O
S,S
HP,
WH
F,W
P Kya
San
d W
est
1,75
2,
13
2,47
3,
39
3,70
AP,
AV,C
BR,C
PS,C
R,O
S,S
HP,
WH
F Kya
San
d Ea
st
- -
- -
- CPS
La
nser
ia C
orpo
rate
Est
ate
- -
- -
-
Cos
mo
Bus
ines
s Pa
rk
- -
- -
- CPS
M
osty
n Pa
rk
- -
- -
-
Cla
yvill
e/O
lifan
tsfo
ntei
n4,
58
2,42
2,
64
1,67
1,
00
AP,
CBR,G
I,RK,S
HP
Chl
oork
op1,
94
0,37
3,
34
6,02
4,
47
AP,
CBR,C
PS,O
S,P
PR,S
HP,
WH
F Am
alga
m4,
00
2,36
2,
16
1,50
1,
70
AP,
CBR,R
ESCro
wn
Min
es
2,12
1,
41
2,59
3,
77
6,34
AP,
AV,C
BR,F
AS
Indu
stria
2,17
0,
00
0,00
3,
64
3,41
AP,
AV,C
BR,C
R,R
ES
Boo
ysen
s/Boo
ysen
s Res
erve
/Oph
irto
n 2,
36
2,45
4,
42
2,25
1,
43
AP,
CBR,F
AS,
GI
Vill
age
Mai
n/Vill
age
Dee
p/N
ew
Cen
tre
3,50
2,
50
3,00
4,
00
4,00
AP,
CBR
Ben
rose
3,77
3,
77
1,89
2,
36
2,83
AP,
CBR,R
OSte
eled
ale/
Elec
tron
/Tul
isa
Park
6,
34
4,66
3,
54
3,50
4,
02
AP,
CBR,G
B,R
O
Aer
oton
2,05
2,
05
2,06
0,
80
1,26
AP,
AV,C
BR,G
B,W
HF
Dev
land
/Nan
cefie
ld0,
00
0,00
0,
00
0,00
0,
00
AP,
CBR
Cle
vela
nd/H
erio
tdal
e2,
62
2,62
2,
94
3,40
3,
86
AV,C
BR,R
O
New
land
s/M
artin
dale
2,50
5,
00
7,50
7,
50
5,00
AP,
CBR
Kew
/Wyn
berg
Eas
t 7,
97
6,23
5,
40
9,04
2,
87
AP,
CBR,C
R,G
B,O
S,R
ES,W
P Bra
mle
y Vie
w/L
omba
rdy
Wes
t 5,
00
5,00
2,
50
2,50
2,
50
AP,
CBR
Mar
lbor
o
7,50
7,
50
2,50
2,
50
2,50
AP,
CBR,G
I H
alfw
ay H
ouse
: hi
-tec
h st
rip
4,17
2,
87
2,87
5,
01
6,18
AP,
CBR,C
R,G
I,O
S,R
K,S
HP,
SW
I,W
P
Rode’s Report 2020:2 89 Industrial rentals and vacancies
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
H
alfw
ay H
ouse
: Ric
hard
s D
rive
1,
87
2,83
3,
16
2,68
2,
99
AP,
CBR,C
PS,C
R,G
I,O
S,R
K,S
HP,
SW
I,W
P Cor
pora
te P
ark
(Mid
rand
) -
- -
- -
Com
mer
cia
1,92
2,
28
0,00
0,
00
0,83
AP,
CBR,S
HP,
SW
I Kra
mer
ville
/Eas
tgat
e Ex
t12
& E
xt13
2,
62
9,33
5,
59
5,45
4,
71
AP,
CBR,C
PS,G
B,O
S,SH
P,W
P Li
nbro
Par
k 3,
18
3,97
2,
94
5,81
7,
37
AP,
AV,C
BR,C
PS,C
R,G
B,G
I,M
R,O
S,P
PR,
RES
,SH
P,SW
I,W
P W
esco
Par
k/Ea
stga
te E
xt 3
, Ex
t 11
, Ex
t 6,
Ext
8/M
arlb
oro
Nor
th (
New
) 0,
50
0,82
1,
25
2,16
1,
89
AP,
CBR,S
HP
City
Dee
p 1,
67
1,39
2,
27
3,07
2,
64
AP,
CBR,G
B,P
PR,R
O
Nor
th R
idin
g/H
oogl
and
2,06
1,
69
0,71
2,
07
3,55
AP,
AV,C
BR,C
PS,S
HP,
SW
I,W
HF,
WP
Sam
rand
Cen
turion
4,
24
2,36
2,
11
5,47
3,
39
AP,
CBR,C
PS,C
R,R
ES,R
K,S
HP,
SW
I Bar
bequ
e D
owns
1,
94
2,87
3,
10
3,03
2,
49
AP,
CBR,R
K,S
HP,
SW
I,W
P Sel
by E
xt 1
2/13
/15/
19/2
0/24
/City
W
est
--
--
- CBR
Sel
by E
xt 5
/10/
14/1
8 0,
00
0,50
1,
50
0,50
1,
50
AP,
CBR
Sel
by E
xt 1
1 1,
00
1,00
3,
00
1,50
4,
00
AP,
CBR
Sel
by E
xt 3
/4/6
1,
00
1,00
3,
00
1,50
4,
00
AP,
CBR
Den
ver
(Old
) 3,
30
3,30
3,
27
3,27
2,
94
AP,
CBR,R
O
Den
ver
(New
) 1,
09
1,30
1,
48
2,06
2,
28
AP,
AV,C
BR,R
O
Kya
lam
i Bus
ines
s Pa
rk
1,66
1,
30
2,12
2,
12
2,45
AP,
CBR,R
K,S
WI,
WP
Reu
ven
0,50
0,
50
0,50
0,
50
0,50
AP,
CBR
Sel
by (
Old
)/Sel
by E
xt2/
Park
Cen
tral
1,
00
0,50
0,
00
1,50
2,
00
AP,
CBR
Rob
erts
ham
1,50
2,
00
2,00
1,
50
0,00
AP,
CBR
Ford
sbur
g/N
ewto
wn
0,00
1,
50
1,50
3,
00
2,50
AP,
AV
Wat
erfa
ll 3,
30
3,30
3,
34
3,34
5,
31
AP,
CBR,R
ES,R
K,S
WI
Lord
s Vie
w-
--
--
Wes
t R
and
Lea
Gle
n 0,
50
1,00
1,
00
1,50
1,
41
AP,
CPS
,FAS,S
HP
Hon
eyde
w X
19,
20,
21 &
22
7,69
7,
69
7,91
8,
78
10,1
8 AP,
AV,F
AS,S
HP,
WH
F
Rode’s Report 2020:2 90 Industrial rentals and vacancies
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2.5
00
5.0
00
Sto
rmill
3,40
3,
11
3,64
4,
53
5,75
AP,
AV,C
PS,C
R,F
AS,
SH
P,W
HF
Cha
mdo
r2,
56
3,42
5,
12
3,54
4,
69
AP,
CPS
,FAS,
RES
,WH
FFa
ctor
ia
- -
- -
- AP
Kru
gers
dorp
: D
elpo
rton
-
- -
- -
AP
Ran
dfon
tein
: Aur
eus
- -
- -
- AP
Bol
toni
a-
- -
- -
AP
Roo
depo
ort:
Tec
hnik
on/M
anuf
acta
5,
00
2,50
3,
50
1,00
3,
30
AP,
CPS
,WH
F In
dust
ria
Nor
th
1,00
1,
00
3,50
6,
00
5,50
AP,
AV
Rob
ertv
ille
1,89
1,
49
2,23
2,
97
2,55
AP,
AV,C
PS,C
R,F
AS,G
I,RES
,SH
P,W
HF
Lase
rpar
k 3,
83
2,20
5,
03
1,73
2,
11
AP,
AV,C
PS,C
R,R
EA,S
HP,
WH
F,W
P Ea
st R
and
El
ands
font
ein
5,29
3,
59
3,22
1,
94
2,20
AP,
CBR,C
G,C
PS,G
B,M
R,O
S,P
PR,S
HP,
WH
F Tu
nney
/Gre
enhi
lls3,
47
3,22
4,
69
3,71
3,
76
AP,
AV,C
BR,C
G,C
PS,G
B,M
R,S
HP,
SW
I,W
HF
Hen
ville
3,24
3,
34
3,08
2,
95
2,86
AP,
CBR,C
G,S
HP,
WH
F H
ughe
s
2,87
2,
56
2,00
3,
38
2,50
AP,
CBR,C
G,G
B,M
R,P
PR,W
HF
Bar
tlett
s
6,26
6,
26
- 5,
00
5,00
AP,
CBR,M
R,W
HF
Lilia
nton
6,
25
6,25
-
- 19
,47
AP,
CBR,C
G,M
R
Mea
dow
broo
k/W
ilbar
t2,
41
3,33
4,
45
2,90
3,
91
AP,
CBR,C
G,M
R,P
PR,R
ES,R
O,S
HP,
SW
I,
WH
F Sun
nyro
ck2,
69
2,82
2,
48
3,37
2,
12
AP,
AV,C
BR,C
G,G
B,M
R,O
S,P
PR,R
ES,R
O,
SH
P,SW
I,W
HF
Rus
tivia
/Act
ivia
Par
k 1,
91
1,88
2,
03
1,96
1,
90
AP,
CBR,C
G,M
R,P
PR,S
HP,
WH
F Ea
stle
igh
5,04
3,
19
2,36
1,
90
0,83
CBR,C
G,C
PS,P
PR,R
ES,S
HP,
SW
I,W
HF
Seb
enza
Ext
14
2,36
2,
36
4,37
6,
66
3,20
AP,
CBR,C
G,C
PS,G
B,R
ES,S
HP,
SW
I Spa
rtan
Ext
16
(Seb
enza
Lin
k) +
Ext
1,
3,
7
4,95
3,
46
2,87
3,
33
3,84
AP,
CG
,CR,G
B,S
HP,
SW
I,W
HF
Isan
do3,
58
4,77
2,
55
3,29
3,
54
AP,
AV,C
BR,C
G,C
PS,C
R,G
B,M
R,R
ES,R
O,
SH
P,SW
I,W
HF
Isan
do 3
2,
67
2,22
4,
37
2,87
2,
72
AP,
AV,C
BR,C
G,C
R,M
R,R
O,S
HP,
SW
I,W
HF
Rode’s Report 2020:2 91 Industrial rentals and vacancies
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
²P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
Je
t Pa
rk
4,92
4,
03
4,48
4,
54
4,57
AP,
AV,C
BR,C
G,C
R,G
B,M
R,O
S,P
PR,R
ES,R
O,
SH
P,SW
I,W
HF
Alrod
e &
Xs
0,87
2,
61
1,72
2,
10
2,10
AP,
CBR,R
O,S
HP,
WH
F Alrod
e Sou
th
3,63
3,
26
4,31
5,
42
4,49
AP,
CBR,S
HP,
SW
I,W
HF
Alb
erto
n3,
40
1,41
0,
82
2,36
2,
05
CBR,S
HP,
WH
F Aer
opor
t/Spa
rtan
Ext
2
4,72
2,
82
2,47
3,
46
4,02
AP,
AV,C
BR,C
PS,M
R,R
ES,S
HP,
SW
I,W
HF
Del
ville
3,
30
2,65
1,
65
1,65
1,
25
AP,
CBR,P
PR,R
O
Roo
deko
p 1,
79
2,00
3,
19
3,42
2,
98
AP,
CBR,P
PR,R
ES,R
O,S
HP,
WH
F W
adev
ille:
Ind
ustr
ial z
onin
g 2,
14
1,12
1,
90
1,72
3,
30
AP,
CBR,C
PS,G
B,P
PR,S
HP,
WH
F Rou
te 2
4/M
eado
wda
le
4,37
4,
94
4,26
3,
33
4,86
AP,
AV,C
BR,G
B,P
PR,R
ES,R
O,S
HP,
SW
I,W
HF
Ger
mis
ton
S/I
ndus
trie
s E
3,10
3,
10
3,42
3,
42
4,10
AP,
CBR,P
PR,R
O,W
HF
Drieh
oek/
Indu
stries
W
4,20
4,
17
4,40
3,
25
4,92
AP,
CBR,C
PS,P
PR,R
O,W
HF
Kni
ghts
4,
04
4,04
2,
04
2,46
1,
84
AP,
CBR,P
PR,R
O
Spa
rtan
Pro
per
5,09
5,
30
4,59
4,
15
4,35
AP,
CBR,C
G,C
PS,M
R,P
PR,S
HP,
SW
I,W
HF
Foun
ders
Vie
w
3,50
3,
44
4,67
4,
87
4,12
AP,
CBR,C
G,C
PS,P
PR,S
HP,
SW
I Lo
ngm
eado
w
3,09
2,
81
0,35
1,
45
3,75
AP,
AV,C
BR,C
G,C
PS,C
R,M
R,P
PR,R
ES,R
O,S
HP,
SW
I Po
mon
a/Kem
pton
Par
k 2,
92
2,98
4,
45
5,92
6,
00
AP,
AV,C
BR,C
G,C
R,M
R,P
PR,R
O,S
HP,
SW
I,W
HF
Gos
fort
h Pa
rk
2,90
2,
90
2,45
2,
56
2,91
AP,
AV,C
BR,C
G,C
PS,G
B,M
R,P
PR,R
O,S
HP
S&
J In
dust
rial
Est
ate
3,30
3,
30
2,36
2,
50
3,32
G
B,M
R,P
PR,R
O,W
HF
Far
East
Ran
d
Bok
sbur
g N
orth
& E
ast
2,22
2,
63
2,21
3,
40
2,05
AP,
AV,M
R,P
PR,R
ES,R
O,S
HP,
SW
I,W
HF
Ben
oni S
outh
2,
94
0,87
1,
25
1,70
0,
94
AP,
RES
,RO
,SH
P,W
HF
New
Era
/Vul
cani
a 1,
50
1,50
1,
50
1,50
1,
50
AP,
RO
N
uffie
ld
1,50
3,
00
4,00
4,
50
5,00
AP,
RO
Fu
lcru
m-
--
--
AP
Ape
x 2,
05
4,15
3,
43
5,55
3,
42
AP,
MR,R
ES,R
O,W
HF
Labo
re B
rakp
an-
--
--
AP
Mor
ehill
Ext
8 B
enon
i 2,
16
3,30
5,
19
4,92
3,
77
AP,
RO
,WH
F
Rode’s Report 2020:2 92 Industrial r ntals and a an i s
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
P
reto
ria
Cha
rlot
te M
axek
e 2,
50
2,50
4,
00
3,00
3,
00
AP,
AV
Pret
oria
Ind
ustr
ial T
owns
hip
3,00
5,
00
5,50
2,
50
0,00
AP,
AV
Koe
does
poor
t5,
45
5,65
3,
41
5,02
5,
63
AP,
AV,H
N,W
HF
Wal
tloo/
Des
patc
h0,
87
2,50
3,
64
6,48
6,
34
AP,
AV,H
N,W
HF
Silv
erto
n/Silv
erto
ndal
e4,
35
2,89
0,
47
2,04
6,
25
AP,
AV,H
N,W
HF
Sam
cor
Park
0,
00
2,50
0,
00
2,50
3,
00
AP,
AV
Sun
derlan
d Rid
ge
0,00
0,
00
0,00
2,
50
0,50
AP,
AV
Her
man
stad
2,50
2,
40
3,40
2,
40
2,50
AP,
AV
Kirkn
ey2,
50
0,00
0,
00
1,00
0,
50AP,
AV
Hen
nops
park
X15
& X
7 4,
08
0,09
0,
00
4,22
4,
08
AP,
AV,W
HF
Gat
eway
3,81
4,
01
5,40
7,
07
7,40
AP,
AV,M
AS,
WH
F Ly
ttel
ton
Man
or X
4/X6
7,50
7,
50
5,00
5,
00
7,50
AP,
AV
Pret
oria
Nor
th
2,50
5,
00
0,00
0,
00
2,50
AP,
AV
Silv
erto
ndal
e X1
4,08
2,
04
0,00
2,
04
6,24
AP,
AV,W
HF
Kle
rkso
ord
0,
55
1,10
1,
00
1,10
1,
00
AP,
AV
Ros
slyn
1,
90
2,50
2,
50
0,10
0,
05
AP,
AV
Cen
turion
2,
26
0,47
0,
00
4,25
4,
08
AP,
AV,W
HF
Pol
okw
ane
Lebo
wak
gom
o-
- -
--
Sup
erbi
a-
- -
- -
MO
Indu
stria
- -
- -
-M
OLa
dine
- 0,
00
- -
-ES
,MO
Futu
ra-
- -
--
MO
Labo
ria
- 0,
00
- 15
,00
-M
O,N
ETM
agna
Via
2,
50
0,00
-
12,5
0 -
ES,M
O,N
ET
Ses
hego
- -
- -
-
Rode’s Report 2020:2 93 Industrial r ntals and a an i s
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
N
elsp
ruit
Nel
spru
it Ea
st
0,93
2,
05
1,30
0,
00
- KEL
,MPV
,ORI,
PG,P
M,P
PS
Nel
spru
it W
est
0,00
0,
93
0,93
0,
93
0,00
KEL
,MPV
,ORI,
PG,P
M,P
PS
Roc
ky’s
Drift
0,
37
0,00
0,
00
0,00
- KEL
,MPV
,ORI,
PG,P
M,P
PSRiv
ersi
de P
ark
1,86
1,
86
0,93
0,
00
0,00
KEL
,MPV
,ORI,
PG,P
M,P
PS
Du
rban
Spr
ingf
ield
Par
k 6,
99
6,99
5,
41
6,74
5,
00
BO
N,C
A,P
C,S
WI
May
ville
--
--
-Ph
oeni
x-
--
2,50
2,
50
CA,P
CChr
is H
ani R
d (N
orth
Coa
st/B
riar
dene
) 6,
24
4,25
2,
04
2,87
1,
41
BO
N,P
C,S
WI,
ZZ
Briar
dene
Ind
ustr
ial P
ark
5,45
3,
70
3,70
5,
31
4,11
BO
N,C
A,P
C,S
WI
Um
geni
Rd/
Sta
mfo
rd H
ill-
--
--
PCU
mbi
lo/S
ydne
y Rd/
Mag
waz
a M
apha
lala
St
(Gal
e)
--
--
- PC
,ZZ
Jaco
bs
2,50
4,
71
4,71
4,
00
4,00
JU
S,P
C,S
WI
Mob
eni
2,50
0,
00
4,15
4,
08
5,00
JU
S,P
C,S
WI,
ZZ
Pros
pect
on
5,00
6,
50
2,36
2,
36
2,36
CA,J
US,P
C,S
WI
Itha
la I
ndus
tria
l Est
ate
10,2
5 10
,25
10,2
5 10
,25
12,7
5 PC
,SW
I Pi
neto
wn
Cen
tral
2,
50
0,00
0,
00
0,00
-
PC,S
WI,
ZZ
New
Ger
man
y 1,
50
1,41
1,
50
0,00
0,
00
PC,S
WI,
ZZ
Isip
ingo
0,
00
2,50
2,
36
- -
JUS,S
WI,
ZZ
Ros
sbur
gh/S
outh
Coa
st R
d
- -
- 2,
50
2,50
PC
,SW
I Ed
win
Sw
ales
Drive
--
--
- SW
IG
len
Ani
l 5,
41
5,41
3,
70
4,80
4,
46
BO
N,C
A,P
C,S
WI
Felix
Dla
min
i Rd
(Brick
field
)-
--
--
Ver
ulam
--
--
-Can
elan
ds-
--
--
Rode’s Report 2020:2 94 Industrial r ntals and a an i s
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
To
ngaa
t-
--
--
PCN
ew W
estm
ead/
Mah
ogan
y 1,
00
1,00
1,
00
0,50
0,
50
PC,S
WI
Wes
tmea
d 0,
00
0,00
0,
00
0,00
-
PC,S
WI,
ZZ
Mar
iann
Par
k/Sou
thm
ead
--
--
- PC
Max
mea
d 0,
00
1,50
1,
50
2,50
2,
50
PC,S
WI
Rin
groa
d In
dust
rial
Par
k-
--
--
PCAvo
ca/R
ed H
ill/N
orth
gate
7,
50
7,50
5,
00
5,00
2,
50
BO
N,P
C
Falc
on P
ark
--
--
- PC
Riv
erho
rse
Val
ley
Bus
ines
s Es
tate
4,
92
4,27
3,
08
3,54
2,
50
BO
N,C
A,P
C,S
WI
Mou
nt E
dgec
ombe
4,
21
4,33
6,
06
7,40
5,
59
BO
N,C
A,P
C,S
WI
Um
bogi
ntw
ini/
Sou
thga
te6,
50
5,00
5,
00
2,50
2,
50
JUS,P
C,S
WI
Sou
thga
te I
ndus
tria
l Par
k 5,
31
4,19
4,
08
2,50
2,
50
JUS,P
C,S
WI
Um
geni
Par
k 0,
00
0,00
0,
00
1,00
1,
00
CA,P
C
Ham
mer
sdal
e 4,
00
4,00
4,
32
4,32
4,
19
PC,S
H,S
WI
Cat
o Rid
ge
- -
- 2,
50
16,0
0 PC
,SH
Bal
lito
--
--
-D
ube
Trad
epor
t-
--
--
Cor
nubi
a
6,40
2,
07
1,08
2,
86
3,07
BO
N,C
A,P
C,S
WI,
ZZ
Lad
ysm
ith
Ezak
heni
/Pie
ters
--
--
-D
ansk
raal
--
--
- D
EN
ambi
ti-
--
--
DE
Col
enso
--
--
-C
ape
Pen
insu
laVik
ing
Plac
e 2,
36
6,24
6,
24
1,00
-
AN
,DN
,SW
I G
losd
erry
5,
00
1,25
1,
25
2,50
-
AP,
IKP,
SW
I
Rode’s Report 2020:2 95 Industrial r ntals and a an i s
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
Paar
den
Eila
nd/M
etro
4,
20
3,76
4,
96
4,91
M
onta
gue
Gar
dens
3,
26
4,01
4,
29
4,51
4,
95
AN
,AP,
AS,A
X,C
R,C
RE,
SW
I,W
HF
5,92
AN
,AP,
AS,A
X,C
R,C
RE,
CSP,
DN
,DW
,GB,SWI,
Mar
coni
Bea
m
6,56
6,
86
6,33
6,
75
Kill
arne
y G
arde
ns
5,65
6,
27
4,04
5,
00
Rac
ing
Park
2,
50
3,77
6,
23
4,27
WH
F7,
39
AN
,AP,
AX,C
R,C
RE,
DN
,GB,S
WI,
WH
F 4,
88
AN
,AP,
AS,A
X,C
R,C
RE,
DN
,GB,S
WI,
WH
F 2,
36
AP,
AX,C
R,D
N,G
B,W
HF
Atla
ntis
- -
- 2,
50
-CR,S
WI
Woo
dsto
ck/S
alt
Riv
er/O
bser
vato
ry
2,70
2,
78
1,05
0,
94
1,25
AN
,AS,C
R,S
CM
Ath
lone
1 &
2
- -
- -
- SW
I La
nsdo
wne
Ner
issa
-
- 5,
00
- -
AP,
IKP
San
d In
dust
ria
- -
--
-O
tter
y H
illst
ar0,
00
2,36
--
- AN
,AP,
CR
Ott
ery
Sun
set
- -
--
- AP
Die
p Riv
er
2,36
5,
45
4,39
-
- AN
,CR,D
W,I
KP,
SW
I El
finda
le-
--
- -
IKP
Mon
woo
d/Ph
ilipp
i-
--
- -
Ret
reat
/Ste
enbe
rg-
0,00
--
- AN
,CR,I
KP
Cap
rico
rn P
ark
2,17
3,
87
5,59
6,
56
7,07
AN
,AS,C
R,I
KP,
SWI
Mai
tland
5,
08
6,78
7,
45
8,83
5,
77
AN
,AP,
AS,A
X,C
R,C
SP,D
N,S
CM
,SW
I,W
HF
Nda
beni
2,
49
3,44
5,
62
5,70
5,
45
AN
,AP,
AS,A
X,C
R,C
RE,
CSP,
SW
I Ep
ping
1 &
2
5,00
5,
96
5,42
5,
49
7,31
AN
,AP,
AS,C
R,C
SP,
DN
,DW
,GAM
,SCM
,SW
I,W
HF
WP
Park
6,
24
6,24
6,
24
6,24
2,
50
AN
,DN
,SW
I El
sies
Riv
er (
excl
. Cen
tral
Par
k)
6,25
5,
75
3,75
4,
25
3,50
AN
,AP,
CR
Paro
w B
eaco
nval
e 8,
29
7,48
5,
83
7,40
6,
24
AN
,AP,
CR,D
N,S
WI
Tyge
rber
g Bus
ines
s Pa
rk
7,50
10
,00
12,5
0 7,
50
5,00
AN
,AP,
DN
Pa
row
Ind
ustr
ia
5,53
5,
53
6,48
5,
10
6,65
AN
,AP,
AS,C
R,D
N,P
F Pa
row
Eas
t 8,
16
8,50
6,
24
5,00
7,
50
AN
,AP,
DN
Rode’s Report 2020:2 96 Industrial r ntals and a an i s
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
Bel
lvill
e O
akda
le
2,50
2,
50
2,50
2,
50
- D
N,P
F Bel
lvill
e Stik
land
/Kay
mor
8,
72
8,86
8,
50
8,47
10
,57
AN
,AS,C
R,D
N,P
F,W
D,W
HF
Bel
lvill
e Tr
iang
le
3,74
4,
00
3,16
3,
74
3,77
AN
,AS,D
N,P
F,W
D,W
HF
Bel
lvill
e Sou
th/S
acks
Circl
e 9,
09
8,48
9,
01
10,3
3 11
,54
AN
,AS,C
R,C
SP,
DN
,PF,
WH
F Kra
aifo
ntei
n 3,
30
5,56
5,
00
4,08
2,
36
AN
,AS,C
R,D
N
Bra
cken
fell
Indu
stria
6,12
6,
12
7,50
8,
66
9,43
AN
,CR,D
N,P
F,W
D,W
HF
Ever
ite B
rack
enfe
ll 4,
71
6,24
6,
65
6,24
5,
00
AN
,CR,D
N,W
HF
Kui
ls R
iver
0,
00
0,00
2,
50
0,00
-
AN
,CR,D
N
Bla
ckhe
ath
2,07
2,
27
5,34
4,
83
2,90
AN
,AS,C
R,C
SP,
DN
,PF,
WD
,WH
F Sax
enbu
rg I
ndus
tria
l Par
k 4,
08
3,30
3,
54
3,42
-
AN
,CR,C
RE,
PF
Oka
vang
o 5,
45
7,48
6,
12
4,71
0,
00
AN
,CR,D
N,P
F,W
D,W
HF
Bra
cken
gate
/Ico
n Bus
ines
s Pa
rk
7,50
9,
35
7,40
7,
35
0,00
AN
,CR,C
SP,
DN
,HO
U,P
F,W
D,W
HF
Paar
l 6,
24
2,17
2,
50
8,25
-
AP,
CR,P
RU
,SF
Wel
lingt
on
2,50
8,
50
3,50
-
- AP,
CR,S
F Con
term
ansk
loof
0,
00
0,00
2,
94
2,59
6,
00
AP,
CR,C
SP,
WH
F Riv
erga
te
2,17
3,
46
4,95
4,
90
7,36
AN
,AP,
AS,A
X,C
R,C
RE,
SW
I,W
HF
Airpo
rt I
nd (
nort
h of
sew
erag
e fa
rm)
1,33
1,
71
2,78
3,
00
3,89
AIR
,AN
,CR,S
CM
,WH
F Airpo
rt I
nd (
wes
t of
Bor
cher
ds Q
uarr
y)
3,40
4,
12
3,27
5,
25
5,21
AIR
,AN
,CR,C
SP,
DW
,SCM
Airpo
rt I
nd (
east
of
Bor
cher
ds Q
uarr
y)
2,86
3,
38
4,13
2,
09
2,70
AIR
,AN
,CSP,
SCM
D
urba
nvill
e In
dust
rial
Par
k 4,
15
2,50
2,
36
4,71
0,
00
CSP,
PF,S
WI,
WH
F N
orth
gate
Ind
ustr
ial P
ark
21,2
1 21
,60
18,8
3 19
,74
19,1
6 AS,G
B,S
WI,
WH
F H
eld
erb
erg
The
Inte
rcha
nge
--
--
-H
elde
rber
g In
dust
rial
Par
k/Bro
adla
nds
--
--
-G
ants
--
--
-Som
erse
t Bus
ines
s Pa
rk-
--
--
Rode’s Report 2020:2 97 Industrial r ntals and a an i s
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
G
eorg
es P
ark/
Onv
erw
acht
--
--
-M
ansf
ield
--
--
-Fi
rgro
ve I
ndus
tria
l Est
ate
--
--
- AN
Str
and
Hal
t-
--
--
Ste
llen
bos
ch
Plan
kenb
rug
--
--
-D
evon
Val
ley
--
--
-Te
nant
ville
--
--
-Kla
pmut
s-
--
--
Por
t El
izab
eth
D
eal P
arty
4,
33
6,63
5,
61
4,21
4,
85
ARN
,BD
,BR,S
UM
,TR
Nor
th E
nd
4,47
4,
47
4,88
3,
74
5,57
ARN
,BD
,BR,S
UM
,TR
Kor
sten
/Nea
ve/S
idw
ell/
Syd
enha
m4,
00
3,74
4,
58
4,65
5,
61
ARN
,BD
,BR,S
UM
,TR
Sou
th E
nd W
alm
er
6,24
6,
24
4,25
0,
00
0,00
ARN
,BR,S
UM
U
itenh
age:
Vol
ksw
agen
are
a/N
MBLP
4,
15
4,15
3,
16
3,26
3,
74
ARN
,BD
,BR,S
UM
,TR
Uite
nhag
e: H
ella
/Kru
isrivi
er
2,04
2,
07
1,91
1,
89
3,32
ARN
,BD
,BR,S
UM
,TR
Str
uand
ale
2,36
2,
36
4,15
4,
41
6,63
ARN
,BD
,BR,S
UM
,TR
Mar
kman
Tow
nshi
p 1,
18
1,18
2,
52
2,73
2,
92
ARN
,BD
,BR,S
UM
,TR
Pers
ever
ance
3,
70
3,70
3,
53
4,14
4,
47
ARN
,BD
,BR,S
UM
,TR
Wal
mer
3,
25
3,25
6,
22
5,59
2,
50
ARN
,BD
,BR,S
UM
,TR
Gre
enbu
shes
6,
24
4,46
6,
95
8,00
8,
00
ARN
,BD
,BR,S
UM
,TR
Fairvi
ew
7,50
2,
50
2,45
4,
33
8,16
ARN
,BD
,BR,S
UM
,TR
East
Lon
don
Arc
adia
--
--
- CAP,
CH
RG
atel
y/W
oodb
rook
--
--
3,00
CAP,
CH
RW
ilson
ia-
--
--
CH
RBra
elyn
--
--
- CH
R
Rode’s Report 2020:2 98 Industrial r ntals and a an i s
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
N
orth
end
--
--
- CH
R
Chi
selh
urst
- -
- -
-CH
RM
eisi
es H
alt
--
--
- CH
R
Bea
con
Bay
Ind
ustr
ial
--
--
- CH
R
IDZ
- -
- -
-W
est
Ban
k In
dust
rial
Are
a -
--
--
CH
R
Blo
emfo
nte
in
Hilt
on
6,74
6,
37
5,19
6,
53
4,50
BR,E
D,E
K,E
QV,N
R,P
LA
East
End
6,
62
4,87
3,
71
2,69
4,
50
BR,E
D,E
K,E
QV,N
R,P
LA
Har
vey
Roa
d 6,
34
6,62
6,
85
3,64
3,
56
BR,E
D,E
K,E
QV,N
R
Old
Ind
ustr
ial
0,00
4,
09
4,40
5,
52
5,76
BR,E
D,E
K,E
QV,N
R,P
LA
Ham
ilton
: M
ill S
t 3,
86
4,40
2,
14
1,50
3,
56
BR,E
D,E
K,E
QV,N
R
Ham
ilton
: G
Lub
be S
t 4,
32
4,50
1,
66
1,41
2,
96
BR,E
D,E
K,E
QV
Esto
ire
4,
79
3,10
3,
49
5,12
6,
83
BR,E
D,E
K,E
QV,N
R
Qua
ggaf
onte
in-
- 9,
00
9,50
-
BR,E
QV
Geo
rge
Geo
rge
Cen
tral
2,
05
2,05
2,
36
3,30
4,
92
BVF,
GRV,M
UL
Tam
sui I
ndus
tria
2,
36
2,94
2,
36
2,62
4,
08
BVF,
GRV,
MU
L Pa
calts
dorp
Ind
ustr
ia
4,71
5,
25
3,09
2,
05
3,40
BVF,
GRV,M
UL
Pie
term
arit
zbu
rg
Will
owto
n
- 2,
50
1,00
0,
00
0,00
D
OR,H
N
Mko
nden
i/Sho
rtts
Ret
reat
-
0,00
1,
00
0,00
1,
50
DO
R,H
N
Cam
psdr
ift-
0,00
2,
50
0,00
0,
00D
OR,H
NPi
eter
mar
itzbu
rg C
entr
al
0,00
0,
00
2,50
2,
50
- D
OR,H
N
Ros
edal
e/Alla
ndal
e
- -
- -
-
How
ick
-
- -
- -
Rode’s Report 2020:2 99 Industrial r ntals and a an i s
Tab
le 7
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tion
fro
m m
ean
pri
me
ind
ust
rial
mar
ket
ren
tals
as
in 2
02
0:2
A
rea
size
lea
sed
in m
² P
anel
list
cod
es
25
0
50
0
1.0
00
2
.50
0
5.0
00
Lo
wer
Um
folo
zi
Empa
ngen
i-
--
--
FOW
ind
hoe
k N
orth
--
--
- TE
Lafr
enz
--
--
- TE
Sou
th-
--
--
TEPr
ospe
rita
--
--
- TE
Rode’s Report 2020:2 100 Industrial r ntals and a an i s
Rode’s Report 2020:2 101 Industrial rentals and vacancies
Notes to the industrial rental tables
1. The rentals are the achievable or market rates for the quarter shown in the table heading,and these apply to industrial and warehouse space for the area sizes indicated. The rentalsare the means (averages) of the rates as per our panels of experts in the various cities.
2. The rental rates assume gross leases, market escalation rates and leases of 3 to 5 years.
3. In terms of a gross lease, the tenant in a stand-alone building typically pays for only hisutilities, like refuse removal, water, sewerage and electricity, as well as internal maintenanceand maybe increases in rates and taxes. He provides and pays for his own security. All otherexpenses are for the account of the landlord. In a park, the tenant pays, in addition to hisgross rental, his pro rata share of security costs, security lighting and landscaping.
4. The rental rates also apply to the office portion, where this is less than 10% of the totalbuilding area. This means we quote ‘through rates’. (See Glossary – Annexure 1.) For largeroffice portions, the office rental is, as a rule of thumb, about 150% of the industrial rentalrate.
5. Prime space is space that is easily lettable because it satisfies each of the following qualitycriteria:
a. Generally, in a good conditionb. Satisfactory macro-access (i.e. access to freeway)c. Satisfactory micro-access (i.e. from street to building)d. Proper loading facilitiese. Eaves >6,0 m (excluding micro-/mini-units)f. On ground levelg. Adequate three-phase electrical powerh. Wide clear span of trusses (few internal pillars)i. Roof insulation.
However, a building may have additional enhancements that could improve lettability by increasing the size of the potential tenant pool. Such enhancements could include sufficient office accommodation, adequate parking, sprinkler systems, masonry up to sill height, adequate floor loadings and sufficient yard space.
6. Secondary space is space that is not classifiable as prime because it does not satisfy all nineprerequisites for prime space listed above. Such space is typically old buildings or structuresthat have been haphazardly renovated. They would have poor access, too little yard space oroffice accommodation, inadequate goods lifts, no three-phase power and obsolete electricsand ablution facilities. Such space is often (but not exclusively) found in highly urbanisedareas.
7. Vacancy scale for industrial nodes. The vacancy levels are based on a scale of 1 to 9 as shownbelow:
1 2 3 4 5 6 7 8 9
Low Medium High
The scale should be interpreted as follows: - 1 = low- vacancy 2 = low vacancy
Rode’s Report 2020:2 102 Industrial rentals and vacancies
3 = low+ vacancy 4 = medium- vacancy 5 = medium vacancy 6 = medium+ vacancy 7 = high- vacancy 8 = high vacancy 9 = high+ vacancy
Where: low = <5% vacancy; medium = 5%-10% vacancy; high = >10% vacancy.
Please note that with effect from quarter 2 of 2019 we have changed the percentages corresponding with the vacancy factors. The previous percentages were:
low = <10% vacancy medium = 10-20% vacancy high = >20% vacancy.
8. For notes on how to use a regression equation to interpolate a rental rate, see Annexure 3.
Rode’s Report 2020:2 103 Industrial rentals and vacancies
Table 7.4 Predominant market escalation rates (%)
for industrial leases Average as in quarter 2020:2
5-year leases Mean SD N
Central Witwatersrand 7,86 0,31 11 West Rand 7,80 0,68 9 East Rand 8,15 0,38 12 Far East Rand 8,14 0,35 7 Pretoria 6,24 0,97 5Polokwane 6,00 0,82 3Nelspruit 6,83 0,37 6Durban 7,83 0,47 6Ladysmith 7,00 - 1 Lower Umfolozi 6,00 - 1Cape Peninsula 7,81 0,37 13 Helderberg 8,00 - 1 Stellenbosch - - - Port Elizabeth 7,25 0,25 4 East London 7,50 0,50 2 Bloemfontein 7,75 0,43 4George 7,33 0,47 3 Pietermaritzburg 7,50 0,50 2 Windhoek 8,00 - 1 Notes: 1. These are the averages of the predominant — i.e. most often achieved — market escalation rates as reported
by our panel of experts.
Rode’s Report 2020:2 104 Industrial rentals and vacancies
Table 7.5 Indicative operating expenses
for industrial buildings As in quarter 2020:2 in rands per m² per month
Stand-alone Park
R/m² SD N R/m² SD N Central Witwatersrand 11,28 3,01 10 12,00 1,80 11 West Rand 11,03 3,28 8 11,46 2,15 9 East Rand 9,05 2,62 10 10,57 2,27 11 Far East Rand 7,25 1,18 6 9,80 1,81 6 Pretoria 14,05 1,87 4 16,30 1,25 4 Polokwane 13,50 1,50 2 15,33 2,49 3 Nelspruit 11,00 0,00 6 12,00 0,00 6 Durban 18,67 4,50 3 25,00 5,00 2 Ladysmith - - - - - -Lower Umfolozi 12,06 - 1 - - -Cape Peninsula 12,83 1,43 3 12,15 2,95 5 Helderberg 10,00 - 1 12,00 - 1Stellenbosch - - - - - -Port Elizabeth 8,50 1,50 2 9,50 1,87 3 East London 20,00 - 1 25,00 - 1Bloemfontein 16,25 4,15 4 20,25 9,12 4 George 9,00 0,82 3 12,00 - 1 Pietermaritzburg 13,25 1,75 2 14,00 - 1 Windhoek 35,00 - 1 30,00 - 1Notes: The operating expenses are estimates for the past 12 months and are as per our expert panellists in the various cities. The following items are included: stand-alone buildings: rates and taxes and insurance (incl. Sasria) and park buildings: as above, plus security, security lighting, landscaping and management.
Our heartfelt thanks to the companies that contributed to the industrial-market survey. By clicking on their logos, you will learn more about these panellists.
Trust & Estate Co.
Rode’s Report 2020:2 107 Industrial stand values
Chapter 8: Industrial stand values
Stand-value growth slows Kobus Lamprecht
Stand or land values tend to track industrial rental trends, which implies that poor market-rental growth translates into very poor stand-value growth, and strong market-rental growth results in very strong stand-value growth.
The explanation for this leveraging effect of rentals on stand values is demonstrated in the pro forma viability study depicted in Table 8.1. It shows how land values are estimated using the residual approach. Note the sensitivity of stand values to changes in market rentals. The principle is the same as financial gearing.
Stand-value performance
In the second quarter of 2020, stand values grew nationally by a year-on-year rate of 1% in nominal terms, slowing from 4% y-o-y growth in the first quarter of 2020. This implies that stand values declined substantially in real terms after adjustment for building-cost inflation (BER BCI) of around 8%.
Regionally, the Central Witwatersrand recorded nominal stand-value growth of 6%, the best of the major industrial conurbations, albeit slower than the 9% growth in the first quarter. Stand values rose by 4% in the East Rand, while growing by 1% in both Durban and the Cape Peninsula. These growth rates are
calculated on smoothed data. Note also, the y-scale (vertical scale) of the graphs is in log form. The advantage of this is that we can now reliably compare the growth rates of the cities with each other. It so happens the cities’ stand values run virtually parallel, meaning their trends (growth rates) have been about the same since about 2009.
2,000
1,000
800700600500
400
300
200
10000 02 04 06 08 10 12 14 16 18 20
Cape PeninsulaDurbanEast RandCentral Witwatersrand
Nominal industrial stand values (1000-m² stands)
Smoothed
R/m
²(l
og s
cale
)
Source of data: Rode's Time Series
2,0001,8001,6001,4001,200
1,000
800
600
400
20000 02 04 06 08 10 12 14 16 18 20
Cape PeninsulaDurbanEast RandCentral Witwatersrand
Real industrial stand values (1000-m² stands)2016 rands
Smoothed
R/m
²(l
og s
cale
)
Source of data: Rode's Time Series
Deflated by BER BCI (2016=100)
Rode’s Report 2020:2 108 Industrial stand values
Table 8.1 Sensitivity of land value to changes in rent
A simplistic viability study Scenario
% change A B Market rent year 1 (net) R10 R12 +20% Capitalization rate 10% 10% MV on completion (net rent capitalized) R100 R120 +20% Construction costs -R60 -R60 +0% Profit margin* -R17 -R20 +18% Max value of land/stand† R23 R40 +74% * Assuming a constant profit margin of 20% of cost (i.e. construction costs and land costs)† Thus, land value is a residual item in this viability study: it is the maximum the developer can afford to pay for the land.
The remainder of this chapter includes market values for level, serviced stands in named industrial areas. The tables showing industrial land values contain regression parameters to allow readers to interpolate land values for area sizes other than those given in the tables. This is necessary because the relationship between price and square metreage is not linear.
Normally, the larger an industrial stand, the cheaper the stand value per square metre. However, we find this is not always the case,
most likely due to a shortage or an oversupply in certain size categories.
For more details on how to use these equations, refer to Annexure 3 (annexure page XII).
This concludes our chapter on industrial stand values.
PS: If you do not understand a term used in this article, please consult the Glossary (Annexure 1).
Tab
le 8
.2
Mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/
m²
excl
. V
AT)
A
rea
size
in
m²
Lan
d
avai
lab
ility
ab
r²
1.0
00
2
.00
0
5.0
00
1
0.0
00
C
entr
al W
itw
ater
sran
d
Cam
brid
ge P
ark
1.30
01.
300
1.50
01.
600
1,0
6,45
80,
099
0,92
Wyn
berg
Pro
per
1.65
01.
650
1.00
01.
000
1,0
9,27
3-0
,263
0,84
Str
ijdom
Par
k 1.
200
1.20
01.
200
1.20
01,
4 7,
090
--
Kya
San
d W
est
813
825
788
775
2,0
6,88
3-0
,025
0,76
Kya
San
d Ea
st-
--
--
--
-La
nser
ia C
orpo
rate
Est
ate
--
-1.
000
- -
--
Cos
mo
Bus
ines
s Pa
rk
--
700
--
--
-M
osty
n Pa
rk-
--
--
--
-Cla
yvill
e/O
lifan
tsfo
ntei
n65
067
565
061
51,
5 6,
685
-0,0
260,
48Chl
oork
op86
783
582
077
04,
4 7,
091
-0,0
470,
93Am
alga
m1.
200
1.20
01.
200
1.20
02,
0 7,
090
--
Cro
wn
Min
es
1.26
71.
267
1.20
01.
183
2,5
7,38
4-0
,034
0,91
Indu
stria
1.05
092
585
085
01,
0 7,
559
-0,0
920,
87Boo
ysen
s/Boo
ysen
s Res
erve
/Oph
irto
n -
--
-1,
0 -
--
Vill
age
Mai
n/Vill
age
Dee
p/N
ew C
entr
e -
--
-1,
0 -
--
Ben
rose
700
700
700
700
- 6,
551
--
Ste
eled
ale/
Elec
tron
/Tul
isa
Park
842
842
713
700
1,0
7,40
5-0
,094
0,88
Aer
oton
1.18
31.
183
1.11
71.
000
2,0
7,59
8-0
,072
0,84
Dev
land
/Nan
cefie
ld97
597
582
565
01,
5 8,
165
-0,1
770,
87Cle
vela
nd/H
erio
tdal
e75
075
075
072
51,
0 6,
714
-0,0
130,
58N
ewla
nds/
Mar
tinda
le-
--
-1,
0 -
--
Kew
/Wyn
berg
Eas
t 1.
000
1.00
0-
-1,
0 -
--
Bra
mle
y Vie
w/L
omba
rdy
Wes
t 50
050
0-
--
--
-M
arlb
oro
200
200
150
150
1,0
6,37
0-0
,151
0,84
Hal
fway
Hou
se:
hi-t
ech
strip
1.16
71.
167
1.01
71.
025
1,1
7,55
2-0
,069
0,82
Rode’s Report 2020:2 109 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Hal
fway
Hou
se:
Ric
hard
s D
rive
1.
067
1.06
793
391
71,
1 7,
520
-0,0
770,
88Cor
pora
te P
ark
(Mid
rand
) -
--
--
--
-Com
mer
cia
775
775
800
825
1,2
6,44
90,
028
0,90
Kra
mer
ville
/Eas
tgat
e Ex
t 12
& E
xt 1
31.
800
1.80
01.
800
1.40
01,
1 8,
192
-0,0
940,
58Li
nbro
Par
k 1.
488
1.48
81.
488
1.43
82,
3 7,
400
-0,0
130,
58W
esco
Par
k/Ea
stga
te E
xt 3
, Ex
t 11
, Ex
t 6,
Ex
t8/M
albo
ro N
orth
(N
ew)
2.50
02.
500
2.50
0-
1,0
--
-
City
Dee
p 1.
000
1.08
31.
083
1.08
31,
5 6,
726
0,03
00,
58N
orth
Rid
ing/
Hoo
glan
d 1.
093
1.07
51.
058
1.03
31,
5 7,
160
-0,0
240,
98Sam
rand
Cen
turion
1.
117
1.11
71.
100
1.10
02,
5 7,
074
-0,0
080,
84Bar
bequ
e D
owns
1.
067
1.06
71.
067
1.05
01,
0 7,
016
-0,0
060,
58Sel
by E
xt 1
2/13
/15/
19/2
0/24
/City
Wes
t 70
070
070
070
0-
6,55
1-
-Sel
by E
xt 5
/10/
14/1
8 -
--
845
1,0
--
-Sel
by E
xt 1
1 -
--
--
--
-Sel
by E
xt 3
/4/6
-
--
--
--
-D
enve
r (O
ld)
275
275
275
250
1,0
5,88
1-0
,036
0,58
Den
ver
(New
) 75
075
075
075
01,
0 6,
620
--
Kya
lam
i Bus
ines
s Pa
rk
--
--
1,0
--
-Reu
ven
--
--
1,0
--
-Sel
by (
Old
)/Sel
by E
xt 2
/Par
k Cen
tral
-
--
--
--
-Rob
erts
ham
--
--
1,0
--
-Fo
rdsb
urg/
New
tow
n-
--
--
--
-W
ater
fall
--
--
--
--
Lord
s Vie
w-
--
--
--
-C
entr
al W
itw
ater
sran
d
1.0
68
1.0
57
1.0
13
97
31
.6
Wes
t R
and
Le
a G
len
850
850
850
788
1,0
6,95
4-0
,028
0,58
Rode’s Report 2020:2 110 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Lan
d
avai
lab
ility
a b
r²
1
.00
0
2.0
00
5
.00
0
10
.00
0
Hon
eyde
w E
xt 1
9, 2
0, 2
1 &
22
975
950
938
790
1,6
7,46
5-0
,081
0,73
Sto
rmill
901
877
861
855
2,1
6,95
3-0
,022
0,94
Cha
mdo
r50
045
040
034
51,
0 7,
303
-0,1
570,
99Fa
ctor
ia80
080
070
060
01,
0 7,
609
-0,1
280,
89Kru
gers
dorp
: D
elpo
rton
40
040
035
029
01,
0 7,
010
-0,1
410,
87Ran
dfon
tein
: Aur
eus
450
400
350
320
1,0
7,12
2-0
,148
1,00
Bol
toni
a50
050
045
039
01,
0 7,
004
-0,1
090,
88Roo
depo
ort:
Tec
hnik
on/M
anuf
acta
700
700
600
600
1,0
7,12
5-0
,081
0,84
Indu
stria
Nor
th
867
793
775
760
1,0
7,10
7-0
,053
0,85
Rob
ertv
ille
880
865
860
838
1,5
6,91
4-0
,019
0,92
Lase
rpar
k1.
018
980
963
970
1,6
7,05
6-0
,021
0,72
Wes
t R
and
8
20
79
37
68
72
71
,4
East
Ran
d
Elan
dsfo
ntei
n88
388
286
280
61,
3 7,
056
-0,0
380,
79Tu
nney
/Gre
enhi
lls1.
140
1.13
71.
092
1.01
01,
1 7,
411
-0,0
510,
85H
envi
lle89
088
082
077
01,
0 7,
254
-0,0
650,
95H
ughe
s
1.30
01.
300
1.30
01.
300
1,3
7,17
0-
-Bar
tlett
s
1.28
31.
283
1.28
31.
300
1,6
7,12
20,
005
0,58
Lilia
nton
-
--
--
--
-M
eado
wbr
ook/
Wilb
art
1.16
01.
120
1.10
01.
010
1,1
7,44
0-0
,055
0,88
Sun
nyro
ck1.
160
1.14
01.
060
1.03
01,
1 7,
446
-0,0
550,
97Rus
tivia
/Act
ivia
Par
k 88
088
084
078
61,
1 7,
137
-0,0
490,
87Ea
stle
igh
1.01
31.
013
950
900
1,0
7,30
7-0
,054
0,91
Seb
enza
Ext
14
1.10
01.
067
967
900
1,0
7,63
8-0
,090
0,98
Spa
rtan
Ext
16
(Seb
enza
Lin
k) +
Ext
1,3
,7
900
900
888
870
1,0
6,91
0-0
,015
0,87
Isan
do1.
017
1.01
799
298
71,
5 7,
030
-0,0
150,
89
Rode’s Report 2020:2 111 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Isan
do 3
1.
000
1.00
097
893
01,
0 7,
131
-0,0
310,
82Je
t Pa
rk
1.30
01.
283
1.21
41.
157
1,3
7,53
9-0
,052
0,96
Alrod
e &
Xs
883
875
750
690
1,6
7,61
0-0
,116
0,94
Alrod
e Sou
th
730
725
638
613
1,6
7,19
9-0
,085
0,93
Alb
erto
n88
388
378
371
71,
4 7,
478
-0,0
960,
92Aer
opor
t/Spa
rtan
Ext
2
1.25
01.
250
1.10
096
31,
0 7,
977
-0,1
170,
90D
elvi
lle57
557
557
556
31,
0 6,
415
-0,0
080,
58Roo
deko
p75
072
563
846
52,
2 8,
051
-0,1
980,
85W
adev
ille:
Ind
ustr
ial z
onin
g81
379
367
552
52,
8 8,
051
-0,1
880,
89Rou
te 2
4/M
eado
wda
le
1.20
01.
200
1.07
51.
050
1,3
7,56
5-0
,067
0,90
Ger
mis
ton
S/I
ndus
trie
s E
592
575
575
533
1,0
6,65
6-0
,039
0,78
Drieh
oek/
Indu
stries
W
800
800
775
738
1,0
6,94
0-0
,035
0,86
Kni
ghts
550
550
538
525
1,0
6,46
1-0
,021
0,90
Spa
rtan
Pro
per
1.19
01.
100
980
930
1,9
7,83
6-0
,110
0,99
Foun
ders
Vie
w
1.22
51.
225
1.17
51.
075
1,1
7,51
2-0
,055
0,82
Long
mea
dow
1.47
01.
470
1.40
01.
324
1,5
7,62
9-0
,047
0,89
Pom
ona/
Kem
pton
Par
k 1.
157
1.18
61.
036
961
3,3
7,70
9-0
,090
0,86
Gos
fort
h Pa
rk
1.25
51.
255
1.26
51.
255
3,3
7,12
70,
001
0,09
S&
J In
dust
rial
Est
ate
1.25
01.
225
1.22
51.
225
3,5
7,17
7-0
,008
0,58
East
Ran
d
1.0
50
1.0
43
97
99
23
1,5
Fa
r Ea
st R
and
Bok
sbur
g N
orth
& E
ast
803
637
600
600
2,8
7,43
8-0
,118
0,74
Ben
oni S
outh
37
032
535
035
02,
0 5,
932
-0,0
100,
03N
ew E
ra/V
ulca
nia
550
550
550
550
4,0
6,31
0-
-N
uffie
ld65
055
055
055
04,
0 6,
856
-0,0
630,
58Fu
lcru
m-
--
--
--
-
Rode’s Report 2020:2 112 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Ape
x65
360
063
061
03,
8 6,
583
-0,0
190,
25La
bore
Bra
kpan
50
050
045
045
02,
0 6,
607
-0,0
550,
84M
oreh
ill E
xt 8
Ben
oni
600
600
610
535
1,0
6,69
9-0
,041
0,46
Far
East
Ran
d
61
65
51
55
65
45
2,8
P
reto
ria
Cha
rlot
te M
axek
e 70
065
060
055
0-
7,25
9-0
,102
1,00
Pret
oria
Ind
ustr
ial T
owns
hip
550
500
450
400
- 7,
245
-0,1
350,
99Koe
does
poor
t1.
033
967
900
783
1,2
7,74
3-0
,115
0,95
Wal
tloo/
Des
patc
h93
388
385
075
81,
0 7,
423
-0,0
840,
93Silv
erto
n/Silv
erto
ndal
e93
391
770
071
73,
1 7,
818
-0,1
390,
83Sam
cor
Park
95
090
082
567
51,
0 7,
860
-0,1
410,
91Sun
derlan
d Rid
ge
733
733
717
633
5,7
7,02
6-0
,058
0,71
Her
man
stad
700
650
600
550
1,0
7,25
9-0
,102
1,00
Kirkn
ey45
040
135
035
01,
5 6,
876
-0,1
140,
91H
enno
pspa
rk E
xt 1
5 &
Ext
7
1.38
51.
385
1.35
01.
350
1,0
7,32
8-0
,013
0,84
Gat
eway
1.18
81.
188
1.18
81.
188
1,0
7,08
00,
000
0,58
Lytt
elto
n M
anor
Ext
4/E
xt 6
68
368
368
368
31,
0 6,
527
--
Pret
oria
Nor
th
475
475
450
425
1,0
6,52
3-0
,050
0,90
Silv
erto
ndal
e X1
950
850
675
625
3,5
8,18
1-0
,191
0,98
Kle
rkso
ord
475
475
425
225
2,5
8,34
0-0
,297
0,70
Ros
slyn
625
625
600
425
4,0
7,54
6-0
,151
0,66
Cen
turion
1.16
71.
167
1.16
71.
167
1,7
7,06
30,
000
0,58
Pre
tori
a 8
63
83
97
89
73
22
,1
Pol
okw
ane
Lebo
wak
gom
o-
--
--
--
-Sup
erbi
a-
--
-2,
0 -
--
Rode’s Report 2020:2 113 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Indu
stria
--
--
2,0
--
-La
dine
-68
0-
-3,
0 -
--
Futu
ra
--
--
2,0
--
-La
boria
--
--
2,0
--
-M
agna
Via
88
889
490
382
61,
7 6,
984
-0,0
260,
41Ses
hego
--
--
4,0
--
-P
olok
wan
e -
--
-2
,2
Nel
spru
it
Nel
spru
it Ea
st-
--
--
--
-N
elsp
ruit
Wes
t 43
043
043
043
0-
6,06
4-
-Roc
ky’s
Drift
45
043
043
045
01,
0 6,
087
--
Riv
ersi
de P
ark
1.18
51.
185
1.18
51.
185
2,0
7,07
8-
-N
elsp
ruit
8
09
80
88
08
80
91
,9
Du
rban
Spr
ingf
ield
Par
k 2.
500
2.20
02.
000
1.90
01,
5 8,
612
-0,1
170,
96M
ayvi
lle
--
--
1,0
--
-Ph
oeni
x 1.
800
1.60
01.
500
1.40
03,
5 8,
195
-0,1
040,
97Chr
is H
ani R
d (N
orth
Coa
st/B
riar
dene
) 2.
500
2.20
02.
200
2.00
01,
5 8,
379
-0,0
840,
85Briar
dene
Ind
ustr
ial P
ark
2.50
02.
200
2.00
01.
800
2,0
8,76
1-0
,137
0,99
Um
geni
Rd/
Sta
mfo
rd H
ill
--
--
1,0
--
-U
mbi
lo/S
ydne
y Rd/
Mag
waz
a M
apha
lala
St
(Gal
e)
--
--
1,0
--
-
Jaco
bs
1.50
01.
500
--
1,0
--
-M
oben
i 1.
500
1.50
0-
-1,
0 -
--
Pros
pect
on
1.50
01.
500
1.60
01.
600
1,0
7,07
30,
034
0,84
Rode’s Report 2020:2 114 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Itha
la I
ndus
tria
l Est
ate
--
--
- -
--
Pine
tow
n Cen
tral
-
-1.
500
1.50
01,
0 -
--
New
Ger
man
y -
-1.
500
1.50
01,
0 -
--
Isip
ingo
-
-1.
200
-2,
0 -
--
Ros
sbur
gh/S
outh
Coa
st R
d
--
--
1,0
--
-Ed
win
Sw
ales
Drive
-
--
--
--
-G
len
Ani
l -
2.00
01.
800
1.60
02,
5 -
--
Felix
Dla
min
i Rd
(Brick
field
) -
--
-1,
0 -
--
Ver
ulam
-
--
--
--
-Can
elan
ds-
--
600
4,0
--
-To
ngaa
t-
--
--
--
-N
ew W
estm
ead/
Mah
ogan
y-
-1.
600
-1,
0 -
--
Wes
tmea
d-
-1.
600
-1,
0 -
--
Mar
iann
Par
k/Sou
thm
ead
--
1.40
01.
400
3,0
--
-M
axm
ead
--
1.65
0-
1,0
--
-Rin
groa
d In
dust
rial
Par
k -
--
--
--
-Avo
ca/R
ed H
ill/N
orth
gate
-
2.20
02.
000
1.80
03,
0 -
--
Falc
on P
ark
--
--
--
--
Riv
erho
rse
Val
ley
Bus
ines
s Es
tate
-3.
000
2.65
02.
500
1,5
--
-M
ount
Edg
ecom
be
1.90
01.
900
1.90
01.
692
2,0
7,87
2-0
,044
0,58
Um
bogi
ntw
ini/
Sou
thga
te1.
800
1.80
01.
500
1.50
02,
0 8,
175
-0,0
960,
84Sou
thga
te I
ndus
tria
l Par
k 1.
800
1.80
01.
500
1.50
01,
0 8,
175
-0,0
960,
84U
mge
ni P
ark
--
--
--
--
Ham
mer
sdal
e-
1.00
01.
000
600
4,0
--
-Cat
o Rid
ge
--
1.00
080
04,
0 -
--
Rode’s Report 2020:2 115 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Bal
lito
1.50
01.
500
1.50
099
25,
0 8,
460
-0,1
550,
58D
ube
Trad
epor
t-
--
--
--
-Kin
gsbu
rgh
1.50
01.
525
1.52
5-
- -
--
Cor
nubi
a
-1.
800
1.72
51.
625
4,0
--
-D
urb
an
1.8
62
1.8
24
1.6
91
1.4
30
2,2
La
dys
mit
hEz
akhe
ni/P
iete
rs-
--
--
--
-D
ansk
raal
-
-10
080
2,0
--
-N
ambi
ti
--
100
802,
0 -
--
Col
enso
--
--
--
--
Lad
ysm
ith
-
-1
00
80
2,0
C
ape
Pen
insu
laVik
ing
Plac
e -
--
--
--
-G
losd
erry
--
--
1,0
--
-Pa
arde
n Ei
land
/Met
ro
2.66
02.
500
2.46
02.
500
1,0
8,04
2-0
,026
0,56
Mon
tagu
e G
arde
ns
2.24
02.
075
1.94
01.
900
1,3
8,19
6-0
,072
0,95
Mar
coni
Bea
m
2.20
02.
025
1.87
51.
750
-8,
362
-0,0
971,
00Kill
arne
y G
arde
ns
1.75
01.
663
1.60
01.
300
1,6
8,30
2-0
,117
0,83
Rac
ing
Park
1.
067
933
883
800
4,3
7,75
5-0
,116
0,96
Atla
ntis
--
--
- -
--
Woo
dsto
ck/S
alt
Riv
er/O
bser
vato
ry
--
--
1,0
--
-Ath
lone
1 &
2
--
--
- -
--
Lans
dow
ne N
eris
sa-
--
-1,
0-
--
San
d In
dust
ria
--
--
--
--
Ott
ery
Hill
star
--
--
1,0
--
-O
tter
y Sun
set
--
--
--
--
Rode’s Report 2020:2 116 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Die
p Riv
er-
--
-1,
0-
--
Elfin
dale
--
--
1,0
--
-M
onw
ood/
Phili
ppi
--
--
--
--
Ret
reat
/Ste
enbe
rg-
--
-1,
0 -
--
Cap
rico
rn P
ark
1.80
01.
800
1.80
0-
1,0
--
-M
aitla
nd2.
138
2.08
82.
167
2.11
71,
2 7,
647
0,00
20,
01N
dabe
ni2.
417
2.35
02.
333
2.28
31,
0 7,
940
-0,0
220,
93Ep
ping
1 &
2
2.50
02.
500
2.00
02.
000
- 8,
655
-0,1
170,
84W
P Pa
rk-
--
--
--
-El
sies
Riv
er (
excl
. Cen
tral
Par
k)
1.20
01.
200
1.15
01.
150
1,0
7,24
9-0
,022
0,84
Paro
w B
eaco
nval
e 1.
633
1.50
01.
433
1.40
01,
3 7,
826
-0,0
650,
92Ty
gerb
erg
Bus
ines
s Pa
rk
1.80
01.
700
1.50
01.
400
1,0
8,28
3-0
,113
0,99
Paro
w I
ndus
tria
1.
775
1.65
01.
550
1.55
01,
7 7,
880
-0,0
600,
89Pa
row
Eas
t 2.
000
1.80
01.
500
1.20
01,
0 9,
138
-0,2
190,
98Bel
lvill
e O
akda
le
--
--
- -
--
Bel
lvill
e Stik
land
/Kay
mor
1.
763
1.73
81.
733
1.70
02,
0 7,
570
-0,0
140,
90Bel
lvill
e Tr
iang
le
1.36
71.
367
1.25
01.
200
2,3
7,66
6-0
,062
0,92
Bel
lvill
e Sou
th/S
acks
Circl
e 1.
550
1.52
51.
500
1.45
02,
3 7,
539
-0,0
280,
95Kra
aifo
ntei
n1.
450
1.45
01.
300
1.00
01,
5 8,
413
-0,1
560,
81Bra
cken
fell
Indu
stria
1.82
51.
800
1.75
01.
667
1,7
7,78
1-0
,038
0,93
Ever
ite B
rack
enfe
ll1.
875
1.87
51.
800
1.75
02,
0 7,
767
-0,0
320,
92Kui
ls R
iver
1.
300
1.20
01.
000
--
--
-Bla
ckhe
ath
867
850
783
700
1,5
7,42
5-0
,092
0,92
Sax
enbu
rg I
ndus
tria
l Par
k 1.
900
1.85
01.
750
1.60
01,
0 8,
066
-0,0
730,
94O
kava
ngo
1.76
71.
767
1.73
31.
650
2,5
7,68
4-0
,029
0,80
Rode’s Report 2020:2 117 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Bra
cken
gate
/Ico
n Bus
ines
s Pa
rk
2.20
02.
200
2.00
02.
000
1,5
8,05
1-0
,050
0,84
Paar
l 1.
117
1.00
077
565
03,
0 8,
705
-0,2
410,
99W
ellin
gton
1.
100
900
600
500
- 9,
474
-0,3
560,
99Con
term
ansk
loof
1.
750
1.75
01.
500
1.50
03,
0 8,
041
-0,0
810,
84Riv
erga
te2.
075
1.87
51.
650
-2,
5 -
--
Airpo
rt I
nd (
nort
h of
sew
erag
e fa
rm)
1.82
51.
800
1.72
5-
1,0
--
-Airpo
rt I
nd (
wes
t of
Bor
cher
ds Q
uarr
y)
1.90
01.
875
1.80
0-
1,0
--
-Airpo
rt I
nd (
east
of
Bor
cher
ds Q
uarr
y)2.
267
2.11
72.
033
2.02
53,
0 8,
043
-0,0
480,
87D
urba
nvill
e In
dust
rial
Par
k1.
500
1.50
01.
500
1.50
0-
7,31
3-
-N
orth
gate
Ind
ustr
ial P
ark
--
--
- -
--
Cap
e P
enin
sula
1
.80
71
.74
61
.65
61
.64
11
.7
Hel
der
ber
g
The
Inte
rcha
nge
--
--
- -
--
Hel
derb
erg
Indu
stri
al P
ark/
Bro
adla
nds
--
--
- -
--
Gan
ts
--
--
- -
--
Som
erse
t Bus
ines
s Pa
rk
--
--
- -
--
Geo
rges
Par
k/O
nver
wac
ht
--
--
- -
--
Man
sfie
ld
--
--
- -
--
Firg
rove
Ind
ustr
ial E
stat
e -
1.15
095
085
0-
--
-Str
and
Hal
t -
--
--
--
-H
eld
erb
erg
-
--
--
Ste
llen
bos
ch
Plan
kenb
rug
--
--
--
--
Dev
on V
alle
y -
--
--
--
-Te
nant
ville
--
--
- -
--
Rode’s Report 2020:2 118 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Kla
pmut
s-
--
--
--
-S
telle
nb
osch
-
--
--
Por
t El
izab
eth
D
eal P
arty
65
065
072
570
02,
3 6,
168
0,04
40,
66N
orth
End
80
080
079
273
82,
0 6,
920
-0,0
320,
68Kor
sten
/Nea
ve/S
idw
ell/
Syd
enha
m72
572
572
570
03,
0 6,
683
-0,0
130,
58Sou
th E
nd W
alm
er
850
850
850
825
1,1
6,82
8-0
,011
0,58
Uite
nhag
e: V
olks
wag
en a
rea/
NM
BLP
27
527
525
028
38,
0 5,
625
-0,0
030,
00U
itenh
age:
Hel
la/K
ruis
rivi
er
210
210
217
250
6,0
4,83
40,
070
0,72
Str
uand
ale
550
550
550
550
4,5
6,31
0-
-M
arkm
an T
owns
hip
160
175
233
233
7,0
3,80
00,
184
0,91
Pers
ever
ance
350
350
350
400
5,0
5,48
80,
050
0,58
Wal
mer
800
800
800
800
3,4
6,68
5-
-G
reen
bush
es41
745
042
543
33,
8 6,
017
0,00
60,
04Fa
irvi
ew1.
000
983
1.10
01.
100
3,3
6,52
80,
053
0,78
Por
t El
izab
eth
5
60
58
55
73
55
84
,0
East
Lon
don
Arc
adia
1.
150
800
600
450
1,0
9,74
1-0
,395
0,99
Gat
ely/
Woo
dbro
ok55
040
050
040
01,
5 6,
821
-0,0
860,
29W
ilson
ia
200
180
150
100
5,5
7,34
0-0
,287
0,91
Bra
elyn
50
040
030
020
02,
0 8,
917
-0,3
870,
98N
orth
end
55
045
035
025
01,
5 8,
634
-0,3
330,
98Chi
selh
urst
55
050
040
030
01,
0 8,
155
-0,2
610,
96M
eisi
es H
alt
750
700
500
440
6,5
8,38
4-0
,250
0,96
Bea
con
Bay
Ind
ustr
ial
750
600
--
1,0
--
-
Rode’s Report 2020:2 119 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
IDZ
--
--
7,0
--
-W
est
Ban
k In
dust
rial
Are
a -
--
-5,
0 -
--
East
Lon
don
6
25
50
44
00
30
63
,0
Blo
emfo
nte
in
Hilt
on-
-45
045
02,
0 -
--
East
End
96
097
575
068
52,
5 8,
060
-0,1
660,
89H
arve
y Roa
d -
-55
055
02,
0 -
--
Old
Ind
ustr
ial
--
350
350
4,0
--
-H
amilt
on:
Mill
St
--
500
500
1,0
--
-H
amilt
on:
G L
ubbe
St
--
500
500
1,0
--
-Es
toire
1.00
01.
000
743
617
5,0
8,53
0-0
,226
0,92
Qua
ggaf
onte
in-
-87
095
07,
0 -
--
Blo
emfo
nte
in
97
09
83
64
36
07
3,0
G
eorg
eG
eorg
e Cen
tral
46
740
037
737
54,
0 6,
732
-0,0
910,
81Ta
msu
i Ind
ustr
ia
458
410
370
350
4,0
6,91
7-0
,116
0,98
Paca
ltsdo
rp I
ndus
tria
44
840
036
035
04,
0 6,
835
-0,1
090,
95G
eorg
e
45
84
03
36
93
58
4,0
P
iete
rmar
itzb
urg
W
illow
ton
73
569
858
552
53,
0 7,
674
-0,1
520,
98M
kond
eni/
Sho
rtts
Ret
reat
52
551
546
541
54,
5 7,
003
-0,1
030,
94Cam
ps D
rift
50
047
543
539
03,
5 6,
961
-0,1
060,
98Pi
eter
mar
itzbu
rg C
entr
al
1.20
01.
200
1.00
090
02,
0 8,
061
-0,1
350,
92Ros
edal
e/Alla
ndal
e-
--
--
--
-H
owic
k-
--
--
--
-P
iete
rmar
itzb
urg
6
74
65
45
67
50
93
,4
Rode’s Report 2020:2 120 Industrial stand values
Tab
le 8
.2 (
con
tin
ued
) M
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m
² ex
cl.
VA
T)
Are
a si
ze i
n m
² La
nd
av
aila
bili
tya
b
r²1
.00
0
2.0
00
5
.00
0
10
.00
0
Low
er U
mfo
lozi
Em
pang
eni
- -
- -
- -
--
Low
er U
mfo
lozi
-
- -
- -
Win
dh
oek
N
orth
2.
200
2.20
02.
000
1.70
01,
0 8,
502
-0,1
110,
85La
fren
z
2.10
01.
900
1.90
01.
500
4,0
8,53
2-0
,126
0,80
Sou
th
3.30
03.
300
2.80
02.
600
1,0
8,91
9-0
,114
0,92
Pros
perita
2.
500
2.50
02.
300
1.80
01,
0 8,
814
-0,1
360,
78W
ind
hoe
k 2
.52
52
.47
52
.25
01
.90
01
,8
Rode’s Report 2020:2 121 Industrial stand values
Tab
le 8
.3
Sta
nd
ard
dev
iati
on
fro
m m
ean
mar
ket
valu
es f
or s
ervi
ced
an
d le
vel i
nd
ust
rial
sta
nd
s in
qu
arte
r 2
02
0:2
(R
/m²
excl
. V
AT)
Are
a si
ze i n
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0
Cen
tral
Wit
wat
ersr
and
Cam
brid
ge P
ark
--
--
REA
,SH
PW
ynbe
rg P
rope
r 35
0,00
35
0,00
-
- AP,
OS,S
HP
Str
ijdom
Par
k 18
7,08
18
7,08
18
7,08
18
7,08
AP,
AV,S
HP,
WH
F Kya
San
d W
est
124,
37
108,
97
124,
37
134,
63
AP,
AV,S
HP,
WH
F Kya
San
d Ea
st-
--
-La
nser
ia C
orpo
rate
Est
ate
- -
- -
SH
P Cos
mo
Bus
ines
s Pa
rk
- -
- -
SH
P M
osty
n Pa
rk-
--
-Cla
yvill
e/O
lifan
tsfo
ntei
n -
25,0
0 0,
00
15,0
0 RK,S
HP
Chl
oork
op
102,
74
54,0
8 54
,31
21,6
0 AP,
OS,P
PR,S
HP
Am
alga
m-
--
- FA
S
Cro
wn
Min
es
289,
64
289,
64
318,
85
329,
98
AP,
AV,F
AS
Indu
stria
250,
00
75,0
0 -
-AP,
AV
Boo
ysen
s/Boo
ysen
s Res
erve
/Oph
irto
n-
--
- AP
Vill
age
Mai
n/Vill
age
Dee
p/N
ew C
entr
e -
- -
- AP
Ben
rose
--
--
RO
Ste
eled
ale/
Elec
tron
/Tul
isa
Park
92,0
4 92
,04
12,5
0 0,
00
AP,
GB,R
O
Aer
oton
209,
50
209,
50
154,
56
81,6
5AP,
AV,F
AS
Dev
land
/Nan
cefie
ld32
5,00
32
5,00
17
5,00
-
AP,
FAS
Cle
vela
nd/H
erio
tdal
e-
--
- RO
New
land
s/M
artin
dale
--
--
AP
Kew
/Wyn
berg
Eas
t-
--
- AP,
OS
Bra
mle
y Vie
w/L
omba
rdy
Wes
t -
- -
- AP
Mar
lbor
o-
--
- AP
Hal
fway
Hou
se:
hi-t
ech
strip
124,
72
124,
72
62,3
6 10
8,97
AP,
RK,S
HP,
WP
Rode’s Report 2020:2 122 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0
Hal
fway
Hou
se:
Ric
hard
s D
rive
20
5,48
20
5,48
94
,28
84,9
8 AP,
RK,S
HP
Cor
pora
te P
ark
(Mid
rand
) -
- -
-
Com
mer
cia
25,0
0 25
,00
0,00
25
,00
AP,
SH
P Kra
mer
ville
/Eas
tgat
e Ex
t 12
& E
xt 1
3 -
- -
- AP,
SH
P Li
nbro
Par
k 73
,95
73,9
5 73
,95
41,4
6 AP,
AV,O
S,P
PR,R
ES,S
HP
Wes
co P
ark/
East
gate
Ext
3,
Ext
11,
Ext
6,
Ext8
/Mal
boro
Nor
th (
New
) -
--
- AP
City
Dee
p 81
,65
143,
37
143,
37
143,
37
AP,
AV,R
O
Nor
th R
idin
g/H
oogl
and
90,3
8 90
,14
99,5
9 98
,33
AP,
AV,S
HP,
WH
F Sam
rand
Cen
turion
14
3,37
14
3,37
16
3,30
16
3,30
AP,
RK,S
HP
Bar
bequ
e D
owns
20
5,48
20
5,48
20
5,48
18
0,28
AP,
RK,S
HP,
WP
Sel
by E
xt 1
2/13
/15/
19/2
0/24
/City
Wes
t -
- -
- AP
Sel
by E
xt 5
/10/
14/1
8-
--
- AP
Sel
by E
xt 1
1-
--
-Sel
by E
xt 3
/4/6
--
--
Den
ver
(Old
)-
--
- RO
Den
ver
(New
)-
--
- RO
Kya
lam
i Bus
ines
s Pa
rk-
--
- RK
Reu
ven
--
--
AP
Sel
by (
Old
)/Sel
by E
xt2/
Park
Cen
tral
-
- -
-
Rob
erts
ham
--
--
AP
Ford
sbur
g/N
ewto
wn
--
--
W
ater
fall
--
--
Lo
rds
Vie
w-
--
-
Wes
t R
and
Le
a G
len
50,0
0 70
,71
70,7
1 44
,03
AP,
FAS,S
HP
Hon
eyde
w E
xt 1
9, 2
0, 2
1 &
22
160,
08
162,
02
167,
24
270,
92
AP,
AV,F
AS,R
ES,S
HP
Rode’s Report 2020:2 123 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0
Sto
rmill
53,8
9 38
,16
19,6
0 25
,69
AP,
AV,F
AS,S
HP,
WH
F Cha
mdo
r 0,
00
50,0
0 50
,00
45,0
0 AP,
WH
F Fa
ctor
ia-
--
- AP
Kru
gers
dorp
: D
elpo
rton
--
--
AP
Ran
dfon
tein
: Aur
eus
50,0
0 0,
00
0,00
30
,00
AP,
WH
F Bol
toni
a-
--
- AP
Roo
depo
ort:
Tec
hnik
on/M
anuf
acta
--
--
AP
Indu
stria
Nor
th
94,2
89,
43
25,0
0 40
,00
AP,
AV,F
AS
Rob
ertv
ille
73,8
2 78
,90
55,2
3 37
,67
AP,
AV,S
HP,
WH
F La
serp
ark
186,
87
174,
50
170,
06
170,
59
AP,
AV,S
HP,
WH
F Ea
st R
and
El
ands
font
ein
67,9
3 67
,19
45,9
8 33
,72
CG
,GB,P
PR,S
HP,
SW
I,W
HF
Tunn
ey/G
reen
hills
101,
98
73,4
1 83
,75
111,
36
CG
,MR,P
PR,S
HP,
SW
I,W
HF
Hen
ville
66,3
3 67
,82
128,
84
166,
13
CG
,PPR
,SH
P,SW
I,W
HF
Hug
hes
12
2,47
12
2,47
12
2,47
12
2,47
AP,
PPR,S
HP,
WH
F Bar
tlett
s 62
,36
62,3
6 62
,36
70,7
1 AP,
PPR,S
HP,
WH
F Li
liant
on-
--
-
Mea
dow
broo
k/W
ilbar
t80
,00
74,8
3 63
,25
128,
06
CG
,PPR
,SH
P,SW
I,W
HF
Sun
nyro
ck80
,00
48,9
9 80
,00
116,
62
CG
,PPR
,SH
P,SW
I,W
HF
Rus
tivia
/Act
ivia
Par
k 67
,82
67,8
2 37
,42
37,2
0 CG
,PPR
,SH
P,SW
I,W
HF
East
leig
h11
3,88
11
3,88
35
,36
35,3
6 CG
,PPR
,SW
I,W
HF
Seb
enza
Ext
14
141,
42
124,
72
47,1
4 0,
00
CG
,MR,S
WI
Spa
rtan
Ext
16
(Seb
enza
Lin
k) +
Ext
1,3
,7
35,3
6 35
,36
21,6
5 24
,49
AP,
CG
,PPR
,SW
I,W
HF
Isan
do
37,2
7 37
,27
18,6
3 57
,25
AP,
AV,C
G,P
PR,S
HP,
SW
I,W
HF
Isan
do 3
0,
00
0,00
22
,78
41,2
3 AP,
CG
,SH
P,SW
I,W
HF
Jet
Park
15
2,75
15
7,23
14
5,69
15
9,08
AP,
AV,C
G,M
R,P
PR,S
HP,
SW
I,W
HF
Rode’s Report 2020:2 124 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze i n
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0
Alrod
e &
Xs
84,9
8 25
,00
54,7
7 48
,99
AP,
RO
,SH
P,SW
I,W
HF
Alrod
e Sou
th
178,
04
178,
54
143,
07
108,
25
AP,
SH
P,SW
I,W
HF
Alb
erto
n84
,98
84,9
8 47
,14
23,5
7 SH
P,SW
I,W
HF
Aer
opor
t/Spa
rtan
Ext
2
50,0
0 50
,00
70,7
1 41
,46
AP,
PPR,S
HP,
SW
I,W
HF
Del
ville
12
5,00
12
5,00
12
5,00
13
7,50
AP,
RO
Roo
deko
p10
6,07
10
8,97
73
,95
35,0
0 RO
,SH
P,SW
I,W
HF
Wad
evill
e: I
ndus
tria
l zon
ing
73,9
5 81
,66
55,9
0 55
,90
RO
,SH
P,SW
I,W
HF
Rou
te 2
4/M
eado
wda
le
70,7
1 70
,71
82,9
2 11
1,80
CG
,SH
P,SW
I,W
HF
Ger
mis
ton
S/I
ndus
trie
s E
119,
61
113,
65
113,
65
124,
72
AP,
RO
,WH
F D
rieh
oek/
Indu
stries
W
50,0
0 50
,00
25,0
0 12
,50
RO
,WH
F Kni
ghts
15
0,00
15
0,00
16
2,50
17
5,00
AP,
RO
Spa
rtan
Pro
per
185,
47
126,
49
24,4
9 40
,00
AP,
CG
,SH
P,SW
I,W
HF
Foun
ders
Vie
w
163,
94
163,
94
82,9
2 43
,30
CG
,SH
P,SW
I,W
HF
Long
mea
dow
40,0
0 40
,00
63,2
5 10
9,11
AV,C
G,S
HP,
SW
I,W
HF
Pom
ona/
Kem
pton
Par
k 16
7,82
14
5,69
78
,90
203,
82
AP,
AV,C
G,M
R,R
ES,R
O,S
HP,
SW
I,W
HF
Gos
fort
h Pa
rk
64,0
3 64
,03
66,3
3 64
,03
AP,
AV,C
G,R
O,S
HP
S&
J In
dust
rial
Est
ate
50,0
0 25
,00
25,0
0 25
,00
RO
,SH
P Fa
r Ea
st R
and
Bok
sbur
g N
orth
& E
ast
36,8
2 11
5,57
81
,65
0,00
AP,
AV,M
R,S
HP,
WH
F Ben
oni S
outh
30
,00
25,0
0 50
,00
50,0
0 SH
P,W
HF
New
Era
/Vul
cani
a-
--
- AP
Nuf
field
--
--
AP
Fulc
rum
--
--
Ape
x 77
,60
108,
01
132,
10
124,
10
AP,
MR,R
ES,R
O,W
HF
Labo
re B
rakp
an-
--
- AP
Rode’s Report 2020:2 125 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0
Mor
ehill
Ext
8 B
enon
i 20
0,00
20
0,00
19
0,00
16
5,00
AP,
WH
F P
reto
ria
Cha
rlot
te M
axek
e 10
0,00
15
0,00
20
0,00
25
0,00
AP,
AV
Pret
oria
Ind
ustr
ial T
owns
hip
50,0
0 0,
00
50,0
0 10
0,00
AP,
AV
Koe
does
poor
t 47
,14
47,1
4 70
,71
84,9
8 AP,
AV,H
N,W
HF
Wal
tloo/
Dis
patc
h 47
,14
84,9
8 40
,82
77,2
8 AP,
AV,W
HF
Silv
erto
n/Silv
erto
ndal
e47
,14
149,
72
40,8
2 62
,36
AP,
AV,H
N,W
HF
Sam
cor
Park
50
,00
0,00
75
,00
75,0
0 AP,
AV
Sun
derlan
d Rid
ge
23,5
7 23
,57
23,5
7 94
,28
AP,
AV,W
HF
Her
man
stad
10
0,00
15
0,00
20
0,00
25
0,00
AP,
AV
Kirkn
ey
50,0
0 10
0,50
15
0,00
15
0,00
AP,
AV
Hen
nops
park
Ext
15
& E
xt 7
11
0,23
11
0,23
81
,65
81,6
5 AP,
AV,W
HF
Gat
eway
108,
40
108,
25
108,
25
108,
25
AP,
AV,M
AS,W
HF
Lytt
elto
n M
anor
Ext
4/E
xt 6
11
7,85
11
7,85
11
7,85
11
7,85
AP,
AV,W
HF
Pret
oria
Nor
th
75,0
0 75
,00
100,
00
125,
00
AP,
AV
Silv
erto
ndal
e X1
50,0
0 50
,00
75,0
0 25
,00
AP,
AV
Kle
rkso
ord
25,0
0 25
,00
75,0
0 25
,00
AP,
AV
Ros
slyn
25
,00
25,0
0 0,
00
25,0
0 AP,
AV
Cen
turion
11
8,09
11
7,85
11
7,85
11
7,85
AP,
AV,W
HF
Pol
okw
ane
Lebo
wak
gom
o-
--
-Sup
erbi
a-
--
- M
O
Indu
stria
--
--
MO
La
dine
--
--
MO
Futu
ra-
--
- M
OLa
boria
--
--
MO
Rode’s Report 2020:2 126 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0
Mag
na V
ia
- 5,
88
- 76
,25
ES,M
O,N
ET
Ses
hego
--
--
MO
Nel
spru
it
Nel
spru
it Ea
st-
--
-N
elsp
ruit
Wes
t 0,
00
0,00
0,
000,
00
KEL
,ORI,
PG,P
M,P
PSRoc
ky's
Drift
--
--
MPV
Riv
ersi
de P
ark
0,00
0,00
0,00
0,00
KEL
,MPV
,ORI,
PG,P
M,P
PS
Du
rban
Spr
ingf
ield
Par
k -
- -
100,
00
BO
N,P
C
May
ville
--
--
PC
Phoe
nix
--
--
BO
N,P
C
Chr
is H
ani R
d (N
orth
Coa
st/B
riar
dene
) -
- -
- BO
N,P
C
Briar
dene
Ind
ustr
ial P
ark
--
--
BO
N,P
CU
mge
ni R
d/Sta
mfo
rd H
ill-
--
- PC
Um
bilo
/Syd
ney
Rd/
Mag
waz
a M
apha
lala
St
(Gal
e)
--
--
PC
Jaco
bs-
--
- JU
S,P
CM
oben
i-
--
- JU
S,P
CPr
ospe
cton
--
--
JUS,P
C,Z
ZIt
hala
Ind
ustr
ial E
stat
e-
--
-Pi
neto
wn
Cen
tral
--
--
PCN
ew G
erm
any
--
--
PC
Isip
ingo
--
--
PCRos
sbur
gh/S
outh
Coa
st R
d -
- -
- PC
Ed
win
Sw
ales
Drive
--
--
Gle
n Ani
l-
--
- BO
N,P
C
Rode’s Report 2020:2 127 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze i n
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0
Felix
Dla
min
i Rd
(Brick
field
) -
- -
- PC
Ver
ulam
--
--
Can
elan
ds-
--
- PC
Tong
aat
--
--
New
Wes
tmea
d/M
ahog
any
--
--
PCW
estm
ead
--
--
PCM
aria
nn P
ark/
Sou
thm
ead
--
--
PCM
axm
ead
--
--
PCRin
groa
d In
dust
rial
Par
k -
- -
-
Avo
ca/R
ed H
ill/N
orth
gate
--
--
BO
NFa
lcon
Par
k-
--
-
Riv
erho
rse
Val
ley
Bus
ines
s Es
tate
-
- 15
0,00
-
BO
N,P
C,Z
Z
Mou
nt E
dgec
ombe
10
0,00
10
0,00
10
0,00
96
,47
BO
N,C
A,P
C
Um
bogi
ntw
ini/
Sou
thga
te-
--
- JU
S,P
C
Sou
thga
te I
ndus
tria
l Par
k-
--
- JU
S,P
C
Um
geni
Par
k-
--
-
Ham
mer
sdal
e-
- -
0,00
PC,S
H
Cat
o Rid
ge
- -
- 20
0,00
PC
,SH
Bal
lito
-
- -
218,
26
BO
N,P
C,Z
Z
Dub
e Tr
adep
ort
--
--
Kin
gsbu
rgh
- 12
5,00
12
5,00
-
JUS,S
F,ZZ
Cor
nubi
a
- -
75,0
0 25
,00
BO
N,P
C
Lad
ysm
ith
Ez
akhe
ni/P
iete
rs-
--
-D
ansk
raal
--
--
DE
Nam
biti
--
--
DE
Rode’s Report 2020:2 128 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0
Col
enso
--
--
Cap
e P
enin
sula
Vik
ing
Plac
e-
--
-G
losd
erry
--
--
IKP
Paar
den
Eila
nd/M
etro
63
4,35
63
2,46
60
5,31
61
2,37
AN
,AP,
AX,D
N,S
WI
Mon
tagu
e G
arde
ns
224,
50
121,
62
120,
00
234,
52
AP,
AX,D
N,G
B,S
WI,
WH
F M
arco
ni B
eam
20
0,00
27
5,00
12
5,00
25
0,00
AX,S
WI
Kill
arne
y G
arde
ns
106,
07
138,
63
294,
39
100,
00
AN
,AP,
AX,D
N,S
WI,
WH
F Rac
ing
Park
12
4,72
94
,28
102,
74
- AP,
AX,D
N
Atla
ntis
--
--
W
oods
tock
/Sal
t Riv
er/O
bser
vato
ry-
--
- IK
P Ath
lone
1 &
2
- -
- -
La
ndsd
owne
Ner
issa
--
--
IKP
San
d In
dust
ria
--
--
O
tter
y H
illst
ar-
--
- IK
PO
tter
y Sun
set
--
--
D
iep
Riv
er-
--
- IK
P El
finda
le-
--
- IK
PM
onw
ood/
Phili
ppi
--
--
Ret
reat
/Ste
enbe
rg-
--
- IK
P Cap
rico
rn P
ark
163,
30
163,
30
163,
30
- AN
,IKP,
SW
I M
aitla
nd
263,
09
300,
78
311,
80
379,
33
AN
,AP,
AX,S
WI
Nda
beni
42
4,92
49
4,97
51
3,70
57
2,03
AP,
AX,S
WI
Eppi
ng 1
& 2
-
- -
- AP
WP
Park
--
--
Elsi
es R
iver
(ex
cl.
Cen
tral
Par
k)
200,
00
200,
00
250,
00
250,
00
AN
,AP
Paro
w B
eaco
nval
e 12
4,72
81
,65
47,1
4 0,
00
AN
,AP,
DN
Rode’s Report 2020:2 129 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0Ty
gerb
erg
Bus
ines
s Pa
rk
0,00
10
0,00
10
0,00
-
AP,
DN
Pa
row
Ind
ustr
ia
147,
90
165,
83
86,6
0 50
,00
AN
,AP,
DN
,PF
Paro
w E
ast
- -
- -
AN
,AP
Bel
lvill
e O
akda
le
- -
- -
Bel
lvill
e Stik
land
/Kay
mor
26
3,09
27
2,43
18
8,56
21
6,02
AN
,DN
,PF,
WH
F Bel
lvill
e Tr
iang
le
286,
74
286,
74
250,
00
200,
00
AN
,DN
,WH
F Bel
lvill
e Sou
th/S
acks
Circl
e 11
1,80
10
8,97
0,00
50,0
0 AN
,DN
,PF,
WH
FKra
aifo
ntei
n50
,00
50,0
010
0,00
-
AN
,DN
Bra
cken
fell
Indu
stria
108,
97
122,
47
165,
83
235,
70
AN
,DN
,PF,
WH
F Ev
erite
Bra
cken
fell
82,9
2 82
,92
0,00
40
,82
AN
,DN
,PF,
WH
F Kui
ls R
iver
-
- -
- PF
Bla
ckhe
ath
84,9
8 70
,71
23,5
7 -
AN
,DN
,PF
Sax
enbu
rg I
ndus
tria
l Par
k -
- -
- AN
O
kava
ngo
205,
48
205,
48
205,
48
150,
00
AN
,PF,
WH
F Bra
cken
gate
/Ico
n Bus
ines
s Pa
rk
- -
- -
AN
,WH
F Pa
arl
117,
85
100,
00
175,
00
150,
00
AP,
SF,
SW
I W
ellin
gton
-
- -
- SF
Con
term
ansk
loof
25
0,00
25
0,00
0,
00
- AP,
WH
F Riv
erga
te
125,
00
125,
00
150,
00
- AN
,AP
Airpo
rt I
nd (
nort
h of
sew
erag
e fa
rm)
125,
00
100,
00
125,
00-
AIR
,AN
Airpo
rt I
nd (
wes
t of
Bor
cher
ds Q
uarr
y)10
0,00
75
,00
100,
00-
AIR
,AN
Airpo
rt I
nd (
east
of
Bor
cher
ds Q
uarr
y)94
,28
84,9
8 47
,14
25,0
0 AIR
,AN
,DN
Dur
banv
ille
Indu
strial
Par
k -
- -
- W
HF
Nor
thga
te I
ndus
tria
l Par
k -
- -
-
Hel
der
ber
g
The
Inte
rcha
nge
- -
- -
Hel
derb
erg
Indu
strial
Par
k/Bro
adla
nds
- -
- -
Gan
ts-
- -
-Som
erse
t Bus
ines
s Pa
rk
- -
- -
Rode’s Report 2020:2 130 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0G
eorg
es P
ark/
Onv
erw
acht
-
- -
-
Man
sfie
ld-
- -
-Fi
rgro
ve I
ndus
tria
l Est
ate
- -
- -
AN
Str
and
Hal
t -
- -
-
Ste
llen
bos
ch
Plan
kenb
rug
- -
--
Dev
on V
alle
y -
- -
- Te
nant
ville
- -
--
Kla
pmut
s-
- -
-P
ort
Eliz
abet
h
Dea
l Par
ty
50,0
0 50
,00
125,
00
100,
00
ARN
,SU
M
Nor
th E
nd
200,
00
200,
00
135,
91
137,
50
ARN
,BR,S
UM
Kor
sten
/Nea
ve/S
idw
ell/
Syd
enha
m
125,
00
125,
00
125,
00
100,
00
ARN
,SU
M
Sou
th E
nd W
alm
er
0,00
0,
00
0,00
25
,00
ARN
,SU
M
Uite
nhag
e: V
olks
wag
en a
rea/
NM
BLP
25
,00
25,0
0 40
,82
62,3
6 ARN
,BR,S
UM
U
itenh
age:
Hel
la/K
ruis
rivi
er
40,0
0 40
,00
47,1
4 81
,65
ARN
,BR,S
UM
Str
uand
ale
50,0
0 50
,00
50,0
0 50
,00
ARN
,SU
M
Mar
kman
Tow
nshi
p 40
,00
25,0
0 84
,98
84,9
8 ARN
,BR,S
UM
Pe
rsev
eran
ce0,
00
0,00
0,
00
70,7
1 ARN
,BR,S
UM
W
alm
er
50,0
0 50
,00
50,0
0 50
,00
ARN
,SU
M
Gre
enbu
shes
47,1
4 0,
00
25,0
0 23
,57
ARN
,BR,S
UM
,TR
Fairvi
ew0,
00
23,5
7 14
1,42
14
1,42
ARN
,BR,S
UM
,TR
East
Lon
don
Arc
adia
--
--
CAP,
CH
R
Gat
ely/
Woo
dbro
ok-
--
- CAP,
CH
R
Wils
onia
--
--
CAP,
CH
R
Rode’s Report 2020:2 131 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0Bra
elyn
--
--
CAP,
CH
RN
orth
end
--
--
CAP,
CH
RChi
selh
urst
--
--
CAP,
CH
RM
eisi
es H
alt
--
--
CAP,
CH
RBea
con
Bay
Ind
ustr
ial
--
--
CAP,
CH
RID
Z-
--
- CAP
Wes
t Ban
k In
dust
rial
Are
a -
- -
- CAP
Blo
emfo
nte
in
Hilt
on-
--
- BR
East
End
56
,57
25,0
0 -
38,4
1 BR,E
D,E
K,E
QV
Har
vey
Roa
d-
--
- BR
Old
Ind
ustr
ial
--
--
BR
Ham
ilton
: M
ill S
t-
--
- BR
Ham
ilton
: G
Lub
be S
t -
- -
- BR
Esto
ire
- -
66,5
0 23
,57
BR,E
D,E
QV
Qua
ggaf
onte
in-
- 80
,00
- BR,E
QV,P
LA
Geo
rge
G
eorg
e Cen
tral
23
,57
0,00
20
,55
25,0
0 BVF,
GRV,
MU
L Ta
msu
i Ind
ustr
ia
31,1
8 14
,14
21,6
0 0,
00
BVF,
GRV,
MU
L Pa
calts
dorp
Ind
ustr
ia
37,0
4 16
,33
14,1
4 0,
00
BVF,
GRV,
MU
L P
iete
rmar
itzb
urg
W
illow
ton
13
5,00
14
7,50
85
,00
75,0
0 D
OR,H
N
Mko
nden
i/Sho
rtts
Ret
reat
25
,00
35,0
0 15
,00
15,0
0 D
OR,H
N
Cam
ps D
rift
0,
00
25,0
0 15
,00
10,0
0 D
OR,H
N
Piet
erm
aritz
burg
Cen
tral
--
--
DO
R
Ros
edal
e/Alla
ndal
e-
--
-
How
ick
--
--
Rode’s Report 2020:2 132 Industrial stand values
Tab
le 8
.3 (
con
tin
ued
) S
tan
dar
d d
evia
tio
n f
rom
mea
n m
arke
t va
lues
for
ser
vice
d a
nd
leve
l in
du
stri
al s
tan
ds
in q
uar
ter
20
20
:2
(R/m
² ex
cl.
VA
T)
Are
a si
ze in
m²
Pan
ellis
t co
des
1
.00
0
2.0
00
5
.00
0
10
.00
0Lo
wer
Um
folo
ziEm
pang
eni
--
--
Win
dh
oek
N
orth
--
--
TELa
fren
z-
--
- TE
Sou
th-
--
- TE
Pros
perita
--
--
TE
p
Rode’s Report 2020:2 133 Industrial stand values
Rode’s Report 2020:2 134 Flats market
Chapter 9: Flats market
Flat rental growth slows further Kobus Lamprecht
Nationally, flat vacancy rates averaged 7% in the second quarter of 2020, up from 5,5% in the second quarter of 2019, according to Rode’s residential survey data, summarized in Table 9.1 and shown in the chart. This was also higher than the 6,1% vacancy rate of the first quarter, when Rode conducted its surveys in February. As no evictions were allowed in the second quarter, this could mean that vacancies rose in March and that flats available to rent increased. We delve deeper into the latter at the end of this chapter.
High and rising flat vacancy rates have led to slower rental growth, which in the
first quarter of 2020 averaged 3,2% on a year earlier – the slowest since at least 2009. This implies that rentals rose less than consumer and building-cost inflation. In other words, rentals are declining in real terms.
Second-quarter rental data are not yet available from Stats SA, but we expect rental growth to weaken further. Indluplace, the largest residential fund on the JSE with almost 10 000 residential units nationally (mostly in Gauteng), said in May that it was seeing no opportunity for rental increases this year.
2
3
4
5
6
7
8
17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2
SA flat rentals versus vacancy rates since 2017
Annual change in flat rentals Rode flat vacancy rate (smoothed)
%
Source: Rode's Report; Stats SA
Rode’s Report 2020:2 135 Flats market
Table 9.1Flat vacancies by city (%)
Average for all grades(standard & upmarket combined)
City 19Q2 20Q2 Johannesburg 6,1% 5,6%Pretoria 6,8% 14,5%Cape Town 5,4% 8,3% Durban 8,8% 12,1%Bloemfontein 0,7% 1,0%Stellenbosch 5,2% 6,7%George 2,4% 0,0% National (smoothed) 5,5% 7,0%
Source of data: Rode’s Time Series
On a city level, vacancy rates are also generally higher compared to the second quarter of 2019.
Pretoria (14,5%) and Durban (12,1%) were worst hit, with vacancy rates rising to double digits. Johannesburg’s vacancy rate was surprisingly better than a year ago, but it won’t last, given the challenges caused by Covid-19.
The reason for the lower national rental increases is primarily a huge increase in new rental stock combined with weakening demand. A positive for the oversupplied market is that new completions have declined considerably since the second quarter of 2019 and building activity came to a standstill for most of the second quarter due to the lockdown. Developers are also planning to build less, as can be seen in Chapter 11.
Flat vacancy rates will rise further in the short term as the sharp contraction in the economy, exacerbated by Covid-19, puts significant financial pressure on many tenants, leading to a prolonged oversupply. The number of people losing their jobs or experiencing salary cuts has already increased sharply since the lockdown started in the last week of March. This has led to only an estimated 73% of tenants paying their rent in June compared to 82% before the crisis, according to TPN (the
biggest credit bureau that tracks tenant payments).
Another factor that will drive vacancies higher is the increases in long-term rental stock as owners opt out of the short-term market, like Airbnb, due to the collapse in tourism stemming from lockdown regulations.
Evictions are not allowed under lockdown level 5 to 3, which implies that no tenant could be evicted since the lockdown started, unless a court rules that the eviction may take place during level 3. The number of tenants receiving eviction notices is on the rise, which implies that vacancies could rise substantially if the country moves to level 2 and lower.
Tenants that cannot afford their rent will downgrade to cheaper or smaller properties or shared accommodation or move in with family. Thus, for a growing number of landlords, the stark reality will be to choose between lower rentals or no rentals.
In the tables that follow, we provide the specific rental levels in the suburbs for the various grades of flats. Please note that the flat-rental data tend to be erratic due to the small sample size. Therefore, readers are advised to use an average of at least the last two quarters to obtain the latest rental rate.
Tab
le 9
.2
Flat
ren
tals
: S
tan
dar
d u
nit
s A
vera
ge
ran
ds
per
mon
th a
s at
qu
arte
r 2
02
0:2
B
ach
elor
1-B
edro
om
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Jo
han
nes
bu
rg
R4
.44
5-
R5
.40
1-
R6
.65
7
-R
7.8
10
-City
R3.
060
R12
0R3.
935
R42
4R4.
463
R77
2R5.
881
R1.
708
CAR,E
XH
,FAS,P
PG,
TI,V
AR
Yeov
ille/
Bel
levu
e/H
ighl
ands
R3.
400
R40
0R3.
880
R68
4R4.
380
R91
4R4.
725
R92
5EX
H,N
AN
,PPG
Je
ppes
tow
n/Fo
rdsb
urg/
M
alve
rn/K
ensi
ngto
n R2.
800
-R2.
900
-R3.
000
--
-EX
H
Nor
th-E
aste
rn S
ubur
bs
R3.
000
-R4.
500
-R5.
000
-R6.
000
-EX
H
Mar
aisb
urg/
Cro
sby/
Brixt
on-
--
--
--
-M
elde
ne (
Mel
ville
, W
estd
ene,
Auc
klan
d Pa
rk)
--
--
- -
--
Kill
arne
y/Illo
vo-
--
--
--
-G
reen
side
/Vic
tory
Par
k/
Emm
aren
tia/
Lind
en
R7.
200
-R7.
500
-R8.
200
-R8.
750
-TR
Park
hurs
t/Pa
rkvi
ew-
--
-R9.
200
--
-TR
Ros
eban
k-
--
--
--
-Ran
dbur
g: F
ernd
ale/
Font
aine
blea
u R4.
400
R40
0R5.
067
R61
3R6.
700
R49
5R8.
750
R1.
250
CAR,E
TC,P
RS,T
I
Ran
dbur
g &
Sub
urbs
R4.
500
R30
0R5.
667
R23
6R7.
600
R66
3R9.
000
R1.
000
CAR,E
TC,P
RS,T
I,VAR
Win
dsor
: Ea
st/W
est
R3.
900
-R5.
550
R95
0R6.
550
R45
0R7.
300
-TI
,VAR
Cra
igha
ll/Cra
igha
ll Pa
rk
--
R7.
750
-R8.
200
-R9.
000
-TR
San
dton
: N
orth
& F
ar N
orth
R6.
000
R80
0R7.
250
R25
0R8.
500
R0
R11
.000
R1.
000
TR,V
AR
San
dton
: Sou
th t
o Cen
tral
R7.
125
R62
5R9.
000
R50
0R10
.100
R90
0R13
.250
-TR
,VAR
Bed
ford
view
-
--
--
--
-O
ld S
outh
-
--
--
--
-N
ew S
outh
-
--
--
--
-W
ater
fall
-
--
--
--
-CBD
Mab
onen
g R3.
200
-R3.
800
-R4.
500
-R5.
800
-FA
S
Hou
ghto
n Es
tate
-
--
--
--
-M
elro
se A
rch
--
--
- -
--
Rode’s Report 2020:2 136 Flats market
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or1
-Bed
room
2
-Bed
room
3-B
edro
omP
anel
list
cod
es
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mel
rose
(ex
clud
ing
Mel
rose
Arc
h)
--
--
--
--
Park
tow
n-
--
--
--
-G
erm
isto
n
Prim
rose
R2.
200
-R4.
050
-R5.
077
-R7.
800
-PH
Ger
mis
ton
Cen
tral
& S
outh
R2.
310
-R2.
950
-R3.
687
-R4.
005
-PH
G
erm
isto
n Sou
ther
n Sub
urbs
-
--
--
--
-
Elsb
urg
--
--
--
--
Witf
ield
--
--
--
--
Ben
on
i R
3.5
00
-R
4.6
06
-R
5.3
59
-R
6.3
09
-Ben
oni C
entr
al
--
--
--
--
Lake
field
--
--
--
--
Wes
tden
e-
-R5.
000
-R5.
300
-R6.
800
-SC
Farr
arm
ere
R3.
200
-R4.
500
-R5.
625
R62
5R6.
425
R92
5M
P,SC
Mor
ehill
R3.
300
R10
0R4.
575
R75
R5.
200
R20
0R5.
825
R32
5M
P,SC
Ryn
field
R3.
700
R10
0R4.
850
R50
R5.
500
R0
R6.
500
R0
MP,
SC
Nor
thm
ead
R3.
800
-R4.
500
-R5.
500
R0
R6.
300
R10
0M
P,SC
Cry
stal
Par
k -
--
-R5.
500
-R6.
500
-SC
Mac
kens
ie P
ark
--
--
--
--
W
este
rn E
xten
sion
-
-R4.
000
-R4.
500
-R6.
000
-SC
Bok
sbu
rg
Bok
sbur
g-
--
--
--
-K
emp
ton
Par
k Cro
ydon
--
--
--
--
Pre
tori
a R
3.7
97
-R
4.3
77
-R
5.5
38
-R
6.8
13
-
Aka
sia
R3.
800
-R4.
200
-R5.
575
R22
5R6.
275
R25
PPG
,TR
Pret
oria
Nor
th/D
oran
dia/
Fl
orau
na
--
--
--
--
Rode’s Report 2020:2 137 Flats market
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or
1-B
edro
om
2-B
edro
om
3-B
edro
omP
anel
list
cod
es
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Ann
lin/W
onde
rboo
m/S
inov
ille/
M
onta
na
--
--
--
--
Die
Moo
t/Q
ueen
swoo
d -
-R4.
350
R15
0R5.
500
--
-M
PR,T
R
East
Lyn
ne/E
erst
erus
t -
--
--
--
-Silv
erto
n/M
eyer
spar
k/
La M
onta
gne
R3.
500
-R5.
000
-R5.
900
--
-RIZ
East
(M
enlo
Par
k/Ash
lea
Gar
dens
/all
Lynw
oods
/Die
W
ilger
s/Fa
erie
Gle
n/G
arsf
onte
in/
Con
stan
tia/W
ater
kloo
f G
len/
Er
asm
uskl
oof)
--
--
R7.
000
-R8.
500
-M
PR,T
R
Pret
oriu
s Pa
rk
--
--
- -
--
Gro
enkl
oof/
Bro
okly
n/M
ost
Wat
erkl
oofs
/Era
smus
rand
-
--
--
--
-
Mon
umen
t Pa
rk-
--
--
--
-Sou
th E
aste
rn S
ubur
bs
--
--
- -
--
Sun
nysi
deR3.
597
R29
0R4.
267
R33
0R5.
161
R19
9R6.
436
R31
1M
PR,P
PG,T
R
Arc
adia
R3.
861
R24
2R4.
510
R38
5R5.
409
R32
7R7.
100
R45
5M
PR,P
PG,T
RPr
etor
ia C
entr
al
--
R4.
434
R23
4R5.
196
-R6.
471
-PP
G,T
R
Pret
oria
Wes
t -
-R3.
800
--
--
-TR
Kw
agga
sran
d/W
est
Park
-
--
--
--
-
Elan
dspo
ort/
Dan
ville
--
--
- -
--
Att
erid
gevi
lle/L
audi
um-
--
--
--
-H
atfie
ldR4.
500
--
--
--
-RIZ
Cen
turi
on
Pi
erre
van
Ryn
evel
d -
--
--
--
-Ir
ene
--
--
--
--
Klo
ofsi
g/Ly
ttel
ton
Man
or/
Dor
ingk
loof
/Zw
artk
op
--
--
--
--
Hig
hvel
d an
d ex
tens
ions
-
--
--
--
-
Rode’s Report 2020:2 138 Flats market
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or1
-Bed
room
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Clu
bvie
w/E
ldor
aign
e/W
ierd
a Pa
rk/C
rane
broo
k/Bro
nber
rick
/ Roo
ihui
skra
al N
orth
--
--
- -
--
Roo
ihui
skra
al/T
he R
eeds
-
-R6.
500
--
--
-VAR
Heu
wel
oord
--
R6.
000
-R7.
500
--
-VAR
Val
halla
--
--
--
--
Pol
okw
ane
Edua
npar
k/W
elge
lege
nR3.
000
-R4.
000
--
--
-SF
Ben
dor/
Ben
dor
exte
nsio
n 1
--
R4.
500
-R8.
000
--
-SF
Ste
r Pa
rk
--
--
- -
--
Flor
a Pa
rk/F
auna
Par
k/Cap
rico
rn
--
--
- -
--
Polo
kwan
e Cen
tral
/Hos
pita
al
Park
-
--
--
--
-
Ann
adal
e
--
R4.
500
-R5.
300
--
-SF
Peni
na P
ark/
Ivy
Park
-
-R4.
300
-R5.
500
-R6.
800
-SF
Du
rban
R
4.5
36
-R
6.0
37
-R
7.3
63
-
R9
.61
8-
U
pper
hig
hway
: Klo
of/H
illcr
est
--
--
- -
--
Pi
neto
wn
area
/Que
ensb
urgh
R4.
500
-R6.
000
-R6.
600
-R7.
500
-TR
W
estv
ille
area
-
-R6.
500
-R7.
000
--
-TR
Cen
tral
City
R4.
100
R10
0R5.
400
R10
0R6.
375
R12
5R7.
400
R40
0RS,T
R
Ber
ea/M
orni
ngsi
de/G
lenw
ood
R5.
000
R40
8R6.
000
R40
8R7.
200
R42
4R9.
500
R2.
550
PRI,
RS,T
R
Sou
th a
nd N
orth
Bea
ch
R4.
300
R51
0R5.
500
R81
7R6.
750
R89
0R8.
500
R1.
633
PRI,
RS,T
R
Dur
ban
Nor
th
R5.
000
-R7.
000
-R8.
000
-R9.
500
-TR
La
Luc
ia/G
reat
er U
mhl
anga
-
-R9.
000
-R14
.000
-
R20
.000
-TR
N
orth
(D
olph
in)
Coa
st/B
allit
o -
--
--
--
-M
ontc
laire/
Yello
ww
ood
Park
-
-R5.
000
-R6.
000
--
-TR
Blu
ffR4.
300
-R5.
250
-R6.
750
--
-TR
Am
anzi
mto
ti/W
arne
r Bea
ch
--
R6.
500
-R7.
500
--
-TR
Rode’s Report 2020:2 139 Flats market
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or
1-B
edro
om
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
C
ape
Tow
n
Cam
ps B
ay/C
lifto
n/Ban
try
Bay
R7.
500
-R11
.017
R2.
352
R14
.850
R3.
001
R26
.125
R11
.875
JU
S,S
Q,T
R
Sea
Poi
nt/G
reen
Poi
nt/T
hree
Anc
hor
Bay
R7.
083
R71
7R9.
000
R0
R10
.975
R52
5-
- JU
S,S
Q,T
R
City
Bow
l (ex
cl.
Hig
gova
le)
R6.
450
R30
0R7.
650
R15
0R9.
333
R1.
650
R11
.000
R3.
000
PX,S
Q,T
R
City
Cen
tre
R6.
150
-R7.
500
-R11
.300
-
R12
.500
-
TR
Wat
erfr
ont
--
--
- -
--
Woo
dsto
ck/O
bser
vato
ryR5.
040
-R5.
588
R1.
913
R8.
250
R1.
250
R10
.500
- PX
,SQ
,TR
Ron
debo
sch/
Ros
eban
k/Cla
rem
ont
R6.
250
-R8.
000
R50
0R9.
500
-R11
.750
R75
0 SQ
,TR
Ken
ilwor
th/W
ynbe
rg/P
lum
stea
d R5.
375
R87
5R7.
150
R1.
230
R9.
425
R75
R12
.500
-
PX,S
Q,T
R
Gra
ssy
Park
-
--
--
--
-
Mui
zenb
erg/
Kal
k Bay
/Fis
h H
oek
--
R5.
300
R30
0R6.
950
R50
R9.
000
- SQ
,TR
Hou
t Bay
-
--
--
--
-
Miln
erto
n San
ddrift
-
--
--
--
-
Miln
erto
n Roy
al A
scot
R6.
250
-R8.
225
-R9.
600
R10
0R13
.000
-
SQ
,TR
Miln
erto
n Bur
gund
y Es
tate
-
--
-R9.
500
--
- SQ
Ta
blev
iew
--
--
R9.
250
R25
0R10
.500
-
SQ
,TR
Park
land
s/San
dow
n/Sun
ning
dale
--
--
R7.
860
R94
0-
- PP
G,T
RBlo
uber
gstr
and
--
R7.
750
R75
0R10
.175
R82
5-
-SQ
,TR
Mel
kbos
stra
nd-
--
--
-R9.
000
-TR
Ath
lone
--
--
- -
--
Gar
land
ale
--
--
- -
--
Ron
debo
sch
East
/Cra
wfo
rd
--
R6.
000
-R8.
125
R62
5R9.
500
- PX
,TR
Mitc
hells
Pla
in
--
--
- -
- -
Bis
hop
Lavi
s -
--
--
--
-
Mon
tana
/Bel
har
--
R4.
800
-R5.
500
--
-TR
Pine
land
s-
--
--
--
-Bro
okly
n/Rug
by/M
aitla
ndR4.
300
-R5.
500
-R6.
875
R12
5-
- SQ
,TR
Mon
te V
ista
/Goo
dwoo
d/Pa
row
/
Bel
lvill
e Cen
tral
R4.
750
-R6.
050
R55
0R6.
850
R35
0-
- SQ
,TR
Rode’s Report 2020:2 140 Flats market
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or
1-B
edro
om
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Ty
ger
Val
ley
area
-
--
-R9.
000
--
-TR
D
urba
nvill
e-
--
--
--
-Bra
cken
fell/
Kui
ls R
iver
R4.
800
-R5.
300
-R6.
000
-R9.
200
-CIR
Som
erse
t W
est
R4.
500
-R6.
000
-R7.
500
-R10
.000
-JU
S
Str
and
R4.
500
-R5.
500
-R6.
250
R1.
250
R8.
000
-JU
S,T
RG
ordo
n's
Bay
R3.
800
-R5.
500
-R6.
500
-R9.
500
R2.
500
JUS,T
R
Kra
aifo
ntei
n (e
xcl.
Buh
-Rei
n)
--
--
- -
--
Buh
-Rei
n Es
tate
-
--
--
--
-
Paar
lR3.
750
-R4.
500
-R8.
500
-R10
.500
-PR
UW
ellin
gton
R2.
800
-R3.
500
--
--
-SQ
Cen
tury
City
-
--
--
--
-
Ste
llen
bos
ch
Clo
etes
ville
--
--
--
--
Ond
er P
apeg
aaib
erg
--
--
- -
--
Sim
onsw
yk-
--
--
--
-Id
as V
alle
y -
--
--
--
-U
niep
ark
-
--
--
--
-Krige
ville
-
--
--
--
-D
alsi
g-
--
-R8.
000
-R10
.500
-M
HP
Kle
inge
luk
-
--
--
--
-Pa
rady
sklo
of
--
--
- -
--
Kle
in W
elge
vond
en
--
--
R7.
500
-R10
.000
-M
HP
Nuu
tgev
onde
n-
--
--
--
-N
ooitg
edac
ht V
illag
e
--
--
- -
--
Cam
pus
– Cen
tral
-
--
-R8.
000
-R10
.000
-M
HP
Cam
pus
– W
est
--
--
R7.
000
-R9.
000
-M
HP
Cam
pus
– N
orth
-
--
--
--
-La
Col
line
-
--
--
--
-
Rode’s Report 2020:2 141 Flats market
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or1
-Bed
room
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
G
eorg
e R
3.8
25
-R
4.3
08
-R
5.6
50
-
R6
.53
1-
Hea
ther
Par
k -
--
--
--
-H
eath
erla
nds
--
--
- -
--
Kin
g G
eorg
e Pa
rk
--
--
- -
--
Dor
meh
l's D
rift
-
--
-R6.
000
R0
R6.
625
R12
5BVF,
GRV
Geo
rge
Sou
th
R3.
650
R15
0R4.
200
R0
R5.
500
R0
R6.
375
R12
5BVF,
GRV
Geo
rge
Cen
tral
R3.
900
R10
0R4.
350
R15
0R5.
500
R0
R6.
625
R12
5BVF,
GRV
Bo-
Dor
pR3.
925
R75
R4.
375
R12
5R5.
550
-R6.
500
R0
BVF,
GRV
Den
ver
Park
--
--
--
--
Loer
ie P
ark
--
--
--
--
Prot
ea P
ark
--
--
- -
--
Park
dene
--
--
--
--
Bor
cher
ds-
--
--
--
-La
waa
ikam
p-
--
--
--
-Bal
lot's
Vie
w
--
--
- -
--
Her
olds
Bay
(ex
cl.
Oub
aai)
-
--
--
--
-O
ubaa
i-
--
--
--
-P
ort
Eliz
abet
h
R3
.32
5-
R4
.40
0-
R5
.31
3
-R
6.9
60
-Sum
mer
stra
nd/H
umew
ood/
Sou
th E
nd
R3.
700
-R5.
500
-R7.
500
-R8.
200
-TR
Wal
mer
R4.
200
-R4.
500
--
--
-TR
Cen
tral
/Nor
th E
nd
R2.
900
-R3.
800
R30
0R5.
000
-R5.
500
-IP
C,T
R
New
ton
Park
-
--
-R5.
800
--
-TR
W
este
ring
--
--
R5.
500
-R6.
700
-TR
Kab
ega
--
--
R5.
500
R0
R6.
400
-IP
C,T
R
Alg
oa P
ark
--
--
R3.
850
R35
0-
-IP
C,T
R
Lorr
aine
--
--
--
--
She
rwoo
dR2.
500
--
--
--
-TR
Fairvi
ew-
--
--
-R8.
000
-TR
Rode’s Report 2020:2 142 Flats market
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or
1-B
edro
om
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Ea
st L
ond
on
Sou
ther
nwoo
d/Q
uign
ey
Bea
ch/C
BD
-
-R3.
631
R53
1R5.
310
R39
0R5.
900
R50
PPG
,TR
Ber
ea-
--
--
--
-Cam
brid
ge/A
mal
inda
/Hav
en
Hill
s -
-R2.
915
-R6.
600
--
-TR
Bea
con
Bay
--
--
--
--
Gon
ubie
--
R4.
750
-R5.
750
--
-D
AL
Cov
e Roc
k-
--
--
--
-N
ahoo
n-
--
--
--
-Vin
cent
--
R3.
100
--
-R10
.000
-TR
Kim
ber
ley
R3
.90
0
-R
5.5
00
-R
6.9
00
-R
7.6
00
-
Alb
erty
nsho
fR3.
500
-R5.
500
-R6.
500
-R7.
000
-PW
Bel
grav
iaR3.
500
-R5.
500
-R6.
500
-R7.
000
-PW
New
Par
k R3.
500
-R5.
500
-R6.
500
-R7.
000
-PW
El
toro
Par
k R4.
500
-R5.
500
-R7.
500
-R8.
500
-PW
H
illcr
est
R4.
500
-R5.
500
-R7.
500
-R8.
500
-PW
Blo
emfo
nte
in
R2
.92
7-
R3
.64
0-
R4
.40
0-
R5
.85
4-
Blo
emfo
ntei
n CBD
R2.
575
R22
5R3.
300
R60
0R3.
900
R30
0-
-ED
,PLA
Wes
tden
e R3.
000
R0
R3.
850
R35
0R4.
700
R20
0R6.
000
R0
ED,P
LA
Will
ows
R2.
900
R10
0R3.
650
R15
0R4.
300
R20
0R5.
900
R10
0ED
,PLA
N
aval
sig
R2.
600
R40
0R3.
550
R35
0R3.
900
R20
0R5.
500
R0
ED,P
LA
Arb
oret
um
R3.
250
R25
0R3.
550
R35
0R4.
400
R10
0R5.
400
R40
0ED
,PLA
La
ngen
hove
npar
k R3.
200
R10
0R4.
000
R50
0R5.
250
R75
0R6.
500
R1.
000
ED,P
LA
Bai
nsvl
ei
R2.
900
-R3.
800
-R4.
200
--
-ED
Uni
vers
itas
R2.
750
-R3.
500
-R4.
500
-R5.
500
-ED
Pe
ntag
on P
ark
R3.
200
-R3.
500
-R4.
400
R0
R6.
000
R0
ED,P
LA
Rode’s Report 2020:2 143 Flats market
Tab
le 9
.2 (
con
tin
ued
) Fl
at r
enta
ls:
Sta
nd
ard
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or1
-Bed
room
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
P
iete
rmar
itzb
urg
R
3.8
75
-R
4.7
33
-R
5.6
50
-
R7
.07
5-
Woo
dlan
ds/N
orth
dale
/Bom
bay
Hei
ghts
/Ori
ent
Hei
ghts
/ Alla
ndal
e -
--
--
--
-
Cha
se V
alle
y/O
ak P
ark/
Cha
sede
ne/N
orth
ern
Park
R4.
500
-R4.
900
R10
0R6.
250
R25
0R8.
300
R20
0D
OR,H
N
Wem
bley
/Cla
rend
onR4.
500
-R5.
350
R15
0R6.
500
R0
R8.
000
R0
DO
R,H
NPi
eter
mar
itzbu
rg C
ity
R3.
900
R40
0R4.
500
R0
R5.
200
R20
0R6.
250
R25
0D
OR,H
N
Pres
tbur
y
R3.
500
-R4.
250
R25
0R5.
150
R15
0R6.
250
R25
0D
OR,H
N
Pelh
am/S
cott
svill
e/Ric
hmon
d Cre
st/B
isle
y
R3.
350
R15
0R4.
400
R40
0R5.
250
R25
0R7.
000
R0
DO
R,H
N
Hay
field
s/Li
ncol
n M
eade
/ Bel
levu
e/Th
e M
eado
ws
R4.
000
-R5.
000
R0
R5.
550
R50
R6.
650
R15
0D
OR,H
N
Van
der
bij
lpar
k Van
derb
ijlpa
rk C
entr
al
--
--
- -
--
Van
derb
ijlpa
rk C
E R3.
420
-R4.
250
-R4.
750
--
-D
T Van
derb
ijlpa
rk S
E -
--
--
--
-Van
derb
ijlpa
rk S
W
--
--
- -
--
Van
derb
ijlpa
rk C
W
--
--
- -
--
Rode’s Report 2020:2 144 Flats market
Tab
le 9
.3
Flat
ren
tals
: U
pm
arke
t u
nit
s A
vera
ge
ran
ds
per
mon
th a
s at
qu
arte
r 2
02
0:2
B
ach
elor
1
-Bed
room
2
-Bed
room
3-B
edro
omP
anel
list
cod
es
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Joh
ann
esb
urg
City
R3.
200
-R6.
500
--
--
-FA
S,T
I,VAR
Yeov
ille/
Bel
levu
e/H
ighl
ands
--
--
--
--
Jepp
esto
wn/
Ford
sbur
g/M
alve
rn/
Ken
sing
ton
--
--
--
--
Nor
th-E
aste
rn S
ubur
bs
R5.
000
-R6.
000
-R7.
000
-R8.
000
-EX
H
Mar
aisb
urg/
Cro
sby/
Brixt
on-
--
--
--
-M
elde
ne (
Mel
ville
/Wes
tden
e/
Auc
klan
d Pa
rk)
--
--
--
--
Kill
arne
y/Illo
voR6.
200
-R7.
500
-R8.
300
-R11
.000
-TR
G
reen
side
/Vic
tory
Par
k/
Emm
aren
tia/L
inde
n R8.
200
-R8.
900
-R9.
400
-R10
.500
-TR
Park
hurs
t/Pa
rkvi
ew-
--
--
--
-Ros
eban
k-
--
--
--
-Ran
dbur
g: F
ernd
ale/
Font
aine
blea
u R5.
000
R0
R5.
707
R21
3R7.
133
R27
5R8.
950
R1.
050
CAR,E
TC,P
PG,P
RS
Ran
dbur
g &
Sub
urbs
R5.
200
-R6.
400
-R8.
467
R1.
733
--
CAR,E
TC,P
PG,P
RS
Win
dsor
: Ea
st/W
est
--
--
--
R7.
700
-TI
Cra
igha
ll/Cra
igha
ll Pa
rk
R7.
000
-R8.
000
-R8.
500
--
-TR
San
dton
: N
orth
& F
ar N
orth
R7.
000
-R8.
450
-R8.
750
--
-TR
San
dton
: Sou
th t
o Cen
tral
-
--
--
--
-
Bed
ford
view
--
--
--
--
Old
Sou
th
--
--
--
--
New
Sou
th
--
--
--
--
Wat
erfa
ll-
--
--
--
-CBD
Mab
onen
g -
--
--
--
-H
ough
ton
Esta
te
--
--
--
--
Mel
rose
Arc
h -
--
--
--
-M
elro
se (
excl
udin
g M
elro
se A
rch)
-
--
--
--
-Pa
rkto
wn
--
--
--
--
Rode’s Report 2020:2 145 Flats market
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or
1-B
edro
om
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
G
erm
isto
n
Prim
rose
--
--
--
--
Ger
mis
ton
Cen
tral
& S
outh
-
--
--
--
-G
erm
isto
n Sou
ther
n Sub
urbs
-
--
--
--
-El
sbur
g-
--
--
--
-W
itfie
ld-
--
--
--
-B
enon
i Ben
oni C
entr
al
--
--
--
--
Lake
field
--
--
--
--
Wes
tden
e-
--
--
--
-Fa
rrar
mer
eR6.
500
-R8.
000
-R12
.000
--
-M
PM
oreh
ill-
--
--
--
-Ryn
field
--
R5.
000
-R6.
000
-R9.
000
-SC
Nor
thm
ead
--
--
R6.
200
-R9.
000
-SC
Cry
stal
Par
k -
-R4.
200
-R5.
800
-R6.
800
-SC
Mac
kens
ie P
ark
--
--
--
--
Wes
tern
Ext
ensi
on
--
--
--
--
Bok
sbu
rg
Bok
sbur
g-
--
--
--
-K
emp
ton
Par
k Cro
ydon
--
--
--
--
Pre
tori
a Aka
sia
--
--
--
--
Pret
oria
Nor
th/D
oran
dia/
Flor
auna
-
--
--
--
-Ann
lin/W
onde
rboo
m/S
inov
ille/
M
onta
na
--
--
R7.
100
-R9.
700
-TR
Die
Moo
t/Q
ueen
swoo
d -
--
--
--
-Ea
st L
ynne
/Eer
ster
ust
--
--
--
--
Rode’s Report 2020:2 146 Flats market
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or1
-Bed
room
2
-Bed
room
3-B
edro
omP
anel
list
cod
es
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Silv
erto
n/M
eyer
spar
k/La
Mon
tagn
e-
-R5.
500
--
--
-RIZ
East
(M
enlo
Par
k/Ash
lea
Gar
dens
/ al
l Lyn
woo
ds/D
ie W
ilger
s/Fa
erie
G
len/
Gar
sfon
tein
/Con
stan
tia/
Wat
erkl
oof
Gle
n/Er
asm
uskl
oof)
--
--
--
--
Pret
oriu
s Pa
rk
--
--
- -
--
Gro
enkl
oof/
Bro
okly
n/M
ost
Wat
erkl
oofs
/Era
smus
rand
-
--
--
--
-
Mon
umen
t Pa
rk
--
--
- -
--
Sou
th E
aste
rn S
ubur
bs
--
--
- -
--
Sun
nysi
de-
--
--
--
-Arc
adia
--
--
--
--
Pret
oria
Cen
tral
-
--
--
--
-Pr
etor
ia W
est
--
--
- -
--
Kw
agga
sran
d/W
est
Park
-
--
--
--
-El
ands
poor
t/D
anvi
lle-
--
--
--
-Att
erid
gevi
lle/L
audi
um-
--
--
--
-H
atfie
ld-
-R5.
850
R50
R8.
200
--
-RIZ
,TR
Cen
turi
on
Pi
erre
van
Ryn
evel
d -
--
--
--
-Ir
ene
--
--
- -
--
Klo
ofsi
g/Ly
ttel
ton
Man
or/
Dor
ingk
loof
/Zw
artk
op
--
--
--
--
Hig
hvel
d an
d ex
tens
ions
-
--
--
--
-Clu
bvie
w/E
ldor
aign
e/W
ierd
a Pa
rk/
Cra
nebr
ook/
Bro
nber
rick
/ Roo
ihui
skra
al N
orth
--
--
--
--
Roo
ihui
skra
al/T
he R
eeds
-
--
--
--
-
Rode’s Report 2020:2 147 Flats market
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omP
anel
list
cod
es
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Heu
wel
oord
--
--
--
--
Val
halla
- -
- -
- -
--
Pol
okw
ane
Edua
npar
k/W
elge
lege
n-
--
--
--
-Ben
dor/
Ben
dor
exte
nsio
n 1
- -
- -
R8.
200
-R14
.000
-SF
Ste
r Pa
rk
- -
- -
- -
--
Fl
ora
Park
/Fau
na P
ark/
Cap
rico
rn
- -
- -
- -
--
Po
lokw
ane
Cen
tral
/Hos
pita
al P
ark
- -
- -
- -
--
Ann
adal
e-
--
--
--
-Pe
nina
Par
k/Iv
y Pa
rk
- -
- -
- -
--
D
urb
an
R5
.33
3-
R6
.68
3
-R
9.3
57
-
R1
2.7
31
-
Upp
er h
ighw
ay:
Klo
of/H
illcr
est
- -
- -
- -
--
Pi
neto
wn
area
/Que
ensb
urgh
-
--
--
--
-
Wes
tvill
e ar
ea
- -
- -
- -
--
Cen
tral
City
R4.
500
-R6.
000
-R7.
000
-R8.
200
-RS
Ber
ea/M
orni
ngsi
de/G
lenw
ood
R6.
000
R40
8R7.
433
R94
R8.
667
R23
6R12
.133
R29
33PR
I,RS,T
RSou
th a
nd N
orth
Bea
ch
R4.
750
R25
0R5.
900
R60
0R7.
250
R1.
250
R10
.750
R32
85PR
I,RS,T
R
Dur
ban
Nor
th
- -
- -
- -
--
La
Luc
ia/G
reat
er U
mhl
anga
-
--
-R18
.000
-
R25
.000
-TR
N
orth
(D
olph
in)
Coa
st/B
allit
o -
--
--
--
-
Mon
tcla
ire/
Yello
ww
ood
Park
-
--
--
--
-
Blu
ff-
--
--
--
-Am
anzi
mto
ti/W
arne
r Bea
ch
- -
- -
- -
--
C
ape
Tow
n
Cam
ps B
ay/C
lifto
n/Ban
try
Bay
R11
.000
-
R21
.250
R7.
750
R31
.975
R14
.025
--
JUS,S
Q
Sea
Poi
nt/G
reen
Poi
nt/T
hree
Anc
hor
Bay
R8.
750
R75
0R14
.500
R4.
000
R19
.667
R5.
312
--
JUS,S
Q,T
R
City
Bow
l (ex
cl.
Hig
gova
le)
- -
R11
.660
-
R14
.000
-
R24
.900
R10
.100
LA,T
R
Rode’s Report 2020:2 148 Flats market
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or1
-Bed
room
2
-Bed
room
3-B
edro
om
Pan
ellis
t co
des
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
City
Cen
tre
R10
.900
-R12
.500
--
--
- SQ
W
ater
fron
t-
--
--
--
-W
oods
tock
/Obs
erva
tory
--
R8.
950
R1.
950
R11
.000
--
- LA
,SQ
Ron
debo
sch/
Ros
eban
k/Cla
rem
ont
--
--
R10
.000
-R13
.500
-
LA,S
QKen
ilwor
th/W
ynbe
rg/P
lum
stea
d-
--
--
--
- G
rass
y Pa
rk
--
--
--
- -
Mui
zenb
erg/
Kal
k Bay
/Fis
h H
oek
--
--
--
- -
Hou
t Bay
R8.
000
-R10
.000
-R16
.000
-R39
.000
-
JUS
Miln
erto
n San
ddrift
-
--
--
--
- M
ilner
ton
Roy
al A
scot
-
--
-R11
.500
--
- SQ
M
ilner
ton
Bur
gund
y Es
tate
-
--
--
--
- Ta
blev
iew
--
--
--
--
Park
land
s/San
dow
n/Sun
ning
dale
--
--
--
- -
LABlo
uber
gstr
and
--
--
--
--
Mel
kbos
stra
nd-
--
--
--
-Ath
lone
--
--
--
--
Gar
land
ale
--
--
--
--
Ron
debo
sch
East
/Cra
wfo
rd
--
--
--
- -
Mitc
hells
Pla
in
--
--
--
- -
Bis
hop
Lavi
s -
--
--
--
- M
onta
na/B
elha
r-
--
--
--
-Pi
nela
nds
--
--
--
--
Bro
okly
n/Rug
by/M
aitla
nd-
--
--
--
-M
onte
Vis
ta/G
oodw
ood/
Paro
w/
Bel
lvill
e Cen
tral
R5.
000
--
--
--
- LA
Tyge
r Val
ley
area
-
--
--
--
- D
urba
nvill
eR4.
000
-R6.
500
-R8.
000
--
- LA
Bra
cken
fell/
Kui
ls R
iver
-
--
-R7.
000
--
- LA
Rode’s Report 2020:2 149 Flats market
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or1
-Bed
room
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Som
erse
t W
est
R5.
000
-R6.
500
-R9.
000
-R14
.000
-JU
S
Str
and
R5.
000
-R6.
500
-R7.
400
R1.
600
R14
.000
-JU
S,L
A
Gor
don'
s Bay
R4.
200
-R5.
800
-R6.
900
R1.
400
--
JUS,L
A
Kra
aifo
ntei
n (e
xcl.
Buh
-Rei
n)
--
--
R5.
750
--
-LA
Buh
-Rei
n Es
tate
-
--
-R6.
500
--
-LA
Paar
l R4.
000
-R5.
150
R35
0R9.
500
-R12
.500
-LA
,PRU
W
ellin
gton
-
--
--
--
-Cen
tury
City
-
--
--
--
-
Ste
llen
bos
ch
Clo
etes
ville
--
--
--
--
Ond
er P
apeg
aaib
erg
--
--
--
--
Sim
onsw
yk-
--
--
--
-Id
as V
alle
y-
--
--
--
-U
niep
ark
--
--
--
--
Krige
ville
--
--
--
--
Dal
sig
--
--
--
--
Kle
inge
luk
-
--
--
--
-Pa
rady
sklo
of
--
--
R7.
500
-R11
.000
-M
HP
Kle
in W
elge
vond
en
--
--
--
R10
.500
-M
HP
Nuu
tgev
onde
n-
--
--
--
-N
ooitg
edac
ht V
illag
e -
--
--
--
-Cam
pus
– Cen
tral
--
--
--
--
Cam
pus
– W
est
--
--
--
--
Cam
pus
– N
orth
--
--
--
--
La C
ollin
e
--
--
--
--
Geo
rge
Hea
ther
Par
k-
--
--
--
-H
eath
erla
nds
--
--
--
--
Kin
g G
eorg
e Pa
rk-
--
--
--
-
Rode’s Report 2020:2 150 Flats market
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or
1-B
edro
om2
-Bed
room
3-B
edro
omP
anel
list
cod
es
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Dor
meh
l's D
rift
-
--
-R8.
500
R0
R9.
625
R12
5BVF,
GRV
Geo
rge
Sou
th-
--
--
--
-G
eorg
e Cen
tral
--
--
--
--
Bo-
Dor
p-
--
--
--
-D
enve
r Pa
rk-
--
--
--
-Lo
erie
Par
k-
--
--
--
-Pr
otea
Par
k-
--
--
--
-Pa
rkde
ne-
--
--
--
-Bor
cher
ds-
--
--
--
-La
waa
ikam
p-
--
--
--
-Bal
lot's
Vie
w-
--
--
--
-H
erol
ds B
ay (
excl
. O
ubaa
i)-
--
--
--
-O
ubaa
i-
--
--
--
-P
ort
Eliz
abet
h
Sum
mer
stra
nd/H
umew
ood/
Sou
th E
nd
--
--
--
--
Wal
mer
--
--
R6.
400
--
-IP
CCen
tral
/Nor
th E
nd-
--
--
--
-N
ewto
n Pa
rk-
--
--
--
-W
este
ring
--
--
--
--
Kab
ega
--
--
--
--
Alg
oa P
ark
--
--
--
--
Lorr
aine
--
--
R7.
000
--
-IP
CShe
rwoo
d-
--
--
--
-Fa
irvi
ew-
--
--
--
-Ea
st L
ond
on
Sou
ther
nwoo
d/Q
uign
ey
Bea
ch/C
BD
-
-R5.
100
-R5.
800
-R6.
400
-TR
Ber
ea-
--
-R6.
500
--
-TR
Cam
brid
ge/A
mal
inda
/Hav
en H
ills
--
R3.
950
-R6.
800
-R9.
200
-TR
Rode’s Report 2020:2 151 Flats market
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or
1-B
edro
om
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Bea
con
Bay
-
--
--
-R8.
950
-TR
G
onub
ie-
--
--
-R10
.300
-D
AL
Cov
e Roc
k -
--
--
--
-N
ahoo
n-
--
-R6.
900
--
-TR
Vin
cent
--
R3.
900
--
-R14
.500
-TR
Blo
emfo
nte
in
Blo
emfo
ntei
n CBD
R2.
825
R75
R3.
800
R30
0R4.
675
R17
5R5.
900
R10
0ED
,PLA
W
estd
ene
R3.
300
-R4.
000
-R5.
000
--
-ED
Will
ows
R3.
000
-R4.
000
-R4.
500
-R6.
000
-ED
Nav
alsi
g-
-R4.
000
-R5.
000
-R6.
000
-ED
Arb
oret
umR3.
300
-R4.
000
-R5.
000
-R5.
500
-ED
Lang
enho
venp
ark
R3.
350
R10
0-
--
--
-ED
,PLA
Bai
nsvl
ei-
--
--
--
-ED
Uni
vers
itas
R3.
200
-R4.
000
-R5.
000
-R6.
500
-ED
Pent
agon
Par
k -
-R4.
500
-R5.
750
R75
0R7.
750
R75
0ED
,PLA
K
imb
erle
y Alb
erty
nsho
f-
--
--
-R8.
000
-PW
Bel
grav
ia-
--
--
-R8.
000
-PW
New
Par
k -
--
--
-R8.
000
-PW
El
toro
Par
k -
--
--
-R10
.000
-PW
H
illcr
est
--
--
--
R10
.000
-PW
Pie
term
arit
zbu
rg
--
R5
.77
5-
R6
.97
5-
R8
.52
5-
Woo
dlan
ds/N
orth
dale
/Bom
bay
Hei
ghts
/Ori
ent
Hei
ghts
/Alla
ndal
e -
--
--
--
-
Cha
se V
alle
y/O
ak P
ark/
Cha
sede
ne/N
orth
ern
Park
-
-R5.
200
-R6.
900
-R9.
000
-H
N
Wem
bley
/Cla
rend
on-
-R6.
900
-R8.
400
-R10
.000
-H
NPi
eter
mar
itzbu
rg C
ity
--
--
--
--
Pres
tbur
y
--
--
--
--
Rode’s Report 2020:2 152 Flats market
Tab
le 9
.3 (
con
tin
ued
) Fl
at r
enta
ls:
Up
mar
ket
un
its
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Bac
hel
or1
-Bed
room
2-B
edro
om3
-Bed
room
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Pe
lham
/Sco
ttsv
ille/
Ric
hmon
d Cre
st/
Bis
ley
R3.
500
-R5.
200
-R6.
100
-R8.
000
-H
N
Hay
field
s/Li
ncol
n M
eade
/ Bel
levu
e/Th
e M
eado
ws
--
R5.
800
-R6.
500
-R7.
100
-H
N
Van
der
bij
lpar
k Van
derb
ijlpa
rk C
entr
al-
--
--
--
-Van
derb
ijlpa
rk C
E-
--
--
--
-Van
derb
ijlpa
rk S
E-
--
--
--
-Van
derb
ijlpa
rk S
W-
--
--
--
-Van
derb
ijlpa
rk C
W-
--
--
--
-
Rode’s Report 2020:2 153 Flats market
Tab
le 9
.4
Flat
: P
arki
ng
ren
tals
A
vera
ge
ran
ds
per
mon
th a
s at
qu
arte
r 2
02
0:2
O
pen
C
ove
red
Lo
cku
p
Bas
emen
t P
anel
list
cod
es
Mea
n
SD
M
ean
S
D
Mea
n
SD
M
ean
S
D
Joh
ann
esb
urg
City
--
R22
0-
R25
0 -
R44
0R90
FAS,P
PGYe
ovill
e/Bel
levu
e/H
ighl
ands
R20
0-
R20
0-
R25
0 -
R25
0-
EXH
,PPG
Jepp
esto
wn/
Ford
sbur
g/M
alve
rn/
Ken
sing
ton
R20
0-
R20
0-
R25
0-
R25
0-
EXH
Nor
th-E
aste
rn S
ubur
bs
R40
0-
R45
0-
R45
0 -
R45
0-
EXH
M
arai
sbur
g/C
rosb
y/Brixt
on-
--
--
--
-M
elde
ne (
Mel
ville
, W
estd
ene,
Auc
klan
d Pa
rk)
--
--
--
--
Kill
arne
y/Illo
voR40
0-
R52
0-
- -
--
TRG
reen
side
/Vic
tory
Par
k/
Emm
aren
tia/
Lind
en
--
--
--
--
Park
hurs
t/Pa
rkvi
ew-
--
--
--
-Ros
eban
k-
--
--
--
-Ran
dbur
g: F
ernd
ale/
Font
aine
blea
u -
--
--
--
-
Ran
dbur
g &
Sub
urbs
-
--
--
--
-W
inds
or:
East
/Wes
t -
-R20
0-
- -
--
TI
Cra
igha
ll/Cra
igha
ll Pa
rk
--
--
- -
--
San
dton
: N
orth
& F
ar N
orth
-
--
--
--
-San
dton
: Sou
th t
o Cen
tral
-
--
--
--
-Bed
ford
view
--
--
--
--
Old
Sou
th
R32
0-
R35
0-
R45
0 -
R45
0-
FAS
New
Sou
th
R32
0-
R35
0-
R45
0 -
R45
0-
FAS
Wat
erfa
ll-
--
--
--
-CBD
Mab
onen
g -
-R32
0-
R35
0 -
R45
0-
FAS
Rode’s Report 2020:2 154 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
H
ough
ton
Esta
te-
--
--
--
-M
elro
se A
rch
--
--
--
--
Mel
rose
(ex
clud
ing
Mel
rose
Arc
h)-
--
--
--
-Pa
rkto
wn
--
--
--
--
Ger
mis
ton
Pr
imro
se-
--
--
--
-G
erm
isto
n Cen
tral
& S
outh
-
--
--
--
-G
erm
isto
n Sou
ther
n Sub
urbs
-
--
--
--
-El
sbur
g-
--
--
--
-W
itfie
ld-
--
--
--
-B
enon
i Ben
oni C
entr
al
--
--
- -
--
Lake
field
--
--
--
--
Wes
tden
e-
--
--
--
-Fa
rrar
mer
eR17
0-
--
R20
0 R0
--
MP,
SC
Mor
ehill
--
R30
0-
--
--
SC
Ryn
field
R17
5-
--
--
--
SC
Nor
thm
ead
--
--
--
--
Cry
stal
Par
k-
--
--
--
-M
acke
nsie
Par
k-
--
--
--
-W
este
rn E
xten
sion
-
--
--
--
-B
oksb
urg
Bok
sbur
g-
--
--
--
-K
emp
ton
Par
k Cro
ydon
--
--
--
--
Rode’s Report 2020:2 155 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
P
reto
ria
Aka
sia
--
--
--
--
Pret
oria
Nor
th/D
oran
dia/
Flor
auna
-
-R25
0-
R35
0-
--
TR
Ann
lin/W
onde
rboo
m/S
inov
ille/
M
onta
na
--
--
--
--
Die
Moo
t/Q
ueen
swoo
d -
--
--
--
-Ea
st L
ynne
/Eer
ster
ust
--
--
--
--
Silv
erto
n/M
eyer
spar
k/La
Mon
tagn
e-
-R20
0-
--
--
RIZ
East
(M
enlo
Par
k/Ash
lea
Gar
dens
/ al
l Lyn
woo
ds/D
ie W
ilger
s/Fa
erie
G
len/
Gar
sfon
tein
/Con
stan
tia/
W
ater
kloo
f G
len/
Eras
mus
kloo
f)
--
--
--
--
Pret
oriu
s Pa
rk
--
--
--
--
Gro
enkl
oof/
Bro
okly
n/M
ost
Wat
erkl
oofs
/Era
smus
rand
-
--
--
--
-
Mon
umen
t Pa
rk
--
--
--
--
Sou
th E
aste
rn S
ubur
bs
--
--
--
--
Sun
nysi
deR20
0R20
--
--
--
PPG
,TR
Arc
adia
R17
5R5
--
--
--
PPG
,TR
Pret
oria
Cen
tral
R17
8R3
--
--
--
PPG
,TR
Pret
oria
Wes
t -
--
--
--
-Kw
agga
sran
d/W
est
Park
-
--
--
--
-El
ands
poor
t/D
anvi
lle-
--
--
--
-Att
erid
gevi
lle/L
audi
um-
--
--
--
-H
atfie
ld-
-R20
0-
--
--
RIZ
Rode’s Report 2020:2 156 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
C
entu
rio
n
Pier
re v
an R
ynev
eld
--
--
- -
--
Iren
e-
--
--
--
-Klo
ofsi
g/Ly
ttel
ton
Man
or/
Dor
ingk
loof
/Zw
artk
op
--
--
--
--
Hig
hvel
d an
d Ex
tens
ions
-
--
--
--
-Clu
bvie
w/E
ldor
aign
e/W
ierd
a Pa
rk/C
rane
broo
k/Bro
nber
rick
/ Roo
ihui
skra
al N
orth
--
--
--
--
Roo
ihui
skra
al/T
he R
eeds
-
--
--
--
-H
euw
eloo
rd-
--
--
--
-Val
halla
--
--
- -
--
Pol
okw
ane
Edua
npar
k/W
elge
lege
n-
--
--
--
-Ben
dor/
Ben
dor
exte
nsio
n 1
--
--
- -
--
Ste
r Pa
rk
--
--
- -
--
Flor
a Pa
rk/F
auna
Par
k/Cap
rico
rn
--
--
- -
--
Polo
kwan
e Cen
tral
/Hos
pita
al P
ark
--
R21
0-
- -
--
SF
Ann
adal
e-
--
--
--
-Pe
nina
Par
k/Iv
y Pa
rk
--
--
- -
--
Du
rban
R
25
5-
R2
98
-R
36
7
-R
45
0-
Upp
er h
ighw
ay:
Klo
of/H
illcr
est
--
--
- -
--
Pine
tow
n ar
ea/Q
ueen
sbur
gh
R20
0-
R25
0-
R30
0 -
--
TR
Wes
tvill
e ar
ea
--
--
- -
--
Cen
tral
City
R32
5R75
R35
0R50
R37
5 R25
R40
0-
RS,T
R
Ber
ea/M
orni
ngsi
de/G
lenw
ood
R20
0R10
0R25
0R10
0R36
3 R13
R45
0-
PRI,
TRSou
th a
nd N
orth
Bea
ch
R30
0R82
R32
5R61
R40
8 R31
R47
5R75
PRI,
RS,T
R
Rode’s Report 2020:2 157 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
D
urba
n N
orth
-
--
--
--
-La
Luc
ia/G
reat
er U
mhl
anga
-
--
--
--
-N
orth
(D
olph
in)
Coa
st/B
allit
o -
--
--
--
-M
ontc
laire/
Yello
ww
ood
Park
R20
0-
R25
0-
R30
0-
--
TR
Blu
ffR20
0-
--
--
--
TRAm
anzi
mto
ti/W
arne
r Bea
ch
R25
0-
R30
0-
--
--
TR
Cap
e To
wn
R
53
7-
R5
51
-R
68
1-
--
Cam
ps B
ay/C
lifto
n/Ban
try
Bay
-
-R65
0R15
0R90
0R50
--
SQ
,TR
Sea
Poi
nt/G
reen
Poi
nt/T
hree
Anc
hor
Bay
-
-R57
5R17
5R80
0R0
--
SQ
,TR
City
Bow
l (ex
cl.
Hig
gova
le)
R71
0-
R57
5R17
5R80
0R0
--
SQ
,TR
City
Cen
tre
R67
0-
--
--
--
SQ
W
ater
fron
t-
--
--
--
-W
oods
tock
/Obs
erva
tory
R55
0-
R30
0-
R44
0-
--
SQ
,TR
Ron
debo
sch/
Ros
eban
k/Cla
rem
ont
R61
0-
R71
0-
--
--
SQ
Ken
ilwor
th/W
ynbe
rg/P
lum
stea
dR43
0-
--
--
--
SQ
Gra
ssy
Park
-
--
--
--
-M
uize
nber
g/Kal
k Bay
/Fis
h H
oek
--
--
--
--
Hou
t Bay
-
--
--
--
-M
ilner
ton
San
ddrift
-
--
--
--
-M
ilner
ton
Roy
al A
scot
-
--
-R85
0-
--
SQ
M
ilner
ton
Bur
gund
y Es
tate
-
--
-R65
0-
--
SQ
Ta
blev
iew
--
--
R69
0-
--
SQ
Park
land
s/San
dow
n/Sun
ning
dale
--
--
--
--
Blo
uber
gstr
and
--
--
R70
0-
--
SQ
Mel
kbos
stra
nd-
--
--
--
-Ath
lone
--
--
--
--
Rode’s Report 2020:2 158 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
G
arla
ndal
e-
--
--
--
-Ron
debo
sch
East
/Cra
wfo
rd
--
--
- -
--
Mitc
hells
Pla
in
--
--
- -
--
Bis
hop
Lavi
s -
--
--
--
-M
onta
na/B
elha
r-
--
--
--
-Pi
nela
nds
--
--
- -
--
Bro
okly
n/Rug
by/M
aitla
nd-
--
-R20
0 -
--
SQ
Mon
te V
ista
/Goo
dwoo
d/ P
arow
/ Bel
lvill
e Cen
tral
-
--
-R25
0-
--
SQ
Tyge
r Val
ley
area
-
--
--
--
-D
urba
nvill
e-
--
--
--
-Bra
cken
fell/
Kui
ls R
iver
R25
0-
R35
0-
R75
0 -
--
CIR
Som
erse
t W
est
--
--
- -
--
Str
and
--
--
- -
--
Gor
don'
s Bay
-
--
--
--
-Kra
aifo
ntei
n (e
xcl.
Buh
-Rei
n)
--
--
- -
--
Buh
-Rei
n Es
tate
-
--
--
--
-Pa
arl
--
--
- -
--
Wel
lingt
on-
--
--
--
-Cen
tury
City
-
--
--
--
-S
telle
nb
osch
Clo
etes
ville
--
--
- -
--
Ond
er P
apeg
aaib
erg
--
--
- -
--
Sim
onsw
yk-
--
--
--
-Id
as V
alle
y -
--
--
--
-U
niep
ark
-
--
--
--
-
Rode’s Report 2020:2 159 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
Krige
ville
-
--
--
--
-D
alsi
g-
--
--
--
-Kle
inge
luk
-
--
--
--
-Pa
rady
sklo
of
R15
0-
--
- -
--
MH
P Kle
in W
elge
vond
en
R12
0-
--
- -
--
MH
P N
uutg
evon
den
--
--
- -
--
Noo
itged
acht
Vill
age
--
R40
0-
- -
R40
0-
MH
P Cam
pus
– Cen
tral
-
--
--
--
-Cam
pus
– W
est
--
--
- -
--
Cam
pus
– N
orth
-
--
--
--
-La
Col
line
-
--
--
--
-G
eorg
e H
eath
er P
ark
--
--
- -
--
Hea
ther
land
s-
--
--
--
-Kin
g G
eorg
e Pa
rk
--
--
- -
--
Dor
meh
l's D
rift
-
--
--
--
-G
eorg
e Sou
th
--
--
- -
--
Geo
rge
Cen
tral
-
--
-R45
0 -
--
BVF
Bo-
Dor
p-
--
--
--
-D
enve
r Pa
rk
--
--
- -
--
Loer
ie P
ark
--
--
- -
--
Prot
ea P
ark
--
--
- -
--
Park
dene
--
--
- -
--
Bor
cher
ds-
--
--
--
-La
waa
ikam
p-
--
--
--
-Bal
lot's
Vie
w
--
--
- -
--
Rode’s Report 2020:2 160 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
H
erol
ds B
ay (
excl
. O
ubaa
i)
--
--
- -
--
Oub
aai
--
--
- -
--
Por
t El
izab
eth
Sum
mer
stra
nd/H
umew
ood/
Sou
th E
nd
--
--
--
--
Wal
mer
--
--
- -
--
Cen
tral
/Nor
th E
nd
R15
0-
R25
0-
- -
--
TR
New
ton
Park
-
--
--
--
-W
este
ring
--
--
- -
--
Kab
ega
--
--
- -
--
Alg
oa P
ark
--
--
- -
--
Lorr
aine
--
--
- -
--
She
rwoo
d-
--
--
--
-Fa
irvi
ew-
--
--
--
-Ea
st L
ond
on
Sou
ther
nwoo
d/Q
uign
ey
Bea
ch/C
BD
R15
0-
--
--
--
TR
Ber
ea-
--
--
--
-Cam
brid
ge/A
mal
inda
/Hav
en H
ills
--
--
- -
--
Bea
con
Bay
-
--
--
--
-G
onub
ie-
--
--
--
-Cov
e Roc
k -
--
--
--
-N
ahoo
n-
--
--
--
-Vin
cent
--
--
- -
--
Rode’s Report 2020:2 161 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
B
loem
fon
tein
-
-R
15
7-
R3
50
-
R2
56
-Blo
emfo
ntei
n CBD
-
--
--
--
-W
estd
ene
-
-R15
0-
R30
0 -
R25
0-
ED
Will
ows
--
R15
0-
R35
0 -
R25
0-
EDN
aval
sig
--
R17
0-
R35
0 -
R24
0-
EDArb
oret
um-
-R17
0-
R35
0 -
R25
0-
EDLa
ngen
hove
npar
k-
-R15
0-
R35
0 -
R25
0-
EDBai
nsvl
ei-
--
--
--
-U
nive
rsita
s-
-R15
0-
R35
0 -
R25
0-
EDPe
ntag
on P
ark
--
--
R40
0 -
R30
0-
ED
Kim
ber
ley
Alb
erty
nsho
f-
--
--
--
-Bel
grav
ia-
--
--
--
-N
ew P
ark
--
--
- -
--
Elto
ro P
ark
--
--
- -
--
Hill
cres
t-
--
--
--
-P
iete
rmar
itzb
urg
-
-R
30
2-
R3
96
-
R3
62
-W
oodl
ands
/Nor
thda
le/B
omba
y H
eigh
ts/O
rien
t H
eigh
ts/A
lland
ale
--
--
- -
--
Cha
se V
alle
y/O
ak P
ark/
Cha
sede
ne/
Nor
ther
n Pa
rk
--
R37
0-
R47
0-
R44
0-
HN
Wem
bley
/Cla
rend
on-
--
--
--
-Pi
eter
mar
itzbu
rg C
ity
--
R32
0-
R45
0 -
R41
0-
HN
Pr
estb
ury
-
-R27
0-
R36
0 -
R30
0-
HN
Pe
lham
/Sco
ttsv
ille/
Ric
hmon
d Cre
st/
Bis
ley
-
-R27
0-
R34
0-
R32
0-
HN
Hay
field
s/Li
ncol
n M
eade
/Bel
levu
e/
The
Mea
dow
s -
-R28
0-
R36
0-
R34
0-
HN
Rode’s Report 2020:2 162 Flats market
Tab
le 9
.4 (
con
tin
ued
) Fl
at:
Par
kin
g r
enta
ls
Ave
rag
e ra
nd
s p
er m
onth
as
at q
uar
ter
20
20
:2
Op
en
Co
vere
d
Lock
up
B
asem
ent
Pan
ellis
t co
des
M
ean
S
D
Mea
n
SD
M
ean
S
D
Mea
n
SD
V
and
erb
ijlp
ark
Van
derb
ijlpa
rk C
entr
al
R50
-R10
2-
- -
--
DT
Van
derb
ijlpa
rk C
E -
--
--
--
-Van
derb
ijlpa
rk S
E -
--
--
--
-Van
derb
ijlpa
rk S
W
--
--
- -
--
Van
derb
ijlpa
rk C
W
--
--
- -
--
Rode’s Report 2020:2 163 Flats market
Our heartfelt thanks to the companies that contributed to the residential-market survey. By clicking on their logos, you will learn more about these panellists.
Rode’s Report 2020:2 165 House market
Chapter 10: House market
House price growth weakens further
Kobus Lamprecht
The housing market is under increasing pressure, with national house price growth continuing to weaken. The latest data from FNB show that nominal house price growth slowed to 1,9% year on year in April 2020, down from 2,5% in March, and the lowest since end 2009. House prices grew by 2,6% in the first four months of 2020 compared to the same period in 2020, slower than the 3,6% growth recorded in 2019. This implies that prices have continued to decline in real terms after having taken out inflation.
Please note that the April data do not fully reflect the impact of the lockdown. This is because FNB’s index is constructed using mortgage approval data, and there is generally a lag between mortgage applications being submitted and approved. Approximately 60% of the April sample relate to applications that commenced before the lockdown.
The housing market is still a buyers’ market due to the oversupply, most significantly at the high end of the market where sales volumes have declined drastically. The very-low end of the market remains the best positioned as demand still exceeds supply (as far as we know!).
Below we briefly discuss the drivers of changes in house prices, before looking at how interest rate cuts and Covid-19 will possibly impact the housing market in the near term.
Drivers of changes in house prices
House prices correlate well with the value of residential mortgages granted over the long
term, with r² = 0,5, as shown in the chart. Unfortunately, no 2020 data for residential mortgages granted are available from the SARB, which makes gauging the severity of the downturn difficult.
The latest data we could find on home loan applications were from bond originator Betterbond. Its statistics showed that the number of applications (not the prices) declined sharply by 70% in April and fell by 30% in May, while June data looked better. But this is clearly the effect of the lockdown superimposed on the recession. If ever there has been a double whammy, this is it.
-20
-10
0
10
20
30
40
50
-60
-40
-20
0
20
40
60
80
2002 2004 2006 2008 2010 2012 2014 2016 2018
House pricesMortgage loans (smoothed)
Change
innew
mortgage
loans(%
; y-o-y)
Cha
nge
in h
ouse
price
s(%
; y-
o-y)
Change in national house prices (FNB)vs
Change in value of new mortgage loans
Source of data: FNB; SARB
r²=0,5
A significantly correlated variable of residential mortgages granted is the leading business cycle indicator of the SARB, with r² = 0,5. This indicator reflects early stirrings in the economy, thus confirming that the fundamental driver of house prices is the economy. This indicator tanked by 5,1% in April 2020 compared to March 2020, the biggest drop between months since the 1960s. This bodes ill for the housing market.
Rode’s Report 2020:2 166 House market
In the current cycle, it is unlikely that banks will relax their credit criteria further in respect of mortgage approvals. In the medium term, we expect the growth in the value of mortgages granted to head lower as effective demand1 from borrowers will be impeded by several factors:
A very weak, junk-rated economy. The economy has been in a recession since the third quarter of 2019 and is expected to contract by 6,5% in 2020, according to the June Beeld consensus forecast of leading economists. The economy will be negatively impacted by cyclical factors (such as the escalating SA fiscal crisis and the slumped world economy) and structural problems (like the quality of education and too few taxpayers). The other problem is that any sharp economic growth will be constrained by electricity supply disruptions, unless the capacity constraint can be miraculously overcome in a few years’ time under its new leadership.
The fiscal cliff.
The still-high ratio of household debt todisposable income. This ratio was at73% in the fourth quarter of 2019(latest) − up slightly from 72,7% in thefourth quarter of 2018.
1 Effective demand is a need the consumer can afford and is prepared to pay for.
Rising unemployment, worsened by theimpact of Covid-19. The unemploymentrate was already 30,1% in the firstquarter, before the crisis. Job prospectsin the medium term are poor, given thepoor outlook for the economy and theoverpopulated SOEs and public sector.Nedbank said in June 2020 that itexpects 1,6 million jobs to be lost in2020.
Rising utility costs that erode disposableincomes and the competitiveness of SAindustry.
A boost for the residential property market has been the sharp cut in short-term interest rates to the lowest in 50 years in the first half of 2020. The prime rate at the end of June 2020 stood at 7,25% ̶ 275 basis points lower than at the end of 2019. The interest rate cuts will be supportive of the market, but by far not enough to cancel out the deleterious effect of the recession, which has been compounded by Covid-19.
The strongest segment in the house market remains the more affordable houses under R1 million, and where there is no transfer duty. We also expect buyers will be moving down the price ladder due to affordability constraints, which should benefit the lower end of the market.
The weakest segment remains the luxury or top end of the market, partly as this segment was already significantly oversupplied before the crisis. Seeff said in June that it had recorded only four sales for the year to date for houses worth more than R20 million located along the Atlantic Seaboard in Cape Town. This compares to the boom time in 2016/17 when five houses were sold per month.
-80
-40
0
40
80
120
-20
-10
0
10
20
30
98 00 02 04 06 08 10 12 14 16 18 20
Mortgage loans (smoothed)Business cycle leading indicator
Change in value of new residential mortgages grantedvs
Change in composite business cycle leading indicator
Cha
nge
in v
alue
of
mor
tgag
es g
rant
ed(%
; y-
o-y)
Change
inbusiness
cycleindicator
(%; y-o-y)
Source of data: SARB
r²=0,5
Rode’s Report 2020:2 167 House market
Investors who are financially geared will benefit from the decline in interest rates, but that benefit will be offset by weaker rentals and rising vacancies. Also, in the medium term, the interest-rate risk is high for these
investors, given South Africa’s parlous fiscal position and the weak rand, because this is a recipe for cost-push inflation to rear its ugly head – a type of inflation that is not beneficial for property prices.2
2 Cost push inflation is caused by rising prices of imports (through a weak rand), giving rise to import-parity pricing
in the local market, which in turn leads to demands for higher wages.
Rode’s Report 2020:2 168 Building activity and building costs
Chapter 11: Building activity and building costs
Building activity in the doldrums Kobus Lamprecht
Building activity in the property sector was significantly lower in the second quarter of 2020 compared to last year, with April the worst hit as Covid-19 brought the economy to its knees through the strict lockdown. Activity recovered somewhat later in the quarter, but still is at very low levels.
The outlook for building activity for the rest of the year and into 2021 is also very poor as property fundamentals, like vacancy rates and rentals, will weaken further given the sharp economic contraction expected in 2020. This makes new developments unviable or at best very risky. Our detailed discussion of trends in building activity and building-construction costs follows.
Building activity
To analyse building activity, we delve deeper into the SARB’s measure of gross fixed capital formation (GFCF), building-construction data from Stats SA and building sector data from the BER at Stellenbosch University.
-30
-20
-10
0
10
20
30
40
50
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Non-residentialResidential
Growth in real gross fixed capital formationResidential vs non-residential
Gro
wth
(%;
y-o-
y)
Source of data: SARB
The SARB’s measure of GFCF represents the real value of bricks and mortar being put in place in a given period like a quarter or a year. The latest data are still for 2019. GFCF in the non-residential sector fell by 12% in 2019 – the third consecutive yearly decline and the largest drop since 1992. As for the
residential sector, building activity declined by 4% in 2019 – the second consecutive yearly decline.
Compare this statistic with buildings completed, which reflect, at the date of completion, the total building cost expected at the time the building plans were passed by the municipality, which could be a few years earlier. For instance, a building worth R100 million completed in 2019 could reflect GFCF amounting to R25 million being put in place in 2019, R50 million in 2018 and R25 million in 2017 (see the figure). Thus the ‘buildings completed’ statistic is a lagging indicator – it reflects conditions and expectations in the property market that existed up to two or three years earlier. This is especially true of non-residential building construction. In contrast, GFCF reflects a more recent occurrence and is, therefore, less of a lagging indicator as it reflects only R25 million in 2019 in the example above.
Source: Rode & Associates
With this as background, we now turn to Tables 11.1 and 11.2, which reflect building plans passed and buildings completed per square metre as reported by local government institutions (ex Stats SA). Please note that these data do not incorporate the lockdown period, which started the last week of March.
Rode’s Report 2020:2 169 Building activity and building costs
Table 11.1 New non-residential buildings
(private sector) (m²)
Offices Shopping space
Industrial buildings Total
12 months ended February 2020 (year-on-year % change) Completed 22,3% 15,8% 26,7% 23,2%Plans passed -14,6% -6,9% -16,0% -14,0%Source of data: Stats SA
Table 11.2 New residential buildings
(private sector) (m²)
Smaller than 80 m²
Larger than 80 m²
Flats & townhouses
Total
12 months ended February 2020 (year-on-year % change) Completed -12,1% -4,9% 23,6% 7,2%Plans passed 19,2% -8,8% -41,8% -21,1%Source of data: Stats SA
Non-residential buildings completed increased by 23% in the 12 months to February 2020. All sectors saw sharp growth in buildings completed, with industrial space (+27%) increasing the most, as shown in Table 11.1. Office space completed increased by 22%, while shopping space completed rose by 16%. Buildings completed are evidently a lagging indicator!
Looking at potential future non-residential activity, plans passed in square metres declined by 14% in the 12 months to February 2020, with industrial buildings down the most (-16%). Plans passed for office space (-15%) and retail space (-7%) also decreased. Less new supply will provide vital support for the oversupplied non-residential property sector given the very weak demand prospects.
Residential buildings completed rose by 7% in the 12 months to February 2020 as
shown in Table 11.2. By drilling down, we see that this increase was caused by a 24% rise in completed flats and townhouses. However, the increase slowed down significantly from the second half of 2019 onwards. Residential building plans passed decreased by 21% in the 12 months to February 2020.
We now turn to more recent data provided by the BER in its second-quarter building survey released in June. A net 90% of respondents indicated that non-residential activity was lower compared to the second quarter of 2019. This is up from 64% in the first quarter of this year (see chart). Non-residential builder confidence fell to zero, implying that for the first time ever, all – yes, all – non-residential building contractors were dissatisfied with prevailing business conditions. However, the survey was conducted during the lockdown, so maybe we shouldn’t be too surprised about this outcome.
Rode’s Report 2020:2 170 Building activity and building costs
Building activity: Non-residential contractors
Source: BER
Building activity: Residential contractors
Source: BER
Turning to the residential sector, a net 92% of respondents reported lower activity in the second quarter of 2020 compared to a year ago (see chart). A record 91% also said the lack of new demand is a constraint to business, which does not bode well for future building activity.
Thus, the outlook for residential and non-residential building activity over the short term is poor due the serious slowdown in economic activity expected in 2020.
Building-construction costs
Tender prices (BER BCI), which include input costs (like labour and materials) and the profit margin of contractors, increased by 10% year on year in the second quarter of 2020, according to the BER. This appears very high considering the lack of demand in
the sector, but because of a lack of activity in the industry this figure is based on an extremely small sample. Also, it is likely that the higher costs are mostly Covid-19 related, like getting construction sites ready after the lockdown, and putting health measures in place so people can work safely. (See Annexure 6 for historical BCI data.)
Note that throughout this report we have used a smoothed version of the BCI to cater for volatility in the index. The “smoothed” BCI increase was around 8% in the second quarter of 2020.
Rode’s six-year forecast of building activity and building-construction costs, as well as other property-related variables, is provided in our sister publication Rode’s SA Property Trends.
Annexures
Glossary of property and related terms and abbreviations
Arithmetic mean: The most often used measure of central tendency. It is the simple average of several observations. Mathematically, it is equal to the sum of all values divided by the number of observations. For example, the arithmetic mean of 6 and 7 is (6+7)/2. The arithmetic mean of 6, 7 and 8 is (6+7+8)/3; and so forth. Outlier observations may unduly affect the mean. In the Rode publications all references to the ‘mean’ or ‘average’ refer to the arithmetic mean, unless otherwise specified. See also geometric mean and median.
BER BCI: Bureau for Economic Research Building Cost Index. Measures pre-contract non-residential building-construction prices and as such it includes the profit margin of contractors. This index is one of the best indicators of the health of the building-construction industry. If it accelerates faster than input costs (measured by the Haylett Index), then contractors are stretching their profit margins as a result of sufficient work, and vice versa.
Building construction: the construction of buildings like houses, office blocks, factories, shopping centres, schools, hospitals. See also civil construction.
Bulk: Bulk square metres refer to the gross building area (GBA) of a building. According to The Sapoa Method for Measuring Floor Areas in Commercial and Industrial Buildings, GBA covers: “The entire building area, but it excludes patios, plant boxes, sun-screening, escape stairs, machine rooms, parking (basements or above ground), lift motor rooms, service rooms, caretakers’ flats, etc. GBA is mainly used by planning consultants in order to plan and execute a building in accordance with the permissible Floor Area Ratio (F.A.R) as derived from the zoning of the property. GBA is fixed for the life of the
building but it should be noted that different local authorities may interpret the National Building Regulations, which regulate the FAR definition, in a slightly different manner.” The market value of office and shopping-centre land is generally expressed as the value per bulk square metre.
Bulk head-lease: A lease that is signed with one party, which then sublets the space to other tenants.
Capitalization rate: see Standard Capitalization rate
CBD: Central business district or downtown. This is an area of concentrated high economic activity. The user may want to differentiate between the metropolitan CBD (e.g. the Johannesburg CBD) and a decentralized CBD (like the Sandton CBD).
Civils: colloquial for civil construction.
Civil construction: the construction of physical infrastructure like roads, bridges, dams, the laying of storm water pipes, electricity and water reticulation. See also building construction.
Cluster housing [trosbehuising]: Attached or detached residences grouped together in a community, normally secured by a fence and a (guarded) gate. In the stricter sense of the word, to be called cluster housing, a complex has to have common recreation areas like a swimming pool or private nature area. This layout normally results in a higher density than would be attained through a conventional subdivision layout. Tenure could be either full title (managed by a homeowners’ association) or sectional title (managed by
Rode’s Report 2020:2 I Annexure 1
Rode’s Report 2020:2 II Annexure 1
a body corporate). See also Estate housing. Cyclical trend: A short-term growth path of an economic variable. Normally refers to the business cycle, as distinct from a secular trend.
Dec: Decentralized. A Rode abbreviation. Town and regional planners differentiate between local decentralization (from the metropolitan CBD to the suburbs) and regional decentralization (to outlying areas of the country).
Deflation: Deflation occurs when prices are declining over time. This is the opposite of inflation and could be catastrophic. When the inflation rate (by some measure) is negative for a period, the economy is in a deflationary period. See also disinflation.
Deseasonalized: Seasonal fluctuations have been removed. In the case of retail sales, this is essential in order to be able to compare sales pertaining to different months of the year, as opposed to comparing sales of one quarter or month with the same quarter or month a year earlier.
Discount rate: The rate used to express an expected future cash stream in present-value terms. In most instances, the discount rate is equal to the hurdle rate. Mathematically, the hurdle rate of a property is the sum of its market capitalization rate plus the expected constant growth rate of its cash flow in perpetuity.
Disinflation: Disinflation occurs when the inflation rate is declining over time. See also deflation.
Duet house: Two attached single-family houses on one stand registered in terms of the Sectional Titles Act, which means the two units are sold and bought separately.
Escalation rate: The rate by which a rental is hiked once a year in terms of a lease. The ruling market escalation rate can be seen as an attempt by the market to forecast the growth in market rentals over the duration of the lease, but this attempt is obviously rarely successful. Thus, it is important to differentiate between an escalated rental and a market rental.
Estate housing [landgoedbehuising]: It is similar to Cluster housing, except that common-area leisure facilities are not a
requirement of the definition; not necessarily upmarket, although it does have an upmarket flavour.
Forward (income) yield: A bourse term, hence it is typically applied to listed properties. In the non-listed property market, its approximate equivalent is the capitalization rate. It represents the expected net income of year 1 (the following 12 months) divided by the current price/value. It stands to reason that existing leases would largely determine the net income of year 1. See also historic (income) yield.
Freehold title: The owner of the land enjoys free ownership in perpetuity (no land rental payable to a landlord) and can use the land for any purpose, albeit in accordance with the local regulations. Cf. Leasehold.
Full title (FT): The house or other type of building is part of an Estate or Cluster scheme and is built on a separate erf registered at the Deeds Office. The scheme is governed by a homeowners’ association rather than a sectional title body corporate. Thus, the term is used to distinguish it from Sectional title (ST). In theory, full-title homes could be built on Leasehold or Freehold land, although the former is unlikely in SA. It is, therefore, wrong to call ‘full title’ ‘freehold’, when it could in fact be full title on leasehold land; also, most, if not all, sectional title schemes are built on free-hold land.
Fundamental value (FmV): It is a subjective value based on the investor’s own, subjective forecast of rentals and maybe the investor’s unique or different in-house discount rate/capitalization rate. An FmV higher than the more objective market value (MV) is a buy signal to an investor.
The calculation of the FmV is especially indicated where the economy, or property market, changes gear, e.g. a secular change in inflation rate or the real-rental cycle bottoming out. These are instances where any market is notoriously poor at forecasting trends.
An alternative term is intrinsic value.
Geometric mean: A measure of central tendency calculated by multiplying the series
of numbers and taking the nth root of the product, where n is the number of items in the series. The geometric mean is defined only for sets of positive numbers. For example, the geometric mean of 6 and 7 is the square root of (6*7). The geometric mean of 6, 7 and 8 is the cube root of (6*7*8); and so forth. See also arithmetic mean and median.
Geometric mean return: It is also called the time-weighted rate of return or the average compounded rate of return. It is calculated by taking the geometric mean of a portfolio’s subperiod returns. Where there is a great variance in subperiod returns, this is a better return measure than the arithmetic mean return. Unlike the internal rate of return, it is not influenced by the timing and weights of money-flows.
Haylett index: A measure of the movement of all input costs in the building industry, most significantly material and labour costs. Other costs include plant and fuel. Designed to recompense the building contractor for in-contract rises in input costs. Does not include profit margins for contractors. Official designation: CPAP Haylett Formula (Work Group 180 & 181). Work Group 180 covers lump-sum domestic buildings and Work Group 181 entails industrial and commercial buildings. The Haylett index published in RR is obtained from the Medium-Term Forecasting Associates (MFA).
Historic or trailing (income) yield: A bourse term, hence it is typically applied to listed properties. It represents the net income of year 0 divided by the current price/value. See also forward (income) yield. In a market of rising net incomes, the historic yield would be expected to be lower than the forward yield.
Hurdle rate: The minimum total return (income yield plus expected capital appreciation) required by potential investors to induce them to invest in a property. Also known as the required rate. As such this is normally the correct rate to use when doing discounted cash flow (DCF) analyses. This is a similar concept to a company’s cost of capital, and it is not to be confused with the cost of money (say, overdraft interest rate). One way of measuring the total return on an investment, ex post or ex ante, is the internal rate of return (IRR) method. See
also discount rate.
Index: Describes the method of standardizing the base for comparative data in a time series, usually equating the initial measure to 100 and then expressing all other data in exact relation to that base. For instance, the index for office rentals in any year by comparison with a base-year value of 100 might stand at 90 or 110, indicating a fall or rise of 10% respectively.
Inclusionary housing: A housing programme that, through conditions attached to land-use rights approvals, requires private developers to dedicate a certain percentage of new housing developments to low-income and low-middle-income households, or to households that may not otherwise afford to live in those developments. Source: City of Johannesburg, Inclusionary Housing: Proposed Amendments, 2 August 2018
Industrial-building grades:
Prime: An industrial property (including warehouses and distribution centres) in which space is easily lettable because it satisfies each of the following prerequisites:
a. Generally, in a good condition;b. Satisfactory macro access (i.e. access
to freeway);c. Satisfactory micro access (i.e. from
street to building);d. Proper loading facilities;e. Eaves >6 m (excluding micro/ mini
units);f. Wide clear span of trusses (few
internal pillars);g. On ground level;h. Adequate three-phase electrical
power.i. Roof insulation
The nine conditions above are pre-requisites for space to be considered prime. However, a building may possess additional enhancements that could improve lettability through increasing the size of the potential tenant pool.
Such enhancements could include sufficient office accommodation, adequate parking, sprinkler systems, masonry up to sill height, adequate floor loadings and sufficient yard space.
Secondary: This is industrial spacewhich is not classifiable as prime
Rode’s Report 2020:2 III Annexure 1
because it does not satisfy all nine
prerequisites for prime space listed above. Such space is typically old buildings or structures, which have been haphazardly renovated. It would have poor access, too little yard space or office accommodation, inadequate goods lifts, no three-phase power and obsolete electrics and ablution facilities. Such space is often (but not exclusively) found in highly urbanised areas.
Comparative grading nomenclature of industrial and office space Industrial Offices
Prime + APrime BPrime - CSecondary D
Industrial park: An industrial park is a multi-tenanted complex of industrial buildings, typically surrounded by a security fence with access control and possibly some greenery.
Initial yield: The first year’s expected net operating income (based on existing leases and other income reasonably expected) divided by the purchase price. Therefore, the initial yield and the capitalization rate are only the same in those rare cases where a building is let at open-market rentals.
Internal rate of return (IRR) [interne rentabiliteit]: A performance measurement that takes cognisance of the time-value of money. Technically, it is that rate which equates the inflows with the outflows of a cash flow. Also known as the money-weighted rate of return because the timing and weights of the money-flows influence the return. Cf. geometric mean return.
JSE: JSE Securities Exchange South Africa.
Labour tenant: A person who works on a commercial farm in exchange for the right to live on that farm without compensation, as well as the right to work a portion of that farm for himself.
Leaseback: A fully repairing and insuring lease (tenant pays all operating costs) for 10 years or longer (with typically 5-yearly rent reviews or fixed annual escalations) with a tenant with a strong covenant.
Leasehold land: The leaseholder (land-lord) grants the Lessee a long lease on the land (in South Africa, typically 40-99 years), in exchange for which the tenant pays a rent stream to the landlord. At expiry of the lease, the land (together with the improvements) reverts to the leaseholder. This type of tenure is not common in South Africa, but since 1994 the government seems to prefer it when disposing of state land. Cf. Freehold.
Lessee: A tenant to whom space or land is rented under a lease. Cf. Lessor.
Lessor: A landlord that lets space to another under a lease. Cf. Lessee.
Market rental: The estimated amount for which a property would be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. [Source: International Valuation Standards, 2020]
Market value: The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion. [Source: International Valuation Standards, 2020]
The MV is an objective value in that the crucial value determinants are largely derived from the marketplace. See also price and fundamental value.
Mean: See arithmetic mean; median; geometric mean.
Median: Midpoint of a series of observations when arranged in order of magnitude. Thus, it is a measure of central tendency that divides the data set into halves. Less affected by outlier observations than the arithmetic mean. For example, the median of 5, 6, 7, 8, 9 is 7. And for 5, 9, 15, 16, 17, 21, 23 the median is 16. Cf. geometric and arithmetic mean.
Metro: Metropolitan.
Rode’s Report 2020:2 IV Annexure 1
MFA: Medium-Term Forecasting Associates, building-construction economists located in Stellenbosch.
n: Number of respondents.
N/A: Not available — fewer than two respondents.
NNN lease: Also known as a triple-net lease. A fully repairing and insuring lease (tenant pays all operating costs). The commonest example is a Leaseback. Office-building grades defined by quality of finishes and facilities (not location):
Grade A+: Generally, new, top-quality,modern buildings; ample parking; a pace-setter in establishing rentals, a prestigiouslobby finish. A minimum 4-star rating byGBCSA is a prerequisite.
Grade A: Generally, not older than 10years, unless renovated; high-qualityfinishes; adequate on-site parking; air-conditioning.
Grade B: Generally, 10 to 20 years old,unless renovated; accommodation tomodern standards; air-conditioning; on-siteparking.
Grade C: Generally, 20 to 30 years old,unless renovated; in fairly good condition,although finishes are not up to modernstandards; may have some on-site parking;unlikely to be centrally air-conditioned.
Grade D: A building reaching the end of itsfunctional life but can be used for storage;old and in poor condition; near the bottomof the rental rate range; typically, no air-conditioning and no on-site parking; mayhave good location.
These grades might be further sub-divided into sub-grades, viz. A-, B+, B-, C+ or C- for purposes of fine-tuning market rental rates.
In every issue of Rode’s Report (RR), we reflect rentals for the following sub-grades:
A+ Reported in RR tables A Reported in RR tables A- B+ B Reported in RR tables B- C+ C Reported in RR tables C-
Sub-grades not reported on, can be established by straight-line interpolation.
This schema has been appearing in Rode’s Report since 1995. At a later stage, Sapoa (following the Australian example) changed the name of grade A+ to P grade (for ‘premium’). As the reader will see, the P-name does not fit in with the above schema, and for this reason, we did not follow the Sapoa nomenclature.
The vigilant reader will notice that, in contrast to Sapoa, we do not include ‘location’ as a determinant of grading. Our point of departure is that the grading should only reflect quality of finishes and facilities. However, location does of course play a role in determining market rental rates, which is why we in RR we report on market rental rates by node (and grade).
Node: In real estate, a node is an area of intensified commercial activity, including shops and offices. In South Africa, industrial townships are also often called nodes, although this practise is not recommended.
Office demand: Office stock less office space vacant (space on the market for renting irrespective of whether there is still a valid lease over the space). In other words, demand is office space occupied.
Office stock: Total rentable office space.
Office take-up: Change in office demand. Where take-up is positive, it can also be called the growth in demand.
Office vacancies: This is the floor area available for leasing at any given time, irrespective of whether there is still a valid lease over the space. Often expressed as a percentage of the stock in rentable m².
Operating costs: See outgoings.
Opportunity cash flow (OCF): A valuation term introduced by Rode. The OCF quantifies the amount gained or foregone by the landlord in that the property is either over rented or under rented. More precisely, for each lease and the space that such a tenant occupies, it is, until expiry of such a lease, the present value (PV) of the contractual rental less the open-market rental (as at the valuation date) escalating at the open-market escalation rate (as at the valuation date).
Rode’s Report 2020:2 V Annexure 1
Outgoings (gross operating costs): In the case of office buildings, the following items are included under total gross operating expenses, irrespective of who pays for these:
Rates & taxes Cleaning of common areas External and common-area repairs &
maintenance (normalized, i.e. averaged) Common-area electricity Security Management fee (excluding head office
overheads) All leasing expenses: broker’s commission
and in-house payroll, advertising, nettenant alteration costs (normalized)
Installation or relocation expenses (unlessrecovered), buyouts, etc
Insurance (fire & SASRIA). In the case ofself-insurance, the market average shouldbe included
Audit fees
THE FOLLOWING ITEMS ARE EXCLUDED:
Head office overheads Tenants’ own electricity, water, refuse and
sewage tariffs Recovered tenant alterations or
installations. VAT.
Price: The amount actually paid for an asset. Not the same as market value, because special circumstances may have applied when the transaction was con-cluded (cf. the definition of market value).
PLS: Property loan stock, also known as variable loan stock (VLS) (type of listed property fund). (historic)
PUT: Property unit trust (type of listed property fund). (historic)
REIT: A REIT is an entity that invests primarily in real estate and qualifies for special tax status in that there is single taxation at the end-investor (not the fund) level. The Dutch term ‘fiscale beleggings-instelling’ (FBI) stresses the tax characteristic. The FBI is the world’s oldest fiscally transparent investment structure for property (since 1969). Source: https://www.vastgoedmarkt.nl, published 16/11/2017.
Rental: Basic rental (base rental in the USA):
A set amount used as a minimum rent in
a lease which also employs a percentage of turnover or other allocation for additional rent.
Gross rental: The total rental payableby the tenant, excluding VAT, thetenant’s own electricity and other utilitycharges, but including other operatingcosts (see Outgoings) recovered bythe landlord, such as rates and taxes.In the case of case of shopping centres,promotion expenses is included in thegross rental. See also rental, net.
Net rental: The amount payable by thetenant, excluding VAT and excluding operating costs recovered by the landlord (if any). See also rental, gross.
Nominal rental: This has a dualmeaning:o Firstly, it refers to rentals where
the analyst or valuer assumes noincentives like a rent-free period,free relocation, cash upfront, or
o balance-of-installation allowance. Italso excludes amortisation of tenant-installation costs.
o Secondly, it can also mean actualrental values (i.e. not deflated). Seealso rental, real.
Parking types: Detached open parking: parking bay is
detached from the main building and withno cover.
Detached shade-net parking: parking bayis detached from the main building withshade-net cover.
Detached covered parking: parking bay isdetached from the main building and hasa solid roof.
Structured parking: parking formsinherently part of a structure (forinstance, the main building). It couldbe in the basement, in an abuttingparkade or on the rooftop (where it couldbe open or covered).
Pioneer rental: The highest rentalachieved – and could be a once-off outlierdeal; hence “pioneer” is not “market”.The difference between pioneer andthe highest market rentals may beused as a blunt tool to gauge theprospects for market rental growthin the short term. If the differentialis positive, it is an indication of growthprospects in the node. If the differentialis negative, it is an indication thatlandlords are finding it difficult to findnew tenants at the asking rental rate.
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Real rental: Deflated rental, typicallyobservations (values) over time (a time
series) from which the relevant inflationhas been removed. See also rental,nominal.
Rent-free period: No rent is payable by the tenant for an initial portion of the term of a lease. It is offered by a landlord as a rental concession to attract tenants. Measure the rent-free period at the start of beneficial occupation.
Required rate of return: see hurdle rate.
Retail price: In the context of property syndication, this means the price at which a property-holding company’s shares are sold to the public or the price at which these shares trade. See also wholesale value.
RR: Rode's Report on the South African Property Market, a quarterly journal for the professional property practitioner.
Sapoa: South African Property Owners Association.
SARB: South African Reserve Bank (viz. the central bank)
Sectional title: A type of property ownership method whereby ‘sections’ of a building, or a complex of buildings, are created to allow for each ‘section’ of the building to be individually owned. In Australia it is known as ‘strata title’, and in North America and Europe as ‘condo-minium’ (condo) (also, Eigentumswoh-nung in Germany).
Secular trend: A long-term growth path of an economic variable, around which there might be short-term (business cycle) or other fluctuations. See also cyclical trend.
Shopping-centre configurations:
Mall: Typically enclosed with commonwalkway between two facing strips ofstores. This is the design mode for superregional, regional and most communityshopping centres.
Strip centre: Is an attached row ofstores or service outlets managed as acoherent retail entity, with on-siteparking, usually located in front of thestores. Store-fronts may be connected byopen canopies, but there are no enclosedwalkways linking the stores. Storeconfiguration is either a straight line, “L”
or “U” shaped. This is the design mode for most neighbourhood, convenience and value (USA: power) centres.
Street-front shop: as the name implies,a shop that fronts on the street. In the UKknown as a high-street shop.
Shopping centre types:
Super regional: More than 100.000rentable m²; more than 250 stores;comparison and specialised shopping veryimportant; widest possible tenant mixwith at least seven anchor tenants; largeentertainment component such ascinema, electronic games, ice rinks.Examples are: Mall of Africa(Johannesburg); Menlyn Park (Pretoria),The Pavilion (Durban); Canal Walk (CapeTown).
Regional: 50.000-100.000 rentable m²;150-250 stores; anchors in most casestwo large supermarkets (more than 5.000m²) or one large supermarket (8.000m²); significant entertainmentcomponent like cinema, electronicgames/games arcade. Examples are: Mallof the South (Johannesburg); Forest Hill(Pretoria); Tyger Valley and N1 City Mall(Cape Town); Loch Logan Waterfront(Bloemfontein); Hemingways (EastLondon); Garden Route Mall (George).
Small regional: 25.000-50.000 rentablem²; 75-150 stores; generally serves aslarger community centre; some ofthese centres also address needs of aspecific market segment; anchor tenant islarge supermarket (bigger thanapproximately 4.000 m²); up to two orthree food anchors can be on offer in onecentre; focus of the tenant mix is oncomparative shopping in clothing andhousehold items; entertainment mainlyfocused on cinemas. Examples are: LaLucia Mall (Durban); Walmer Park (PortElizabeth); Mimosa Mall (Bloemfontein);Langeberg Mall (Mossel Bay).
Community: 12.000-25.000 rentablem²; 50-150 stores; offers a wider tenantmix than a neighbourhood centre; anchortenant one or two large supermarketsbigger than 2.500 m²; Dis-Chem andClicks are popular tenants; some mighthave cinemas; Examples are: Cosmo Mall(Johannesburg); Middestad Mall (CapeTown); Mall@Lebo (Lebowakgomo,near Polokwane); Brandwag Centre
Rode’s Report 2020:2 VII Annexure 1
20
30
40
50
60
70
80
90
93 94 95 96 97 98 99 00 01 02
A graphic portrayal of a rental time seriesQuarterly frequency
R/m
² p
er m
onth
(Bloemfontein); Beacon Bay Retail Park (East London).
Neighbourhood: 5.000-12.000 rentablem²; 25-50 stores; anchor tenant is well-known food retailer - could also be acombination of two food retailers; othertenant types are convenience retailers,such as a pharmacy, butchery,hairdresser, dry cleaner, liquor store;hardware store, small clothing stores,restaurants and takeaways, independentstores run by residents. Examples are:Kyalami on Main (Johannesburg); JeanAvenue (Pretoria), Plattekloof Village(Cape Town).
Local convenience: 1.000-5.000rentable m²; 5-25 stores; caters mainlyfor daily milk and bread purchases; theprincipal tenant is a café or grocer likeKwik Spar/OK MiniMark; could includetakeaway foods, local restaurants, DVDstores, banks and ATM facilities.Examples are: Kenilworth Corner (CapeTown); Amalinda Square (East London).
Lifestyle centre: 15.000-50.000rentable m²; not a popular format inSouth Africa; role is to offer a uniqueretail shopping and entertainmentexperience in a relaxed and attractiveenvironment. Characteristics are: avariety of dining options, inviting publicspaces including fountains and streetfurniture, an upmarket tenant mix.Examples are: Lynnwood Bridge(Pretoria); The Palms Décor and LifestyleCentre (Woodstock, Cape Town) andCape Quarter (Waterkant, Cape Town)and Willowbridge (South) in Tyger Valley(Cape Town).
Retail warehouse (big-box retailer):Stand-alone; one or two tenants;2.000-15.000 m²; air-conditioned, noceiling, warehouse-like finishes, e.g.Makro, Builders Warehouse and Game.
Value centre: Multi-tenanted stripcentre; 10.000-50.000 m²; warehousetype finishes to deliver lower prices toconsumers. Examples are FourwaysCrossing (Johannesburg); Moffet RetailPark (Port Elizabeth); Capegate ValueCentre (Cape Town).
Smoothing: Removal of shorter-term
fluctuations in a time series, by e.g. moving averages, exponential smoothing, or curve fitting.
Standard capitalization rate: It is the expected net operating income for year 1, assuming the entire building is let at open-market rentals, divided by the purchase/ transaction price, normally expressed as a percentage. This calculation ignores VAT, transfer duty and income tax, and assumes a cash transaction (in contrast to a paper-based sale).
Standard deviation (SD): A measure of dispersion in a set of data. For instance, assume a normal distribution of observations and a mean of R10 and an SD of R1,50. This means there is a 68% chance the values will lie between R10- R1,50=R8,50 and R10+R1,50=R11,50.
Stats SA: Statistics South Africa, South African government’s statistics department. Previously known as Central Statistical Services (CSS) and even earlier as the Department of Statistics.
Through rate: Where a property consists of various components (for example office and industrial space) the through [rental] rate is the weighted average rental rate of these components.
Time series/data series [tydreeks]: A set of observations for the same variable at regular intervals (see graph). The intervals or frequencies may be of any length, e.g. years or quarters for national-income or property data, monthly for prices, and weekly, daily, or even minute-by-minute for stock exchange prices.
Rode’s Report 2020:2 VIII Annexure 1
Total return: Normally measured over a year, in which case it is the income yield for the applicable year (net income in year 1 divided by the purchase price or value in year 0) plus the change in capital value over that year. Also known as the combined return because it combines the income yield and capital return in one measure.
Town house [meenthuis]: A modern town house has a small footprint on multiple floors. In the UK it is known as a terraced house. Town houses are often found in cluster complexes. Historically, it was the (small) house of the landed gentry in town. Cf. in Afrikaans tuishuis/dorpshuis, a small house in town where farmers used to stay for Nagmaal (Communion).
Triple-net lease: see NNN lease.
VAT: value-added tax.
WALE: Weighted average lease to expiry. A metric to gauge the risk of a portfolio of properties going vacant. Measured in years.
Wholesale value: In the context of property syndication, this means the estimated price that a share or shares of a syndicated property-holding company would fetch (excluding winding-up costs) should the holding company be dissolved, and the underlying property sold as a normal, non-syndicated property. See also retail price.
Year-on-year (y-on-y) growth: Rate by which a figure has changed compared to a year earlier.
Year 0: Refers to the year ended at the present time.
Year 1: Refers to the period from year 0 to the end of the first year thereafter.
References:
1. International Council of Shopping Centres2. Bureau of Market Research, University of South Africa3. Sapoa4. International Valuation Standards, 2020
Rode’s Report 2020:2 IX Annexure 1
Rode’s Report 2020:2 Annexure 2X
Technical background to the Rode surveys Rode has been surveying the crucial variables of the property market in South Africa since the beginning of 1988 using the expert-panel method. Broadly speaking, the researcher has two potential approaches available to him. These are:
o Track actual transactions, like therental levels of lettings or thecapitalization rates at which sales areconcluded. Valuers (appraisers) callthese ‘comparables’.
o The expert-panel method of surveying,in which the surveyor regularly asks thesame individual members of the panelfor their expert opinions, which in turnwill of course be based on actual dealsof which the panellists are aware.
The cons of tracking actual transactions are: o A paucity of transactions in most nodes,
making statistical inferencesimpossible.
o Hence the danger of relying on outlierdata (mainly the result of smallsamples)
o Dated transactionso The costo The unwillingness of the parties to
report the details of individual deals.
In contrast, through the expert-panel method of research, most of the above cons of the actual-transactions approach are addressed through opinion surveys. This results in cheaper, more accurate and timely information. Sample size is still (and will always be) a problem in some of the less active nodes, but to a lesser extent.
Below we give the reader some insight in our survey approach to determine the levels of the various property variables:
Capitalization rate: The Rode capitalization rate panel consists of two categories of panellist — major owners, and
leading investment brokers who know their market segments intimately. This means that the latter's knowledge is based on actual sales. The question put to these carefully chosen panellists is:
Owners/Brokers: “In your opinion, what is presently the capitalization rate at which your organization is equally happy to buy or sell the properties in the cities below? (Assume a typical location and a cash sale, rather than paper.). For leasebacks, assume the escalation rate reported by you in this questionnaire.”
Escalation rate (for industrial lease-backs). The question put to the panellists is:
Owners/Brokers: “In your opinion, what is the current prevalent (i.e. most often achieved) market escalation rate for prime industrial leasebacks (assume the market capitalization rate you provided in this questionnaire)?”
Office rentals: The Rode office rental survey asks respondents to supply average market rentals by grade (grades A+, A, B & C) for a specific office node.
The question put to the panellists is:
“In your opinion, what is presently the nominal gross achievable/market rental (not asking rent, not escalated contractual rents, not exceptional deals) per rentable m² excluding VAT?” The questionnaire also asks for the typical rent-free period in months, the gross current-year operating costs per rentable m² and the predominant escalation rate on net & gross rentals, and operating costs.
‘Nominal’ rental means the panellist has to assume no incentives like a rent-free period. Industrial rentals: The question put to panellists is: “In your opinion, what are the current gross achievable/market rentals per m² (NOT asking rent, NOT exception deals, NOT
Rode’s Report 2020:2 XI Annexure 2
escalated contractual rents) for prime industrial buildings for the industrial nodes and floor-area sizes indicated below? (Exclude VAT.)”
The assumed floor area sizes are: 250 m², 500 m², 1 000 m², 2 500 m² and 5 000 m². Respondents are also asked to fill in their vacancy estimate for prime industrial space, using a scale of 1 to 9. See the table below for detail on the vacancy scale.
Vacancy scale for industrial nodes
<5% 5 – 10% >10%
1 2 3 Low
4 5 6 Medium
7 8 9 High
Thus, the reported vacancies do not represent percentages.
Industrial land values: The question put to panellists is:
“In your opinion, what are the current
market values per m² (NOT asking price, NOT exception deals) for vacant, serviced levelled stands in the industrial nodes and for the stand sizes indicated below? Exclude transfer costs and VAT. Provided you are well informed, please give us your opinion even though you might not have concluded a sale for the exact sizes.”
The information is required for stand sizes of 1’000 m², 2’000 m², 5’000 m² and 10’000 m².
Flat rentals: The question put to panellists is:
“In your opinion, what are the current market rentals (not asking rent) for new lettings for uncontrolled standard and upmarket flats in the following categories and areas? The rental data required is for unfurnished flats, excluding water and electricity. Parking is typically included.”
Respondents are asked to provide rentals for bachelor, 1-, 2- and 3-bedroom units. Note that the flat rentals are not quoted per m².
Rode’s Report 2020:2 XII Annexure 3
How to interpolate industrial rental rates and land values
The industrial rental and land value tables in the body of the RR contain regression equations in natural log (ln) form in order to allow the reader to interpolate rental rates or industrial land values for area sizes other than those given in the tables. (All references below are to the industrial rental tables. However, they also apply mutatis mutandis to the industrial land value table.)
The regression equations are in natural log (ln) form because the relationship between the rental rates and area sizes leased, is curvilinear. This means that the rental rate for area sizes other than those quoted cannot be calculated by straight linear interpolation. In order to calculate the rental rate for an area size other than those quoted, use the following equation from the tables:
ln Y = a + b(ln X), where: ln Y = the natural log of the rental rate, i.e. the value which we want to calculate. ln X = the natural log of the applicable floor area in m² for which we want to calculate the market rental rate.
Note that a and b are given in the table. The coefficient of determination r2 is an indication of the goodness of fit of the curve, i.e. how much confidence we can
put in the interpolation we want to perform. An r2 close to 1 is a good fit.
An example:
Interpolate a rental rate for an area size other than those quoted in the table — e.g. for an area of 750 m². Use your financial calculator and proceed as follows:
Assume the following equation:
ln Y = 3,8855 — (0,2263 (ln X)) where X = 750 m².
Step 1: Calculate the natural log of X, viz. the floor area for which you want to interpolate the market rental rate. The natural log of a floor area of 750 m² is 6,6201 (use the ln key of your financial calculator).
Thus:ln Y = 3,8855 — (0,2263 (6,6201))
= 3,8855 — 1,4981 = 2,3874
Step 2:
In order to calculate Y, get the exponential of ln Y (viz. of 2,3874) by using the ex key on your financial calculator. The answer is R10,89 per m².
Rode’s Report 2020:2 XIII Annexure 4
Approximate building cost rates as at 1 July 2019 Source: AECOM AFRICA PROPERTY AND CONSTRUCTION COST GUIDE 2019/20
This section provides a list of approximate inclusive building cost rates for various building types in South Africa.
Rates are current to 1 July 2019, and therefore represent the average expected building cost rates for 2019. It must be emphasised that these rates are indicative only, and should be used circumspectly, as they are dependent on upon several assumptions. The area of the building expressed in m² is equivalent to the ‘Construction Area’ where appropriate, as defined in the ‘Method for Measuring Floor Areas in Buildings, Second Edition’ (effective from 7 November 2007), published by the South African Property Owners Association (SAPOA).
Construction cost normally vary between the different provinces of South Africa. Costs in parts of the Western Cape and KwaZulu-Natal, specifically upper-class residential, for example, are generally significantly higher than in Gauteng due to the demand for this type of accommodation. Rates have, therefore, been based on data received from Gauteng, where possible. Be mindful that cost differences between provinces at a given point in time are not constant, and may vary over time due to differences in supply and demand or other factors.
Rates include the cost of appropriate building services, e.g. air-conditioning, electrical, etc. but exclude costs of site infrastructure development, parking, any future escalation, professional fees and value-added tax (VAT).
Rode’s Report 2020:2 XIV Annexure 4
Building rates Rates include the cost of appropriate building services, e.g. air-conditioning, electrical, etc. but exclude costs of site infrastructure development, parking, any future escalation, professional fees and VAT.
Offices 1. Low-rise office park development with standard
specification/m² R8.000 – R9.800
2. Low-rise prestigious office park development /m² R10.300 – R15.3003. High-rise tower block with standard specification /m² R11.500 – R15.3004. High-rise prestigious tower block /m² R15.300 – R19.200Parking 1. Parking on grade, including integral landscaping and
ground preparation /m² R500 – R6002. Structured parking /m² R3.900 – R4.2003. Parking in semi-basement /m² R4.200 – R5.8004. Parking in basement /m² R4.500 – R7.000Retail 1. Local convenience centres (not exceeding 5.000m²) /m² R7.900 – R10.3002. Neighbourhood centres (5.000m² - 12.000m²) /m² R8.500 – R10.9003. Community centres (12.000m² - 25.000m²) /m² R9.300 – R12.0004. Minor regional centres (25.000m² - 50.000m²) /m² R10.300 – R12.7005. Regional centres (50.000m² - 100.000m²) /m² R10.900 – R13.2006. Super regional centres (exceeding 100.000m²) /m² R11.500 – R14.900
Note: Super regional centres and regional centres are generally inward trading with internal malls, whereas convenience, neighbourhood and community centres are generally outward trading with no internal malls. Retail rates include the cost of tenant requirements and specifications of national chain stores. Retail costs vary considerably depending on the tenant mix and sizing of the various stores. Industrial Industrial warehouse, including office and change facilities within the structure area: 1. Steel frame, steel cladding and roof sheeting (light-
duty)/m² R3.900 – R5.800
2. Steel frame, brickwork to ceiling, steel cladding aboveand roof sheeting (heavy-duty)
/m² R4.500 – R6.500
3. Administration offices, ablution and change room block /m² R7.400 – R9.4004. Cold storage facilities /m² R13.800 – R19.600Residential 1. Site services to low-cost housing stand (250m² -
350m²) /site R50.000 – R80.000
2. RDP housing /m² R2.000 – R2.3003. Low-cost housing /m² R3.000 – R5.2004. Simple low-rise apartment block /m² R7.300 – R10.1005. Economic duplex townhouse /m² R7.300 – R10.4006. Prestige apartment block /m² R13.900 – R21.5007. Private dwelling houses:
Economic /m² R5.200 Standard /m² R6.500
Rode’s Report 2020:2 XV Annexure 4
Middle Class /m² R7.900 Luxury /m² R11.200 Exclusive /m² R17.600 Exceptional (‘Super luxury’) /m² R27.000 – R56.000
8. Outbuildings /m² R3.700 – R5.3009. Carport (shaded):
Single /no. R4.400 Double /no. R8.600
10. Carport (covered): Single /no. R7.000 Double /no. R12.800
11. Swimming pool Not exceeding 50kl /no. R93.000 Exceeding 50kl and not exceeding 100kl /no. R86.900 – R153.000
12. Tennis court Standard /no. R380.000 – R517.000 Floodlit /no. R457.000 – R650.000
Hotels 1. Budget /key R620.000 – R1.000.0002. Mid-scale (3 Star) /key R1.000.000 – R1.500.0003. Upper scale (4 Star) /key R1.500.000 – R2.100.0004. Luxury (5 Star) /key R2.100.000 – R3.000.000Studios 1. Studios: dancing, art exhibitions, etc. /m² R13.800 – R19.600Conference Centres 1. Conference centre to international standards /m² R25.000 – R32.000Retirement Centres 1. Dwelling house
middle class /m² R8.200 luxury /m² R11.500
2. Apartment block middle class /m² R8.400 luxury /m² R13.000
3. Community centre middle class /m² R11.000 luxury /m² R16.100
4. Frail care /m² R13.000Schools 1. Primary school /m² R6.500 – R7.5002. Secondary school /m² R7.800 – R8.300Hospitals 1. District hospital /m² R26.900Note: Hospital rates exclude allowances for furniture, fittings and equipment.
Stadiums 1. Stadium to PSL standards /seat R34.000 – R52.000
Rode’s Report 2020:2 XVI Annexure 4
2. Stadium to FIFA standards /seat R78.000 – R103.0003. Stadium pitch to FIFA standards /pitch R22.000.000 –
R26.000.000Prisons 1. 1.000 Inmate prison /inmate R582.000 – R619.0002. 500 Inmate prison /inmate R619.000 – R693.0003. High/maximum security /inmate R924.000 – R1.238.000
Infrastructure airport development costs Rates exclude any future escalation, loss of interest, professional fees, VAT and ACSA direct costs. Apron stands (incl. associated infrastructure) 1. Code F stand (85m long x 80m wide =
6.800m²) /m² R5.100
2. Code E stand (80m long x 65m wide =5.200m²)
/m² R5.400
3. Code C stand (65m long x 40m wide =2.240m²)
/m² R6.800
Taxi lanes (incl. associated infrastructure) 1. Code F taxi lane (101m wide) /m R169.0002. Code E taxi lane (85m wide) /m R143.5003. Code C taxi lane (49m wide) /m R83.000Service roads 1. Service road (10m wide) /m R17.0002. Dual carriage service road (15m wide) /m R22.000Taxi ways (incl. associated infrastructure) 1. Code F taxi way (70m wide) /m R121.000Runways (incl. associated infrastructure) 1. Code F runway (3.885m long x 60m wide =
233.100m²) /m R281.000
Parking (excl. bulk earthworks) 1. Structured parking /bay R186.0002. Basement parking /bay R283.000Perimeter fencing/ Security gates 1. Security walls with perimeter intrusion detection
(PIDS), etc. /m R8.600
2. Security gate /no. R16.2003. Super security gate /no. R48.500Terminal & other buildings (excl. bulk earthworks, external site & services works) 1. Terminal building (excl. terminal building
baggage & X-ray)/m² R28.700
2. Pier terminal building (excl. telescopic airbridges, seating & aircraft docking system)
/m² R30.100
3. Telescopic air bridges /unit R11.000.0004. Aircraft Docking System /unit R1.620.000
Building services Electrical installation 1. Office buildings — standard installation /m² R575 – R800
Rode’s Report 2020:2 XVII Annexure 4
2. Office buildings — sophisticated installation /m² R800 – R1.0503. Office buildings – UPS, substations, standby generators /m² R375 – R5254. Residential /m² R525 – R8005. Shopping centres /m² R800 – R1.0506. Hotels /m² R900 – R1.2007. Hospitals /m² R1.250 – R1.700Electronic installation 1. Offices - standard installation /m² R375 – R525
2. Offices – sophisticated installation /m² R525 – R750
3. Residential /m² R325 – R500
4. Shopping centres /m² R750 – R950
5. Hotels /m² R700 – R900
6. Hospitals /m² R750 – R950
Note: Electronic installation include access control, CCTV, public address, fire detection, data installation, WiFi, CATV, PABX (Private Automatic Branch Exchange) and Building Management Systems (BMS). Fire protection installation 1. Sprinkler system including hydrants and hose
reels (excluding void sprinkler) /m² R275 – R375Air-conditioning installation 1. Ventilation to parking/services areas /m² R425 – R5752. Office buildings: console units /m² R800 – R1.0003. Office buildings: console/split units /m² R950 – R1.4004. Office buildings: package units /m² R1.275 – R1.9005. Office buildings: central plant /m² R1.850 – R2.9006. Office buildings: Variable Refrigerant Flow /m²� R1.700 – R2.9007. Residential: split units /m² R950 – R1.5008. Shopping centres: split units /m² R1.050 – R1.5009. Shopping centres: package units /m² R1.275 – R1.90010. Shopping centres: evaporative cooling /m² R800 – R1.17511. Hotels: public areas /m² R1.850 – R2.90012. Hospitals central plant /m² R2.400 – R3.75013. Hotels: console units /key R20.000 – R27.50014. Hotels: split units /key R27.500 – R42.00015. Hotels: central plants /key R63.000 – R90.00016. Hospitals: operating theatres /theatre R525.000 – R850.000
Rode’s Report 2020:2 XVIII Annexure 4
Notes
1. Regional variations: Construction costs normally vary between the different provinces ofSouth Africa. Costs in the Western Cape and KwaZulu-Natal, specifically upper classresidential, for example, are generally significantly higher than Gauteng due to the demandfor this accommodation.
2. Value added tax (VAT): As the majority of developers are registered vendors in the propertyindustry, any VAT on commercial property development is fully recoverable. Therefore, toreflect the net development cost, VAT should be excluded. Should the gross cost (i.e. afterVAT inclusion) be required, the VAT at the ruling rate (currently 15%) should be added.
Cognizance should be taken, however, of the effect of VAT on cash flow over a period oftime. This will vary according to the payment period of the individual vendor. In all cases,however, it will add to the capital cost of the project to the extent of interest on outstandingVAT for the VAT cycle of the particular vendor.
3. For guidance with regard to the cost of buildings rated under the Green Star South Africarating tool system, see the latest edition of the AECOM publication entitled “Quick Guideto Green Design Attributes.”
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Rode’s Report 2020:2 XIX Annexure 5
BER Building Cost Index (non-residential tender prices)
2016 = 100
First quarter
Second quarter
Third quarter
Fourth quarter Average
2013 81,3 78,8 82,4 81,7 81,1 % ch 11,6 6,1 7,4 4,2 7,2 2014 85,2 88,7 90,9 92,4 89,3 % ch 4,8 12,6 10,3 13,1 10,2 2015 94,2 90,9 92,6 93,8 92,9 % ch 10,6 2,5 1,9 1,5 4,0 2016 92.7 98,1 100,6 99,2 97,6 % ch -1,7 7,8 8,6 5,8 5,1 2017 101,6 101,1 104,9 104,2 102,9 % ch 9,6 3,1 4,3 5,0 5,4 2018 111,0 110,2 112,4 111,0 111,1 % ch 9,3 9,0 7,1 6,6 8,0 2019 114,6 115,9 116,6 118,3 116,3 % ch 3,2 5,2 3,7 6,5 4,7 2020 121,2 127,2% ch 5,8 9,8Source: The data is from the Building Cost Report of the Bureau for Economic Research (BER), tel. 021 808 9780, and is published with its permission.
Rode’s Report 2020:2 XX Annexure 6
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9,25
9,
25
9,50
9,
50
9,50
9,
50
9,75
9,
75
9,4
2
20
16
10
,25
10,2
5 10
,50
10,5
0 10
,50
10,5
0 10
,50
10,5
0 10
,50
10,5
0 10
,50
10,5
0 1
0,4
6
20
17
10
,50
10,5
0 10
,50
10,5
0 10
,50
10,5
0 10
,25
10,2
5 10
,25
10,2
5 10
,25
10,2
5 1
0,3
8
20
18
10
,25
10,2
5 10
,00
10,0
0 10
,00
10,0
0 10
,00
10,0
0 10
,00
10,0
0 10
,25
10,2
5 1
0,0
8
20
19
10
,25
10,2
5 10
,25
10,2
5 10
,25
10,2
5 10
,00
10,0
0 10
,00
10,0
0 10
,00
10,0
0 1
0,1
3
20
20
9,
75
9,75
8,
75
7,75
7,
25S
ourc
e: I
HS M
arki
t
*Ind
ivid
ual m
ortg
age
rate
s w
ill d
epen
d on
the
cre
ditw
orth
ines
s of
the
mor
tgag
or.
Rode’s Report 2020:2 XXI Annexure 7