The IPD South African Annual Property index showed in April that industrial property was the top performer in 2016. A total return of 13.6% (capital and income) was achieved, outperforming the traditional frontrunner, retail, at 12.6%.
The latest Epping Industrial Property Index confirms the high demand for industrial property. The Index uses the most comprehensive and up-to-date statistics for the 1st quarter of 2017 (Q1). The amount of space available for rent has increased. The average weighted asking rentals have gone up to R46.92/m² gross, plus Vat. The lower priced premises let at a faster rate than the higher priced spaces. The “more top rated” buildings that have been let have been of the very highest specifications. Whilst they may appear to have a higher R/m², they are much higher (taller) and offer a lower R/m³. Full compliance to modern fire regulations, lower electricity costs, modern building materials and better efficiencies for businesses. The amount of space for rent is still low, and companies need to plan their moves well in advance.
These statistics back up what is happening “on the ground” in the industrial market. There is now a significant shortage of properties to rent. Especially for the better, larger, more modern buildings. For the first time in a while, developers have started building warehouses “on spec” – hence, before they have found a tenant. The amount of vacant space available to rent indicates a vacancy factor of less than about 4%. This is classified as low. These statistics show the continuing confidence medium and large businesses have in Epping Industria. Confidence is from both property owners and property users. Epping continues to offer all-round good value to landlords and tenants.
The Epping Industrial Property Index is a collection of actual in-depth statistics. This index is designed to assist property owners, tenants and other stakeholders in assessing the industrial real estate market in greater Cape Town. Epping houses many of the largest industrial companies in the Western Cape. It is an excellent gauge for industrial property in the entire Western Cape. The statistics forming the Epping Industrial Property Index is put together by the only company who works with landlords and tenants in Epping every day. Epping Property is the only company to have surveyed the actual built industrial spaces in the whole of Epping. They have measured the total square metres available for rent, thus making our statistics the most accurate available.
While the above information is an excellent indicator of rental demand and supply, below is a list of properties sold and transferred during 2016. (For interest purposes, we have kept the transfers of 2014 and 2015 listed). Please bear in mind that properties have different building size: Erf size ratios as well as various other characteristics. It is only meaningful to compare similar properties. Please feel free to contact Epping Property for a more detailed discussion on property values in Epping and the Central industrial areas of Cape Town.