August 23, 2004

Corporate space users need to act now to lock in current value opportunities, says Michael Schirnig, head of Corporate Real Estate Services at Old Mutual Properties.

"Significant up-takes in business premises in Sandton as firms take advantage of the relatively soft market will exert pressure on occupancy costs," says Schirnig, whose division provides strategic and advisory services to business space users.

"Pressure on rentals in Cape Town is not far off, as office supply drops, largely through large chunks of lower grade space being converted to apartments.

"In an environment where markets are bottoming out, if not yet accelerating, occupiers need to consider their long-term property objectives and capitalise on the opportunity for early renewals, lease extensions and new leases that lock in value."