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