Abacus DIVISIONS July 2012 News !
Centurion office parks offer great value for money - Abacus DIVISIONS
Office vacancy levels in the Centurion business area are currently sitting at between five and 20% - depending on the office park - and are arguably partly due to over exuberant property developers moving in on the territory during the boom years. During the massive slump that was precipitated by the collapse of Lehman Brothers in the USA in 2008 the market has all but imploded – or at least leveled out dramatically.
This is according to Org Geldenhuys, managing director of property development and management company, Abacus DIVISIONS , a company who is currently involved with popular office park developments such as the Route 21 Corporate Park in Irene, and Highveld Technopark in Centurion.
Geldenhuys said that with the slowdown and the concomitant growth in vacancies the overall “rental value” of the Centurion area has “come under pressure” from a supply and demand point of view. “Commercial property rental prices are certainly under pressure in the greater Centurion area at the moment. Additionally, with the development of the Gautrain station near the Centurion Lake there has been a shift away from some areas to this area as companies recognize the benefits of being close to the station. This has placed more pressure on office parks that are located further away from the station,” said Geldenhuys.
He said the main “value proposition” that can now be marketed by property owners in the area is the fact that there are many office parks in Centurion that offer rentals that provide a very high price/performance ratio.
“It is true that rental prices are somewhat muted but this is definitely providing advantages for businesses. Centurion,” said Geldenhuys, “now provides companies with tremendously good value for many.”
He said prime office space can now be snapped up at leading office parks, such as Highveld Technopark, starting from as little as R75 to R85 per square metre. “The upside for companies,” he said, “is that these are very cost effective rates. They are hard to beat from a value provision point of view.”