Sandton at a glance
Sandton Office Nodal Report Q3 2017
Stock: 1,681,928 m2
Overall Vacancy Rate: 11.3%
Grade P Vacancy Rate: 4.8%
Prime rentals: R208/m2 – R230/m2
Sandton continues to be the pioneer of office developments nationwide accounting for a little under 40% of ongoing national office developments.
Sandton has become the corporate address for many law firms and will see an increase in the number of law practitioners operating in the node as Redefine recently announced a R476mn office block for advocates. The office block will comprise 9 storeys over an area of 13,500m2 and is expected to be completed early Q2 2019.
Sandton is no exception to the ongoing pressure in the office market. While the node is seeing new stock coming into market there has been little to no growth in rentals on year-on-year basis.
While the node is experiencing pressure, Sandton continues to record overall vacancy rate of 11.3% which is below the overall Johannesburg vacancy rate and has contributed positively to the vacancy decline in the city.
While the node is currently experiencing pressure, this has not deterred investors/developers as we continue to see new developments being announced indicating a healthy confidence in the recovery of the node.