Significant improvement in industrial vacancy rates
According to the South African Property Owners Association (SAPOA) industrial vacancy survey report, the results for the first half of 2013 show significant improvement in vacancy rate, which currently sits at 2,8%.Industrial property in the Western Cape registered the lowest vacancies and highest occupancy increase.
Gauteng industrial showed some improvement, registering a 153 basis point decrease in vacancy rate compared to the end of 2012. Industrial supply in terms of square metres of new buildings completed was down by 30,8% in the first half of 2013, compared with the first half of 2012.The overall industrial property vacancy rate decreased to 2,8% in the first half of 2013. New industrial space reported as completed decreased by 30,8% between the first half of 2013 and the first half of 2012. This reduced pressure on existing stock.
The industrial sector continues to enjoy the lowest overall vacancy level of the three main commercial property sectors. Office vacancies top the list at 12,6%, while retail vacancies as at June 2013 were 5,9%.The industrial sector posted a 9,1% overall return, of which 3,9% was capital growth and 5% was income return. This impressive overall performance was underpinned by high capital growth and low vacancy rates averaging 2,8% for the six months.However, rental growth continued on a decreasing path, with the first half of 2013 registering a growth rate of 2% compared to 7,4% as at end of 2012. This was 3,5% less than the annual inflation rate.
Yields improved slightlyfrom 11% in 2012 to
10,9% in the first half of 2013.The Western Cape
also outperformed other industrial provinces in terms of occupancy. Its
vacancies were the lowest of the main industrial provinces, at 1,5% followed
closely by KwaZulu-Natal at 2,2%.
For more information on purchasing, renting or investing in commercial and industrial property in Cape Town, please contact Robert Ryll | Cell Number: 082 374 2662 | Landline: 021 552 4100 or Email: firstname.lastname@example.org
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