Property management strategy needs to be conversant with a number of trends in the commercial property market. One of these is the urban growth dynamic and the manner in which this impacts on the growth and development of nodes and centers. There are micro risks and opportunities associated with each of these areas as well as macro-economic factors that affect their growth and performance – these need to be well understood.

JHI Real Estate Property Management Division cites office stock figures - a proxy of the nature of the growth of centers around the country. The following table gives one a sense of the growth of office markets outside of the major CBD’s in South Africa: In this 11 year period the decentralised office markets grew by an average of 260%.

In the space of about three years, nodes such as Umhlanga grew from around 63 000m² to 180 000m². In Johannesburg, areas such as Illovo and Bryanston grew from around 24 000m² and 59 000m² in the early 1990’s to over 124 000m² and 256 000m² respectively at present.

According to Jay Junkoon, property management director: Africa of JHI Real Estate, the rapid supply of commercial space has implications both spatially and in terms of market equilibrium.

 “Property managers are required to ascertain how best to spread resources and staff, consideration being given to economies of scale and logistics. Technology naturally plays an important role in this regard”.