Commercial Guidebook | Real Estate Investor Magazine Commercial Handbook 2013 | Page 32

STRATEGIES BY GAYE DE VILLIERS Retail Demand Rising O In outlying areas utlying towns in the Eastern Cape, such as Sterkspruit – situated just before the Lesotho currently seeing more positive economic sentiment. Generally, we are experiencing a very low vacancy rate in “Currently we are receiving a high number of enquiries for retail space in Sterkspruit and Mthatha, mainly as a result of a pent-up demand as well as growing passing trade. It also appears that national retailers, who may perhaps have saturated the market in major centres, are now looking at outlying areas with potential,” says de Lange. “In East London we are experiencing a demand for retail space in strip malls in the CBD,” adds de Lange. “Currently we have 700 sqm of B grade office space available at a market related rental of R75 per square metre per month in the well-maintained, prime located Perm building in Oxford Street.At present there are opportunities to lease space at very competitive rentals in conveniently situated locations. While purpose-built premises may be best for operational requirements and more cost effective to run, the capital outlay involved can be prohibitive. In addition, vacant land which is available for such development is usually located out of town and further from national and main roads. border, and Mthatha and Tsolo in what was formerly known as the Transkei, are experiencing an increased demand for retail space, reports Amanda de Lange, portfolio manager of JHI Properties, based in Port Elizabeth. JHI operates in the area along the Eastern Cape from Mthatha through to East London, King Williamstown, Sterkspruit and Queenstown. General improvement in market sentiment Says de Lange: “In the Port Elizabeth area we are 30 Commercial Handbook 2013 retail space in Port Elizabeth, including the Gelvandale and Kwamagxaki shopping centres. In the industrial property sector in Port Elizabeth we recently sold a 14 509 square metre property to the existing tenant. www.reimag.co.za