Commercial trumps residential
29 July 2008
Prospects for the market for commercial property are currently looking much brighter than that of residential property.
According to the latest Rode report regarding the property industry, it seems as if a strong demand exists for industrial property. This is putting upward pressure on rental amounts.
The office sector is also doing fairly well, but some shopping centres’ rental income is coming under pressure due to difficult conditions in the retail market. Read more
Tougher times loom for commercial property
24 July 2008
The retail, office and industrial properties sector is holding up better than residential property in unfavourable economic circumstances. Read more
Industrial sector seems safe refuge
23 July 2008
The best performer in commercial property is tipped to weather a recession.
A MANUFACTURING recession, which some economists have said is a possibility, may have a detrimental effect on industrial property and cause vacancies to increase. Read more
Latest Rode’s Report shows commercial and industrial markets still strong
14 July 2008
In the midst of all the doom and gloom in the South African residential property market, commercial and industrial markets are still booming according to the latest issue of the Rode’s Report on the South African Property Market. Read more
SA property sector is transparent
14 July 2008
In a world arena where transparency is increasingly valued, the SA commercial property sector now holds the 21st position in the Jones Lang La-Selle Transparency Index for 2008.
The index, which is published every second year, includes developing as well as developed property markets. SA was 13th on the list in 2006. Read more
Property: A low-risk asset class?
8 July 2008
For a long time South African investors have been handsomely rewarded for investing in property and many regarded this as a relatively “risk-less” asset class.
The property market has had a poor run and returned negative 20% for the last 12 months, and many investors are now realising the true risks of their investments.
Nic Andrew, head of Nedgroup Investments, asked three of its fund manager partners for their opinions on this asset class; whether property valuations are starting to look attractive, and whether it still offers too little reward relative to the other asset classes. Read more
How rates hit commercial property
30 June 2008
Commercial and residential property investments react differently to interest rate changes.
“When interest rates go up, people buy less and the tenants in shopping centres (the shopkeepers) suffer. If the downturn in the economy is severe, one may see a reduction in rentals and even increasing vacancies in shopping centres,” says Jurie Wessels, managing director of Capital Investments. Read more
RMB Properties restructuring
30 June 2008
Rand Merchant Bank (“RMB”) has completed a transaction to introduce a consortium comprising RMB Properties’ management, Tiso Group (“Tiso”) and Royal Bafokeng Holdings (“RBH”) to a 60% equity interest in its property services business, RMB Properties (Pty) Ltd (“RMBP”)Read more
What makes a building ‘green’?
25 June 2008
There’s currently lots of hype about ‘green’ buildings, but what exactly does it mean? An expert explains.
“Buildings are one of the heaviest consumers of natural resources and account for a significant portion of the greenhouse gas emissions that affect climate change,” says Craig Hallowes, spokesperson for the Association of Property Unit Trusts (APUT). “We have a responsibility to ensure that the built environment contributes to a turnaround in global warming.” Read more
Office rentals ‘holding up’
18 June 2008
Office and industrial property rentals could soften if SA’s economic slowdown lasts longer than the market generally expects, industry experts said yesterday. Read more
Offices to let in Cape Town CBD are still high in demand. Murray and Roberts new offices to be located at 73 Hertzog Ave in the FORESHORE precinct along with Lexus motor dealers who will occupy the retail and ground floor space. Cape Town’s FORESHORE is still attracting tenants from all over with its easy access and sort after location.
The next seven biblical years
14 June 2008
This time last year, things looked rosy for South Africa; the country’s top economic experts were forecasting robust growth of around 5% per annum. In their own, December 2007, forecasting publication, property economists Rode & Associates forecast great potential in real office and industrial rents over the next few years, predicting robust demand for office and industrial space that was expected to keep vacancies low and nominal market rentals growing in excess of building-cost inflation. Now things are looking less optimistic: so what’s happened? Read more
Listed property takes rate hike in its stride
13 June 2007
Physical commercial property market has not weakened as much as the listed property sector.
The South African listed property sector recovered nearly 2% of its value on Thursday afternoon following the decision of the monetary policy committee (MPC) to hike interest rates by only 50 basis points. Read more
Commercial property investment – an inflation hedge
12 June 2008
Despite the high interest rate environment, there is an investor demand for direct commercial property as a result of its income growth potential, reports Carl von During, Director of Investment Property Sales at Broll Property Group… Read more
Dean Street Arcade receives a facelift
09 June 2008
Popular Dean Street Arcade in Cape Towns’ upmarket suburb of Newlands recently received a revitalising facelift
Situated on the corner of Dean and Main Streets in Newlands, Dean Street Arcade is anchored by Woolworths, with Nino’s and Mama Roma as the other major retail tenants. Read more
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Torrid future for property industry
26 May 2008
The Bureau for Economic Research’s (BER) senior economist Dr Charles Martin says that the current economic slowdown in South Africa – which follows on the robust expansion over the past eight years – could start abating from mid-2009. Read more
Commercial income stream is once again king
19 May 2008
According to Tony Bales of Bales Delaporte, Investment Property Dealmakers, during the last four years, when the commercial property market was racing along, many investors looked at other “boom time” investment criteria to assess potential investments
“In 2008, with higher interest rates and rising inflation, it appears that investors have gone back to the tried and trusted long term criteria of net income.” Read more
Building industry should not bear brunt of energy crisis
15 May 2008
Property economist Erwin Rode of Rode & Associates has strongly condemned Eskom’s decision earlier this year to impose a six-month moratorium on all new medium- to large-scale construction projects across both the residential and non-residential markets. Read more
Cape Town office rental boom continues
14 May 2008
A leading property firm reports a 50% increase in enquiries for office space in the Cape Town CBD, compared to that of 2007.
Over the last four years many old office blocks were snapped up to create up market apartments, and as a result, when the economy boomed, all grades of office premises were in short supply. This led to rental increases from around R50 to R60/sq m to the highest levels being achieved at Convention Towers (Cape Town) at R120/sq m at the moment. Read more
SA based Madison secures stake in management of multi-million UK property company
6 May 2008
Property asset management company Corovest Fund Managers, in which JSE-listed Madison Property Fund Managers Limited has a 40% interest, has acquired 50% of Wichford Property Management Limited Read more
Malls and offices still coining it
24 April 2008
The performance gap between commercial and residential property has widened significantly, latest data about the various sectors of South Africa’s property market shows. Read more
CBD rentals show robust growth
21 April 2008
Capitalization rates — the property equivalent of the forward earnings yield of shares — have remained put despite a deteriorating inflation and interest rate outlook.
Cap Rates (Market related rentals) as opposed to Yield (current, existing rentals)
This is according to the latest Rode’s Report on the South African Property Market which reports on surveys conducted during the fourth quarter of 2007. Read more
Electricity crisis could affect property values
18 April 2008
Capitalization rates — the property equivalent of the forward earnings yield of shares — have remained put despite a deteriorating inflation and interest rate outlook. This is according to the latest Rode’s Report on the South African Property Market which reports on surveys conducted during the fourth quarter of 2007. Read more
Market volatility dampens listed property
10 April 2008
Global market woes and local interest and inflation rates uncertainty continue to dampen the listed property sector, with the South African listed property index losing 4% last month. Read more
Has commercial property peaked?
3 April 2008
Real estate experts ponder whether roaring returns can be repeated again by physical property.
Double-digit returns of not far off 30% for last year have left property investment fund managers and other professionals in the commercial real estate sector delighted with their annual performance. Read more