Rosebank at a glance
Rosebank Office Nodal Report Q1 2018
Key Market Numbers
Total Stock: 369,179 m2
Vacancy Rate: 6.7%
Development Pipeline: 108,044 m2
Grade P rentals: R245/m2/month
Rosebank has seen a lot of developments (residential, retail and office) over the past few years. For a mature node with very limited land space available the node has continuously done well. The node came in second at 27% in terms of development activity in Johannesburg. Rosebank has enjoyed rigorous demand for Grade P accommodation which has seen just over 41% growth in stock over the past 2 years and has a vacancy rate below 1%. Recent completions in the node include the refurbishment of the Conservatory on Baker street. Rosebank currently has a vacancy rate of 6.7%, which is largely due to a high vacancy rate for Grade A accommodation.
Rosebank has seen impressive rental growth over the past few years. However, the past quarter’s rental performance was subdued given the difficult economic climate. Grade P accommodation in Rosebank recorded growth of 0.8% y/y, grade A recorded growth of 4.1% while grade B recorded a 12.3% growth in average rentals. Rental growth is largely attributed to annual escalations.
Office supply in Rosebank is expected to grow in the foreseeable future when developments such as The Link, 144 Oxford and Oxford Parks are completed. This may potentially push up the vacancy rate since some of the developments are not fully let. Nonetheless, the node continues to see healthy demand from occupiers. Average rentals are expected to slightly move up as new developments tend to exert an upward pressure on rentals.