Commercial and Industrial property in high demand - Midvaal
- 23 Mar 2012
As a key link between Pretoria, Greater Johannesburg, the Vaal Triangle, the Free State, and all other major routes leading to all major cities in the country, Midvaal is endorsed and promoted by local government as the future spatial economic development initiative to invest in.
Situated alongside the R59, the area is said to display potential for growth similar to Midrand due to its natural prime location, availability of water and coal, and high volumes of passing trade. Hence, the area is home to various well-known industrial facilities, including Heineken Breweries, BSI Steel, Tongaat Hulett Starch and Samancor, to mention but a few.
Commercial space to rent
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The uptake of manufacturing, workshop, trading and office space in commercial parks such as Midvaal Commercial Park situated at the Johan le Roux bridge on route from Johannesburg to Meyerton and Vereeniging is indicative of the area’s current appetite for future economic growth. The first phase of Midvaal Commercial Park saw a record uptake of tenants from November 2011 until March this year, indicating that commercial space, especially those with ample power and electricity supply, is high in demand.
While Midvaal Commercial Park property owner and developer, Louis Taljaard, attributes the strong uptake of commercial space to the high visibility of the Park alongside the R59 and the fact that it has ample power supply, Taljaard says that tenants also like the tailor-made commercial space package deals where tenants can choose any one of, or a combination of the following e.g. workshop, trading, manufacturing, showroom, storeroom, and yard space etc.
Currently, prices for commercial space for rent in the area typically range from R30 – R38.50 per m2 for office; R20 – R28.50 per m2 for workshop; R35 – R75 per m2 (depending on exposure and visibility) for showroom; and R6.50 - R8.50 for yard space.
Next to power supply; location fuels demand for industrial properties for sale
With an average of two to five industrial property sales requests per day in the Midvaal area alone, Taljaard says investors are competing to buy properties with ample power supply given the high cost associated with installing power and the shortage thereof currently experienced in the country. “In most cases, when having to install power, the cost of relocating your business to an industrial site with ample power, is less than having to install power at a new development. Therefore, many industrial and commercial businesses are relocating or buying into existing serviced industrial sites in Midvaal at the moment,” he says.
One of the investment opportunities currently available in the Midvaal industrial development area with ample power and water supply, parking, security and yard space includes 7 500m2 of land, with 3 200m2 of improvements, consisting of workshop and office space, which is easily accessible from all major routes to and from Midvaal.
Investors can expect to pay from R11.5 million upwards for this property which has an existing tenant. “The fact that the industrial properties and surrounds are well serviced and maintained by the Sedibeng District Municipality, which is committed to fuelling economic growth in Midvaal area, is an added benefit,” concludes Taljaard.