Real Estate Investor Magazine South Africa December/ January 2018/2019 | Page 45

Average asking base rentals for office space within the core markets have remained fairly constant in the past six to eight months, ranging from approximately US$50/m²/ month to US$70/m²/month for A-grade buildings and US$33/ m²/month to US$50/m²/month for B-grade properties. It is anticipated that activity in the office market will continue to improve, albeit very gradually due to uncertainty about the economy’s growth and employment prospects. Vacancy levels are expected to rise, and with a shallow pool of existing corporates in the market, competitive leasing strategies are set to persist. Industrial market development has been much less aggressive relative to the office, retail and residential sectors, with underlying challenges such as inadequate infrastructure and stalling growth. There is a strong demand for efficient and quality industrial facilities, however, there is a mismatch between demand and supply of stock in the market. High land costs in desired locations such as Lagos, as well as weak infrastructure, reduce the sector’s investment potential. These factors reinforce the current rentals in the market, which range from US$1/m²/ month to US$6/m²/month. In Nigeria’s volatile economic state, Broll Property Intel offers vital insights into the retail, office and industrial markets of the country for both landlords and occupiers, which are key in developing effective business strategies. A digital campaign for every pocket Reach out to potential investors today Contact us now: [email protected] [phone] SOURCE: Broll SA Real Estate Investor Magazine DECEMBER 2018/JANUARY 2019 43