office space are currently driving the ongoing negative
rental growth dynamic. Increasingly, it appears that
without a return to strong GDP (and accompanying
employment) growth we are unlikely to see a break
in this cycle in the near term. On the very high
quality office space, namely ‘A’ and ‘P’ grade, we are
seeing continued strong demand, particularly in the
Rosebank and Sandton nodes. This is however not
representative of strength in the overall office market.
Many new property listings in the past 24 months
have had a similar flavour, namely office portfolios
with government tenants and BEE c &VFV?F??2BF?P???F??&B?WfV??F?W6R?7F??w2?fRW&f?&?VBvV????'F?2gV?7F????b??v??6V?V7F?fR&?6??F?FVB'?&?W'G?6????W2&Vv&F??rv??6??v?fW&??V?B'V??F??w2?BFV??G2F?W?v?B??F?V? ??'Ff???2?v???R?B?2??V?F?BF?W6Rv?fW&??V?GFV??FVB?'Ff???2v???6??F??VRF?w&?r???gWGW&R?V'2?vR??FRF?BF?R7V?6?F?????V?G2f? ?v?fW&??V?B'V??F??w2&R&V6???r??7&V6??v??6??&W76VB26??WF?F?????V?G2f?"&6V?2?`?v?fW&??V?B?FV??FVB?'Ff???2??vR6??6?VFRF?B46???W&6??&?W'G??fW&????2vV???6?F???VBF?&?f?FR7W7F??&?R??rF?V&?VF?v?B&WGW&?2f?"F?R?VF?V?FW&???fW&???ff?6P?f6?6?W2&R6??v??r6??RV?V?V?G2?b7F&??6F?????'WBF??26?V?B&RgV?7F????b&V?B?g&VRW&??G2&V??p?&?f?FVB'???F??&G2?B??vW"&V?F?2&V??r?ffW&VBF??FV??G2???F?R??GW7G&??76R?6??F??VF????b7G&??p?FV??Bf?"??v?7F?7276R?2W?V7FVBF?6??F??VR?v?F????Vf7GW&??r&V?????rF?ff?7V?B6V7F?"g&?????F??&BW'7V7F?fR???&WF??F?R?&vR&WF??6V?G&W2&P???V?F?&V???7G&??rW&f?&?W'2v?F?6???W"6V?G&W0????FRFWV?FV?B???B?v?22FVfV?6?fV??6?F???VB??46???W&6??&?W'G?6??F??VW2F?&V?Vf?Bg&?????r??FW&W7B&FRV?f?&???V?B?v??6??2???vVBf? ?w&?wF?F?&?Vv?FWfV???V?G2?B7V?6?F???26???p?????RB??V?G2F?BvW&R??B2fV6?&?R????v?W"&FP?V?f?&???V?BfWr?V'2v??gV?F??r6?7G2?f?"F??6P?v???fR??Bf??VB6?v??f?6?B?'F????bF?V?"FV'B??0?wwr?&V??r?6?????6??6W&?v?V?&FW2WfV?GV??&?6R??gWGW&R???W?fVGW&R?bF?R7W'&V?B6???W&6??&?W'G???&?WB?2?6?&Vf?V7FVB??66&6?G?f?VR?b??v?V?G????6?6?76WG2B&?6R'W?W'2v?V?B6??6?FW"f?"???"????F?f?Wr?F??2?2'F?GVRF?&??VB76WG0?&V??r6??6?FW&VB?????vW"?FW&?f?Wr'??FV?F???6V??W'2?'F?7V?&?F??6R76WG2v?F???v?6W'F??G????6??F??VVB?6?F?fR??6??Rw&?wF??B6?F??&V6?F????Wf?FV?6R??F?R?&?WBv?V?B7VvvW7@?F?BF?7V?&R7V6?76WG27W'&V?F?F?W2??BV ??fW&?GG&7F?fR??"????F?f?Wr?'WBv???&WV?&P?6?v??f?6?F????vW"??fW7F?"F??Vg&?R??6???????G&??&?W'G?6?&6?W2&V?FW2F??( ???6F??????6F??????6F???( ????FWFW&????r7V66W72???6???W&6??&?W'G??v???RF??2?2???'F?B???F?P?7W'&V?BV?f?&???V?B&VgW&&?6???r?B7V?F??rF?P??V6W76'?6?F?F?FWVFV????F??'V??F??r?0??6?W?G&V?V?&V?Wf?B??GG&7F??rF?R&?v?BFV??@??Bf????rf??G2??v?F?7W'&V?B6??6V?7W2W?V7FF???2f?"tE ?w&?wF??b"?2R??#2?B2?R??#B????FW&??????&?fV?V?B??F?R?fW&???ff?6R76R?2V???V?F??V?W&vRg&??f6?7??"&V?F?w&?wF?W'7V7F?fR?&WF???f6?6?W2??F?R?&vW"&Vv????6V?G&W2&R?&VG?B??p??WfV?2?BV???V?F?6VR6?v??f?6?BgW'F?W"??&?fV?V?B??GW7G&??f6?6?W2????Vf7GW&??r?B6?????GW7G&???V??G26?V?B6VR6??R??&?fV?V?B?'WBv?V?B&WV?&P???v?W"tEw&?wF?F??F?R?&?WB?F?6?FW2??46???W&6??&?W'G?&V???2GG&7F?fRf? ?F??6R??fW7F?'2v?F?F?R&?v?B&?W'F?W26VV???r???wFW&???V?G???6??R?B6?F?w&?wF??6??r?@?7FVG?v??2?fW"F??R????BV?F?WfW'???R?'W@?W?V7F??r6?v??f?6?B&WGW&?2??F?RfW'?6??'BFW&?v?F??WB66????r7G&??rtEw&?wF??2??B???V?66V?&???$U4?U$4U0?&V??76?6R6?F??6???W&6????F&???#0??p???