{"id":12101,"date":"2021-06-14T16:53:21","date_gmt":"2021-06-14T16:53:21","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/?p=12101"},"modified":"2021-06-14T16:50:47","modified_gmt":"2021-06-14T16:50:47","slug":"commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts","title":{"rendered":"Commercial property in all sectors is stronger at the coast than inland, say experts"},"content":{"rendered":"

Africa-Press<\/a> – South-Africa<\/a>. <\/strong><\/span>*This article first appeared in our Property360 digital magazine<\/p>\n

Commercial property in South Africa\u2019s coastal regions appears to be doing better than its inland counterparts \u2013 and this is the case for all the sectors: industrial, retail and even office property.<\/p>\n

Semigration could be one of the the reasons for this. FNB\u2019s property broker surveys show that Johannesburg is the weakest metro, says commercial property economist John Loos.<\/p>\n

\u201cIt is still early days, so it is difficult to know exactly why this is the case but there is talk of notable semigration to the coast.\u201d While such domestic relocation has not skyrocketed, he says the \u201cZoom boom\u201d is keeping the trend going.<\/p>\n

\u201cI think that the Western Cape \u2013 not just Cape Town but the southern Cape and outlying towns in the province \u2013 has a lot to offer to affluent and highly skilled members of the workforce because they can increasingly work more remotely. They do not need to be in the Cape Town, Joburg or Sandton CBDs that often, so those outlying towns can do particularly well.\u201d<\/p>\n

Read the latest Property360 digital magazine below<\/b><\/p>\n

Loos says this is driven by the residential purchasing power that boosts such economies, and can be seen in the likes of Somerset West, Hermanus and George, which have seen their economies doing better growth-wise than the big cities.<\/p>\n

\u201cAnd this could mean that, although these towns\u2019 commercial property markets are small, they could be the outperformers. Even KwaZulu-Natal\u2019s North Coast towns, like Umhlanga and Ballito, can benefit from the Zoom boom as it helps to sustain semigration.\u201d<\/p>\n

While the economy is still weak, he says the country\u2019s manufacturing sector has seen a slight comeback.<\/p>\n

\u201cThe inventory build-up has not been huge but there is quite a lot of optimism around logistics and e-commerce which, in a big way, seems to be driving demand for industrial space.\u201d<\/p>\n

This sector will therefore be the least oversupplied of all commercial property, although it will not go as far as to be undersupplied. Gary Vos, franchisee of Rawson Cape Metropole Blaauwberg Commercial, says industrial and warehousing vacancy levels in the area have increased by 30% compared to this time a year ago.<\/p>\n

\u201cWe are finding that rentals have picked up and we have received a slight increase in enquiries for rentals,\u201d he says. Properties between 200m\u00b2 and 500m\u00b2 are very popular, while bigger properties stand vacant for a lot longer.<\/p>\n

\u201cUsually, 1000m\u00b2 to 2000m\u00b2 properties would find a tenant in one or two months once they have been listed. But now we are seeing them stand vacant for six months and up to a year.\u201d<\/p>\n

Rental prices in the Blaauwberg industrial market have come down by 10% to 15%, says Vos, and this could be because tenants who have been renting industrial properties for many years have negotiated lower rents with their landlords.<\/p>\n

\u201cTenants are very aware of the rent per square metre within industrial areas and they are not afraid to use it as a negotiating tool. Tenants may ask the landlord to bring the rent down to the current market rental value or they will find something else.\u201d<\/p>\n

Overall tenant payment performance in the commercial property market since the hard lockdown continues to improve monthly, says TPN chief executive Michelle Dickens.<\/p>\n

Commercial tenants in good standing increased to 62.52% in the first quarter of this year. \u201cGood standing refers to a tenant whose account with their landlord is fully up to date, including repayment of all arrears. Commercial landlords are accustomed to 80% of their portfolio in good standing.\u201d<\/p>\n

However, while prior to lockdown only 5% to 6% of commercial tenants did not pay their rent, the hard lockdown saw 20% of tenants skipping rental payments. During the past three quarters post-lockdown, the number of non-paying tenants has stabilised at 12%.<\/p>\n

\u201cThe reality for commercial landlords is rent deferrals will continue to hamper the recovery of the number of tenant in good standing as tenants in the \u2018partial paid\u2019 category slowly pay off their arrears.<\/p>\n

\u201cFrom the lowest point of 30% of tenants only settling part payments to a current figure of 24% of tenants partially paid, landlords will want to see those halve to 12% as per their pre-lockdown experience.\u201d Dickens says the retail sector was the hardest hit. In May last year, only 40% of tenants were in good standing but this rebounded to 61% in March. \u201cIndustrial tenants bottomed out to 54% in May 2020 and recovered to 66% in March 2021. But the office sector takes the sting out of delinquencies with 60% in good standing in May 2020 and improving to 69% by March 2021.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. *This article first appeared in our Property360 digital magazine Commercial property in South Africa\u2019s coastal regions appears to be doing better than its inland counterparts \u2013 and this is the case for all the sectors: industrial, retail and even office property. Semigration could be one of the the reasons for this. FNB\u2019s […]<\/p>\n","protected":false},"author":84,"featured_media":12100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6,8],"tags":[274,315,275],"class_list":["post-12101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","category-homepage-english","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nCommercial property in all sectors is stronger at the coast than inland, say experts - South Africa<\/title>\n<meta name=\"description\" content=\"*This article first appeared in our Property360 digital magazine Commercial property in South Africa\u2019s coastal regions ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commercial property in all sectors is stronger at the coast than inland, say experts\" \/>\n<meta property=\"og:description\" content=\"*This article first appeared in our Property360 digital magazine Commercial property in South Africa\u2019s coastal regions ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-14T16:53:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2021\/06\/img-60c788bf21334.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"405\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Commercial property in all sectors is stronger at the coast than inland, say experts\",\"datePublished\":\"2021-06-14T16:53:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts\"},\"wordCount\":771,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2021\/06\/img-60c788bf21334.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"files\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/commercial-property-in-all-sectors-is-stronger-at-the-coast-than-inland-say-experts\",\"name\":\"Commercial property in all sectors is stronger at the coast than inland, say experts - 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