Real Estate Investor Magazine South Africa Real Estate Investor Magazine - Dec/Jan 2018 | Page 49

AUCTIONS been  modernised; the latter usually commanding premium prices. “We’ve seen much of this demand concentrated in Gauteng; the central distribution hub of the SADC region for goods moving inland from South Africa’s busiest port, which is Durban. According to Transnet, some 3  000 trucks pass through the port every day. In 2016 the cargo terminals processed more than 2.6 million standard con- tainers and much the same volume was expected for 2017. If just half of that was inbound cargo, it still needs a massive amount of warehousing space.” Van Reenen says the final definitive trend to have emerged in 2017 relates to pre-zoned land. “Whether industrial, commercial or residential, there’s competitive bidding on auction lots we offer with zoning redevelopment processes already com- plete and those properties are snapped up fast.  “It’s a good indication that a substan- tial amount of private sector money is earmarked for development projects they want to start sooner rather than later, despite the prevailing economy.” In terms of 2018, Van Reenen says while the auction sector is more immune to general property market fluctuations, much will depend on the structure of the country’s political leadership and its effect on both international and local business and investor confidence levels.  “Regardless, though, the business of business will continue next year and with it the buying and selling of property. As Winston Churchill said, ‘A pessimist sees the difficulty in every opportunity; an optimist sees the oppor- tunity in every difficulty’. I prefer to be an optimist.” CASE STUDY: ONLINE SHOPPING Liz Hillock, head of online at Woolworths, South Africa, recently revealed that the retail giant’s online clothing sales increased over 100% between July 2017 and June 2017. “This kind of growth in a strained trading environ- ment is remarkable. We’ve recently invested in a “dark store” for fashion, a dedicated warehouse from which to fulfil online orders. This helps us increase availability against increasing online demand,” she explains. SHARED WORKSPACES TAKING OVER We’ve seen the sharing economy in nearly every aspect of our daily lives: from rides, to crowdfunding, and our homes. The office has also under- gone a radical shift over the past few years. Several experts predict that co-working will become the norm in the very near future. So what does that mean for investors? “This concept is not just for millennial freelancers or tech start-ups, as many large international corporates find the trend works for them,” says Leon Breytenbach, National Manager for the Rawson Property Group’s commercial division. The transformation of under-utilised areas into shared work areas will of- fer the owner of a commercial property the opportunity to realise added income from such a space. Co-working facilities will add attraction to a building, encouraging a higher tenancy rate. Having a small business operate in shared office space allows the land- lord to build a relationship with the tenant. “As the company succeeds and grows, requiring more permanent premises, it is likely that they will choose to remain in that building, leasing a larger, long term space,” says Breytenbach. The landlord has had a chance to gauge the calibre of the tenant, so aiding his decision to retain or reject a long term application. Some examples in Sandton Central: OPEN Sandton Situated at 138 West Street opposite the Sandton Gautrain Station, OPEN is all about working, meeting and innovating and is brought to you by the same people behind OPEN Workshop 17 at the V&A Waterfront in Cape Town. It is designed for physical and virtual network and creates a community that is entrepreneurial, creative and inspiring. It offers everything from public places and the street-side OPEN Sandton Café, to co -working space, dedicated offices, meeting rooms and even at 12-seat- er tiered auditorium. FutureSpace Located at 61 Katherine Drive, opposite the landmark new Discovery building, FutureSpace takes this working trend beyond expectations, starting with co-working, virtual offices, private offices and meeting rooms, but taking it further with an executive and bespoke offering. FutureSpace is designed to encourage pro-working -- with the ‘pro’ being for professional and productive – or the older brother of co-working, which is co-working combined with service, style and hospitality. The Business Exchange (tbe) Located at 90 Rivonia Road, opposite the Sandton City, this inspiring and stylish space offers co-working, virtual offices and private offices. Its perks include a sophisticated setting and upmarket bar and lounge.  Regus To cater for the high demand, this well-known international brand offers three addresses that allow its clients the flexibility of co-working for an hour, day, week, month or years. They are: Spaces: located in Sandton City’s Atrium on 5th, it occupies the 9th floor of the fully renovated green-rated building. From private offices to co-working spaces and meeting rooms, you will find everything to suit the needs of your business. The exclusive location, with a tailored service concept, makes Spaces Atrium on 5th an energetic working environment. West Tower, 2nd Floor, Nelson Mandela Square: This five-star business centre benefits from an iconic, and easily accessible, address. 2 Sandton Drive: work in a modern presence in world-class surroundings with all the professional and practical amenities required to work in style. SA Real Estate Investor Magazine DECEMBER 2017/JANUARY 2018 47