Rosebank is a prime office node ideally situated between the Johannesburg’s city centre and the Sandton central business district. Bounded by its north-south mobility spines namely Jan Smuts Avenue and Oxford Road and by Bolton Road and Jellicoe Street in the east-west, the area has managed to successfully combine a commercial identity with a strong retail and residential element. Prominent companies found in the node include media company Avusa, investment management company, Thebe and petroleum corporates, Sasol and Total who both have head offices in the area.

The Rosebank Gautrain station which has significantly improved accessibility to the area, has also led to increased development interest in the node. Key projects include Standard Bank’s 69,000m² office development, located in close proximity to the Rosebank Gautrain station and due for completion in March 2013 as well as the 10,000m² office development on 30 Jellicoe.

Market Overview
The Rosebank area has a total rentable area of 286,872m², offering an almost even distribution of both A and B Grade stock. The two significant development projects in the area that are near completion coupled with the recent take up of newly redeveloped Old Mututal offices next to the Zonel are all indicative of the existing demand for Rosebank.

The advantages of Rosebank is that it is small in size, pedestrian friendly, has good security, all modes of transport accessibility and has quality office stock and amenities which bodes well in meeting prime occupiers needs.

There were slight changes in office rentals with Grade P office rentals achieving a 2% increase at R172.00/m² this quarter with minimal rental growth experienced in the Grade A and B offices. This sluggish rental perfomance is mainly attributed to the current longstanding economic uncertainty.

Total vacancies across the grades continued to decrease this quarter indicative of the demand for the good quality stock that the Rosebank office node offers. Vacancies have reduced by half since Q4 2011 and sitting at a current 4.0%.

Outlook for tenants
Rentals are projected to remain flat in the next 12 months as the overall demand in the Johannesburg area is relatively weak with minimal rental growth expected in the prime office buildings. Despite this, it is anticipated that this node will continue to perform well due to its prime corporate address and good quality office buildings.

Source: Jones Lang LaSalle