International companies prefer industrial space close to OR Tambo International Airport

Posted On Monday, 17 February 2014 14:38 Published by
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Over the past decade, an increasing demand for large warehousing space among distribution and logistics companies has resulted in the establishment of new industrial townships next to the main arterial and secondary highways between the north and eastern suburbs of Johannesburg.

Industrial

A further trend, evident since the mid 1990s, is that the South African economy has gradually been moving from a predominantly manufacturing focused industrial sector to one of moving manufactured goods and raw materials in, out of and through the African continent.

"Coupled with this," points out Jonathan Klimek, leasing, sales and investment broker for JHI Properties in Johannesburg, "building costs, as well as the increasing cost of proclaimed industrial land, have driven up asking rentals for new warehousing well above asking rentals found in the older industrial nodes, such as Isando and Spartan.

"In turn, an increase in the nominal vacancy rate for Isando and Spartan has kept rentals in these areas competitive in the marketplace, resulting in property owners making improvements to these industrial properties in order to retain tenants and increase returns.

For example, the JSE-listed Capital Property Fund recently redeveloped their 5 412sqm warehouse on 20 907sqm of land into an A+ Grade logistics facility that offers 13.5m high eaves, FM2 flat floor, on-grade access as well as docking for reticulated transport vehicles and power of 500 Amps.

Situated on a well-secured corner stand with two entrances, 16 Industrie Road in Isando has been designed to accommodate any one of an array of logistics applications.

The asking rental for this brand new building is R53 per square metre." Capital Property Fund has property holdings in and close to the primary industrial nodes in Gauteng, Cape Town and Durban.

Conveniently located, Isando offers easy access to the R21, N12 and R24 and is ideally positioned next to OR Tambo International Airport, within easy reach of the airport cargo terminals via back routes - should one wish to avoid the highways.

Isando itself is home to the Rhodesfield Gautrain Station, part of the rapid rail network linking Johannesburg CBD, Sandton, Rosebank, Midrand, Centurion, Hatfield, Isando and OR Tambo International Airport.

Says Klimek: "Isando is a growing commercial and industrial node, well recognised by international companies who seek the benefits of being situated close to OR Tambo International Airport, passenger rail and major road networks such as the R21, R24 and N12.

Companies such as PepsiCo, MAN Truck & Bus (SA), GUD Filters, DSM Nutritional Products South Africa, Tiger Brand and Premier Foods are just a few of the blue chip organisations occupying large facilities in the Isando node."

Hotels and conference facilities in the nearby vicinity and surrounds include the Inter Continental Hotel, Emperors Palace Hotel Casino Convention & Entertainment Resort, City Lodge, Airport Inn & Suites, Don Johannesburg International Airport and Garden Court.

"This makes Isando very convenient for international executives who may fly in for meetings, stay over and fly out the next day. Another advantage is the area's convenient proximity to residential suburbs such as Bedfordview, Linksview, Kempton Park and Glen Erasmia, while it's an easy commute from Pretoria, Centurion and Johannesburg's northern suburbs.

"It stands to reason that we are finding that increasingly, international and national companies seeking industrial and office accommodation - or a combination of these - are looking to be situated in close proximity not only to major highways and other transport routes such as the Gautrain Stations but also in the rapidly expanding commercial hub around OR Tambo International Airport.

This is where the well-situated and easily accessible Isando area is coming to the fore, as it meets all these criteria and more," says Klimek.

"Manufacturers favour Isando due to its access to large power grids. An appealing and highly suitable industrial property available to rent is 60 Electron Avenue.

Previously a sought after manufacturing facility, it offers 3500 Amps electricity, fire sprinkler system, good water pressure and ample staff facilities, including large ablutions and a canteen area.

It also has broad frontage onto the R24 highway, making it ideal for corporate signage and exposure. The property consists of 24 642sqm and is marketed at a starting rental of R38 per square metre.

Other properties where large industrial space is available to let through JHI Properties include 32 Electron Avenue, also at a gross rental of R38 per square metre, and a warehouse in Waterpas Road, comprising 8555sqm at a rental rate of R50 per square metre and well suited to logistics companies."

Klimek also mentions office space situated close to Festival Mall that has become available to let. Recently vacated by Improchem, the offices are in immaculate condition and ready for occupation.

Referred to as 138 Plane Street, the property consists of 3896sqm of offices with 990sqm of warehousing for storage or manufacturing, currently marketed at a very competitive gross rental of R60 per square metre.

Says Klimek: "Being in close proximity to Festival Mall and near Kempton Park CBD and Ekurhuleni Metropolitan Municipality offices, the building has exposure to busy Plane Road. It's also in walking distance of the taxi rank and railway station, providing good access for staff dependent on public transport.

This is a good opportunity for businesses seeking office accommodation in the Kempton Park and Spartan area."

In addition, the ex-Bridgestone office building comprising 2633sqm situated in Van Acht Street, Isando - within walking distance of the Rhodesfield Gautrain Station and Holiday Inn, close to major bus routes and key road networks - is now available to let at a gross rental rate of R70 per square metre.

This property has 650 Amps power, a large shade-port parking area and expansive gardens.

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