Randburg at a glance
Randburg Office Nodal Report Q3 2017
Stock: 442,702 m2
Overall Vacancy Rate: 13.96%
Grade A Vacancy Rate: 7%
Grade A rentals: R85 - R101/m2
The Randburg office market has seen very little developer interest in the past few years with very little development activity taking place. The lack of newer high quality stock in the area has led to the decrease in demand for accommodation with most corporates moving to node like Illovo, Hyde Park and Rosebank. The Randburg stock is dominated by older grade B accommodation.
Average rentals in the node have seen very little growth over the years and currently the average rental for grade A sits at R101/m2. Randburg is one of the nodes experiencing stagnation in the office market. The Randburg vacancy rate currently sits at 14% which is higher than the overall Johannesburg vacancy rate further emphasizing the pressure the node is experiencing.
With the Johannesburg office market still suffering from high vacancies compared to other large metros and experiencing a short term over-supply, Randburg is not expected to perform any better and will continue to be under pressure due to its lack of quality stock. However, with the emerging conversion trend we may see some office buildings being converted into residential accommodation. Nevertheless, the node may be an ideal location for smaller corporates looking to be situated near the workforce and in close proximity to major nodes like Rosebank and Sandton.