Beukes van Heerden, Head of Capital Projects for SADC at award-winning property and construction solutions company, Profica, considers refurbishments and new developments in South Africa’s challenging office market.
It has been predicted this year that among South Africa’s three major commercial segments, office space will be the biggest loser. With a stubbornly high vacancy rate that sees Johannesburg at its highest peak since 2010 at nearly 13%, this is unsurprising given that offices are largely driven by economic growth. Despite these high vacancies, new development activity continues in certain nodes in Johannesburg, with reports anticipating that around 106,420m² of space will come onto the market in high-end nodes during this year and into next. Added to this is a flurry of refurbishments and renovations. Between the often-conflicting needs of property developers and owners, what does the market need?