Real Estate Investor Magazine South Africa April 2016 | Page 39

Springfield, Riverhorse and Briardene in the central
areas and Westmead, Pinetown and New Germany
in the west.
Some of the key drivers of demand are facilities with
sufficient power, yard space and adequate internal
stacking height.
“Asking rentals within these established nodes are
proving far more attractive than what new ‘greenfield’
developments can offer as a result of land costs which
are driving up asking rentals,” reports Binedell.
However, the N3 Western Corridor, which includes
Hammersdale and Cato Ridge, is an exception.
Striving for improved efficiencies and cost savings,
national retailers such as Mr Price, Massmart, Bata
and Pick ‘n Pay are consolidating their different
distribution centres into major distribution hubs.
Here too the emphasis is on smaller floor area but
larger volume. The desirable specifications include
features such as 20m ceilings, super-flat laser screed
floors, high-tech racking with in-rack sprinklers and
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generous hardstand yards. “In KwaZulu-Natal, there
is a distinct undersupply, and genuine demand, for
these types of logistics facilities,” Binedell points out.
When it comes to the undersupply of logistic space in
Durban, the government has progressed significantly
in addressing congestion within the port. While the
strategic plan for this area is a 10-year project, it is
important to know where infrastructure spend is
going to take place and where the priorities lie.
Meanwhile, in the Western Cape, “Investors and
users are starting to move beyond the traditional
industrial nodes because of the availability of land,
less traffic congestion, improved road infrastructure,
more palatable rentals and the ability to deliver
specially tailored premises,” notes Binedell.

RESOURCES
Growthpoint Properties
APRIL 2016 SA Real Estate Investor

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