Fourways at a glance
Fourways is located to the north-west of the N1 highway and is bordered by Bryanston, Rivonia and Sunninghill . The node is accessible from the William Nicol Drive off-ramp and Witkoppen Road, with close proximity to Lanseria Airport.
The office market is encompassed by a large residential and retail market with Montecasino being a prominent entertainment destination.
The node has a diverse range of quality office stock with premium and relatively newer stock concentrated around the Montecasino precinct, such as the Palazzo Tower, The Pivot and Longpoint Office Park, with older stock dispersed across the region.
The Fourways office market, which is characterised by grade A accommodation, has seen significant growth in supply of grade P accommodation over the past few years. Grade P office accommodation in the node has more than doubled over the past 3 years going from 10,000 m2 in Q1 2015 to 25,000 m2 in Q1 2018. The increase in grade P accommodation in the node and the take-up of such accommodation highlights the shift in demand towards more efficient, greener higher quality accommodation.
The vacancy rate for Fourways currently sits at 8.9%, having recorded a 2.9% decline on a quarterly basis and a 0.8% decrease on a yearly basis. It is worth noting that grade P accommodation in the node has been fully taken up.
Rental performance in Fourways has been weak. However, this is something that is prevalent throughout the Johannesburg office market given the weak economic conditions and the prevailing pressure in the market. rentals have remained relatively unchanged recording minimal to no growth in some office types.
Office supply in Fourways, particularly Grade P, is expected to increase in the near future as the ongoing development(s) come to a conclusion. The vacancy rate for Grade P is expected to remain relatively low as there is robust demand for this type of accommodation.