Commercial property investors and brokers have realised that the demand for high-end commercial property has increased significantly in Rosebank, some asking higher rental than Sandton or Melrose Arch.
Despite the increase in commercial property vacancies which has also affected the area, the demand for commercial space still remains strong. Many businesses wishing to avoid congestion and the hustle and bustle of larger centres, have elected to establish themselves in this peaceful suburb, which is slowly becoming a thriving business hub.
The Rosebank Management District has kept the suburb a safe, attractive location to live, work and play. “The area is fast becoming the city’s third most recognised business centre after Sandton and the CBD,” says Leon Breytenbach, National Manager of the Rawson Property Group’s commercial division,”and with an active day and nightlife, draws locals and tourists alike.”
The advent of the Gautrain in 2010 was a turning point for areas like Rosebank. There are 10 new developments in progress within 700 metres of the Rosebank Gautrain station. “The majority of these developments are single tenanted corporate head offices which talks to another risk of back fill vacancies as a result of corporate real estate consolidation.” states the SAPOA Office Vacancy Report of October 2016. It continues, “Once these developments are complete and tenanted, several currently occupied premises, in some cases concentrated in one node, will be vacated and would need to be re-let in a challenging macroeconomic environment.” Should the re-letting prove difficult, the Rosebank vacancy figure which dipped to 6.8% in the previous quarter from 7.4%, would be adversely affected.
Development in Rosebank
According to the SAPOA report “Sandton and Rosebank account for more than half of the current office development.” One big tower block nearing completion is Rosebank Towers which will bring 30 000 square meters of commercial space to the area. The old Rosebank Mews shopping centre situated next to the Gautrain station is being redeveloped, while two other tower developments will take up 35 000 and 22 000 square metres of space respectively. “Most of this space will be occupied by the owning entities, but these developments may cause a temporary vacuum until the premises vacated by these firms are re-let,” reports Breytenbach.
"Nu-Metro Cinemas have their head office in Rosebank and Total S.A’s offices are also in the area," says Breytenbach. There are many large corporates, such as Garmin Southern Africa, legal firms like Couzyns Inc and other medical service companies. You will also find quirky pavement cafés, restaurants, high-end shopping malls like Zone@Rosebank, art galleries, flea markets, night clubs and top grade hotels such as the Hyatt Regency.
“With the Gautrain station located at the centre of the suburb, it becomes one of the most popular mode of transport used amongst the locals. It also makes travelling to OR Tambo Airport convenient,” suggests Breytenbach. Rosebank is about a five minute drive from Sandton and the CBD is about 20 minutes away. Mini-bus taxis are always close by.
Facts and figures
Rosebank has almost 377 000 square metres of rentable commercial space at present, of which 67 000 square metres is prime grade, 137 501 square metres is A-grade, 158 823 square metres is B-grade and 13 582 square metres is C-grade standard. “Only 23 050 square metres remain available for leasing. The vacancy rate presently stands at 6.1% from 7.9% nine months ago, this is a significant and positive drop which remained steady over the past year,” explains Breytenbach. The average rental for A-grade office space is R185 per square metre, while B-grade averages at R125 per square metre. There is an amount of 56 294 square metres of new development which has been approved but only 30 394 square metres will be available for rental.
Rawson Commercial has offices countrywide and we will gladly assist you with all your commercial needs contact (021) 658 7100.