select
|

Office vacancy rate - latest figures

According to SAPOA Office vacancy latest survey of 2012, which now covers just under 15.1 million m² of stock across 50 commercial nodes, the national office vacancy rate stabilised somewhat in Q1 2012.

The latest SAPOA Office Vacancy Survey, compiled by IPD, sheds a degree of positive light on an office sector that continues to operate in a challenging market with vacancies generally above natural levels.

The national office vacancy rate stabilised somewhat in Q1 2012 following marginal yet steady growth over the previous four quarters. While this was only a very slight improvement of just 2bp and conditions for the office sector remain tough, it indicates that some nodes are showing improvement while overall vacancy rates may be beginning to level out.

Prime space continues to outperform lower grade stock, especially in prime decentralized nodes where most areas saw an improvement this quarter. The P grade vacancy rate is currently a low 1.67% while A grade space saw a marginal increase to 8.73%. The largest improvement was realised by C grade space which fell by nearly 2% to 16.41% in line with continued office-to-residential conversions and some demand for C grade space, particularly from call centre operators. The vacancy rate of B grade office space has remained relatively flat over the past two quarters and currently sits at 12.60%.


In terms of cities, Johannesburg and Port Elizabeth saw some improvement while Pretoria, Durban and Cape Town continued on their current trend of increases. All these movements were less than 1% though, supporting the view that a flattening of vacancy rates is developing.


The economic outlook for the year ahead is less than favourable with low growth expected for the year ahead and as a result the office market is unlikely to experience any significant improvement in the short term. However, while a degree of uncertainty persists in the economy and therefore the office market, overall vacancy rates appear to be stabilising somewhat which suggests that they may be approaching the bottom of the current cycle



  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK