The latest Operating Report Published by SAPOA – 3rd Quarter 2009 makes very interesting reading says Rodney Luntz, Managing Director of Lew Geffen Sotheby’s International Realty Commercial Investment Property.

Despite average GDP growth of 2,7% in the 10 years since 1993, close to 2m m² of new A- and B-grade office space was built in Johannesburg's northern suburbs. Even allowing for the 550 000 m² space that is vacant because of over development - and the 400 000 m² that lies abandoned by companies that fled the Johannesburg CBD for the suburbs - that is about 110 000 m² net take-up/year in the past decade.

Suggestions that the listed property sector, the likes of property unit trusts and property loan stock, is coming off the boil, are premature says Rodney Luntz of property consultancy, Abro Luntz.

Landlords and tenants are likely to change their strategies as the oversupply in A-grade office space eases, says Rodney Luntz of property consultancy Abro Luntz.

A lease in its most simple form is a cash stream for a defined period of time, and for tenants it is a commitment to providing that cash stream.

For property investors a lease in its most simple form is a cash stream for a defined period of time, while for tenants it represents a commitment to providing that revenue.

A growing market in sub-let commercial office space as a result of the difficult trading climate is creating new leasing trends in the property market. 

Use of professional managers still a subject for debate.

Landlords need to be more liberal towards tenants who sublet office space, says Rodney Luntz of property consultancy Abro Luntz.