An area which is strategically positioned to capitalise on this trend is Isando, a centrally situated and well established industrial hub in Kempton Park which is located between major highways - the R24, N12 and R21, says Jonathan Klimek, leasing, sales and investment broker for JHI. “It is the central point of the industrial east region in Gauteng, being surrounded by other industrial areas such as Jet Park, Spartan, Anderbolt, Pomona and Meadowdale.

“Isando’s convenient access and good exposure to these key routes, coupled with its close proximity to OR Tambo International Airport, the Gautrain and rail links, offers significant appeal and value for industrial businesses, particularly from a distribution aspect, and especially in terms of large users. The area is already home to major manufacturers such as Simba, Lion Match, Barloworld, Caterpillar and Supercare Group, among others.

“Not forming part of the Toll Gate system, and as a result not as affected by increased travel costs as other areas, Isando also stands to benefit from upgrades in micro and macro infrastructure - both currently and in the future,” says Klimek.

These upgrades include the re-tarring of Isando Road and re-tarring and widening of other roads in the area; improvements to nearby highways which include re-tarring and widening of the roads and improvements to on- and off-ramps; and the possibility of the development of feeder routes to industrial areas once the remainder of the Gautrain route is open.

Says Klimek: “Bearing these advantages in mind, as transport costs and access to key routes are critical factors in any manufacturing and/or distribution business, Isando again comes to the fore. From a logistics perspective the area has easy access to major traffic networks linking to Midrand and Pretoria (R21), Mpumalanga (N14) and the N3 leading to Johannesburg’s Southern Suburbs and running through to KwaZulu-Natal. Of importance to employees is the fact that Isando is also in close proximity to Rhodesfield Gautrain Station for those commuting to work.

“The current demand is mainly in the size range from 500-1000sqm as well as for larger warehousing space up to approximately 5000sqm and above. Enquiries include those from light manufacturing and local and international distribution/logistics companies seeking to consolidate operations in central areas for increased cost effectiveness, as well as storage and distribution operations wanting to be located near major highways and the airport. Another key factor for such manufacturers is the availability of sufficient electricity – which Isando offers.”

Klimek says currently JHI is marketing industrial space to let in Isando in buildings with 950-2560amps - ideal for manufacturers such as bakeries or those who require cooling and heating facilities. These include a number of well positioned industrial properties, comprising warehousing space together with a small office component, which are linked to the major national railway network.
 
Says Klimek: “These properties range in size from 1300-6000sqm at gross rental rates between R25 and R35 per square metre for older buildings and between R35 and R45 per square metre for newer, more modern buildings, and they are in close proximity to OR Tambo International Airport and the Rhodesfield Gautrain Station. They include a property in Electron Avenue with excellent exposure to the R24 highway; a business park at 33 Brewery Road, with good exposure to Isando Road; an easily accessible property in Hulley Road; and the ideally located Isando Business Park. The latter, as well as the Hulley Road property, are near the Rhodesfield urban development framework which is a mixed use development that includes a residential component suitable for employees. A further business park at 45 Diesel Road, near the airport, is ideal for a big user requiring a good power supply.”

He adds: “Depending on the term of the lease, the rate and risk profile of the tenant, in some instances landlords are negotiable in regard to beneficial occupation, ie a one or two month rent free period for the purpose of carrying out their installations. Naturally such conditions are subject to landlord approval.”