RODE’S REPORT

2024:2

www.rode.co.za

Listed property is back on investors’ radar • Office markets in Durban

and Cape Town shine • Low industrial stock continues to boost rentals •
Flat vacancies decline sharply • House price outlook improves
Rode’s Report 2024:2 i State of the Property Market

Rode’s Report
on the South African Property Market

2024:2
Erwin G. Rode
Vol. 35 no. 2 (editor-in-chief)
Kobus Lamprecht
(editor)

Editor-in-chief Published by
Erwin G. Rode Rode Publications (Pty) Ltd.
Reg. No: 2024/209938/07
Editor
Landline: 021 946 2480
Kobus Lamprecht
E-mail: [email protected]
Surveys & Advertising
Cell: 071 410 7978
Lynette Smit
Cell: 082 323 5799 Website: www.rode.co.za
Subscriptions Cover illustration
Elizma Hawksley Konrad Rode
Cell: 083 235 6917 082 446 6526
Annual digital subscription: www.capetowncartoonist.com
4 issues: R6.250 (excl. VAT)

© Rode Publications (Pty) Ltd., July 2024. All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted in any form or by any means,
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contained in this publication. Portions of this report may be reproduced for legitimate academic or
review purposes provided due attribution is cited.
Rode’s Report 2024:2 iii Contents

Contents
State of the property market
State of the property market in quarter 2 of 2024 1

Capitalization rates
Cap rates outlook improve 5
How to estimate capitalization rates - anywhere 20

Listed property
Listed property is back on investors' radar 23

Office rentals, operating expenses, and office demand & vacancies

Office markets in Durban and Cape Town shine 30
Office demand improves further 66

Industrial rentals and vacancies and industrial stand values

Low industrial stock continues to boost rentals 79
Stand values edge lower 118

Residential market
Flat vacancies decline sharply 145
House prices outlook improves 176

Building activity & building costs

Industrial building-construction activity the only positive story 181
Rode’s Report 2024:2 iv Tables

Tables
Table 1.1: Office and industrial rentals performance 3
Table 2.1: Prime industrial leaseback escalation rates 13
Table 2.2: Survey of capitalization rates: Office buildings 14
Table 2.3: Change in capitalization rates: Office buildings 15
Table 2.4: Survey of capitalization rates: Industrial buildings 16
Table 2.5: Change in capitalization rates: Industrial buildings 16
Table 2.6: Survey of capitalization rates: Shopping centres 17
Table 2.7: Change in capitalization rates: Shopping centres 18
Table 2.8: Survey of capitalization rates: Street‐front shops 19
Table 2.9: Change in capitalization rates: Street‐front shops 19
Table 4.1: Total returns on listed property funds: Recent performance
and past five years 25
Table 4.2: Change in distributions for half‐ and full‐year periods ended
February and March 2024 29
Table 5.1: Pioneer office rentals 35
Table 5.2: Market rental rates for office buildings 36
Table 5.3: Standard deviation of market rental rates for office buildings 40
Table 5.4: Typical rent-free period in months 44
Table 5.5: Market parking rentals 48
Table 5.6: Office rental escalation rates on new leases 52
Table 5.7: Escalation rates on operating costs 56
Table 5.8: Typical gross outgoings for prime office buildings 60
Table 6.1: Rode office vacancy factors 75
Table 7.1: Pioneer industrial rentals 86
Table 7.2: Mean prime industrial market rentals 87
Table 7.3: Standard deviation from mean prime industrial market rentals 100
Table 7.4: Predominant market escalation rates for industrial leases 114
Table 7.5: Indicative operating expenses for industrial buildings 115
Rode’s Report 2024:2 v Tables

Table 8.1: Sensitivity of land value to changes in rent 118

Table 8.2: Mean market values for industrial stands 120
Table 8.3: Standard deviation for industrial stands 133
Table 9.1: Flat vacancies by city/province 147
Table 9.2: Flat rentals: Standard units 148
Table 9.3: Flat rentals: Upmarket units 157
Table 9.4: Flat: Parking rentals 166
Table 11.1: New non‐residential buildings 185
Table 11.2: New residential buildings 185
Rode’s Report 2024:2 vi Annexures

Annexures
Annexure 1

Glossary of property terms and abbreviations I

Annexure 2

Technical background to the Rode surveys XIII

Annexure 3

How to interpolate industrial rental rates and land values XVI

Annexure 4

Approximate building cost rates by AECOM XVII

Annexure 5

Monthly forecast of Haylett by BER XXIII

Annexure 6

BER Building Cost Index XXIV

Annexure 7

Prime overdraft rate at month-end (%) XXV

Rode’s Report 2024:2 vii Panellist codes

Panellist codes
Code Company Telephone number

ABA Abacus Divisions 0123455555

ACU Acumen Properties 0825574768
AN Annenberg Property Group 0214657780
AP/OP API Property Group/OfficePlace 0126440522
AP/OP API Property Group/OfficePlace 0112341144
AP/OP API Property Group/OfficePlace 0219112906
AP/OP API Property Group/OfficePlace 0311008108
APG Asset Property Group 0119741055
ARN Arnie Katz Realty 0413731333
AV 5th Avenue Properties 0112346111
AWP Andrew Wood Properties 0832363848
AX Avron Properties cc t/a Montague Gardens Property 0215520001
BCR Bedfordview Commercial Rentals (Pty) Ltd 0114500588
BLA Black Pepper Properties 0114631909
BON Bonnins Estates 0315629292
BPM Blue Asset & Property Management 0829716402
BR Broll Property Group 0514303008
BR Broll Property Group 0114414108
BR Broll Property Group 0413635559
BR Broll Property Group 0313621700
BV Boyd Valuations 0878094829
BVF Boshoff Visser Property Group 0448732801
CA Chas Everitt 0219154800
CAM Camden Property Investments 0824056940
CAP CapProp 0837845895
CAR Carleon Properties 0117891007
CBR CBRE Excellerate 0119118259
CIR Circle Properties 0219813263
CM Capitol Commercial Properties 0219141840
COM Commercial Space 0216805380
COR Core Property Group 0217972552
CPC CarlPenn Commercial 0215696308
CPS 3Cube Property Solutions 0103006441
CR Colliers International 0117832111
CRI CRI Properties 0123467777
DD Diamond Properties 0214340001
DE Dedekind Real Estate 0366372297
DN David Newham Property Management 0219480934
Rode’s Report 2024:2 viii Panellist codes

Code Company Telephone number

DOR Dormehl Phalane Property Group Pietermaritzburg 0333425129

DT Deltahof 0826022777
DW Divaris Property Brokers 0215311551
ED Edric Trust 0514489431
EK Ellenberger & Kahts 0514301511
EQV Equity Valuers 0514300907
ERA ERA Sun Properties 0437404556
ES Eli Ströh 0152873300
ETC Etchells and Young Property Brokers 0117915134
EXH Executive Homes 0114855019
FUN Fundation Property 0828723865
GAM Granite Asset Management 0861177770
GB Galetti Corporate Real Estate 0117831195
GI Growthpoint Properties 0119446449
GI Growthpoint Properties 0119446073
GI Growthpoint Management Services 0315845100
GR Grove Properties 0834561924
GRV Garden Route Valuers 0762308680
GW Goldswain Investments 0437222876
HN Harcourts Patrick & Co 0333423340
HN Harcourts Maritz 0126530386
HP Horizon Capital 0214258586
IPC IPC/Rob Lopes Rentals 0413630000
JA Jawitz Properties 0217945500
JB Jack Bass CRE 0210231301
JLL Jones Lang LaSalle 0115072200
JR J Margolius & Associates 0861825848
JUS Just Property Winelands (Paarl) 0218721487
JUS Just Property Atlantic Seaboard 0212017007
JUS Just Property Helderberg 0218546372
KA M.A. Krog & Associates 0832973140
KEL Kellaprince Property Group 0137544400
KWP Keller Williams Prime Realty Group 0836351320
LA Landlords "We do Rentals" 0219751770
LIB Liberty 2 Degrees 0114485687
MAF Mafadi Western Cape 0210013410
MAS Massyn Acquisitions 0123452576
ME Mendace Properties 0828998304
MO Moolman Group of Companies 0152914700
MPR Millar's Properties 0123420527
MPV Masisizane Property Valuations 0834693555
MR Marder Properties 0114531220
MUL Multi Properties 0448746907
Rode’s Report 2024:2 ix Panellist codes

Code Company Telephone number

MX Maxprop Holdings 0312517300

MY Mike Shefer Estates 0413738676
NAN Nangate Investments 0824113839
NE Newbridge Property Services 0219139131
NET Networth Group 0152988141
NH Netwater Properties 0113261614
NR National Real Estate 0514059990
ORI Oriprops 0137546562
OSO Office Space Online 0115933111
PC Propco (1985) 0315691334
PG Pam Golding Properties Nelspruit 0137542300
PH President Estate & General Agents 0118738707
PLA Platinum Global 0514474711
PM PDL Property Management 0137527333
PN Propergation Property Solutions 0219146444
PPG Pulse Property Group 0437000327
PPR Parallel Property 0110837171
PRS ProperSell 0117816281
PRU Properties R US 0218632046
PVN Property Valuations Namibia 0026461241100
PVS Premium Valuation Services (Pty) Ltd 0832290130
PW Property Window 0538311319
PX Pillay Properties 0216857710
QU Quadrant Properties 0115309840
RA Real Estate & Property Services 0110271400
REA RealFMG 0118071760
RIO RIO Property 0837082098
RIZ Rize Property Professionals 0835567257
RNP RNP Properties 0116262630
RO Reef Property Consultants 0114501700
SA Sarkhot & Associates 0318305434
SAF Safcom Properties 0215528871
SC Stockton Property Consultants 0114259857
SCM Sotheby's Commercial 0217012446
SE Stipec Eiendomskonsultante 0152954537
SF Seeff Polokwane 0152971140
SF Seeff Properties Amanzimtoti 0319031234
SH Share-List Property 0317647101
SHP Shalan Properties 0836527341
SPI Spire Property Solutions 0216854020
SPS Strategic Property Solutions 0315760387
SQ Steer And Company 0214261026
SR Sancus Realty 0218899759
Rode’s Report 2024:2 x Panellist codes

Code Company Telephone number

SS Six Squared Property Consultants 0823872234

SUM Summerton Edelson Commercial 0415811768
TCP Turnkey Commercial Properties 0833067916
TE Trust & Estate Co. 0026461231224
TG Theo Goosen Estate Agents 0152959014
TH Trevor Hosiosky Investment Properties 0118035545
TI Torva Property Investments 0117835370
TR Trafalgar 0313017017
TR Trafalgar 0112145200
TR Trafalgar 0437266066
TR Trafalgar 0413656840
TR Trafalgar 0431250125
TR Trafalgar 0214105500
TR Trafalgar 0123265963
TR Trafalgar 0214105531
TRD 3rd Storey (Pty) Ltd 0795171696
VP Vermaak Properties 0215552495
WD Webprop 0219100180
WHF Warehouse Finder 0860009531
WP Watprop 0118870473
WPM Watchprop Property Management 0219819756
ZZ Anonymous
Rode’s Report 2024:2 xi Acknowledgements

Acknowledgements

The writers of Rode's Report (RR) express their sincere thanks to:

1. The Bureau for Economic Research (BER) for the use of its building‐cost data
(BER BCI).

2. AECOM for the use of its building‐cost data for various building types.

3. All the panellists who so kindly gave of their time and expertise in responding
to our surveys. The complete list of panellists who contribute to the RR,
together with their codes, appears on p. vii. For each of the survey tables in
the RR you will find, listed against every node or area, the codes for all the
panellists who contributed information this quarter.

4. Loraine West, who has the task of making sure the grammar and style are up to
scratch.

5. Other property practitioners throughout South Africa, experts in their fields,

too numerous to mention individually. Without the generous assistance of
these professionals, much of our research would be impossible.
6. Lynette Smit and Elizma Hawksley for their technical assistance.

7. The JSE Securities Exchange and Statistics South Africa for the use of their data.
Rode’s Report 2024:2 xii Foreword

Foreword

Dear Reader

Welcome to the second issue of Rode’s Report on the South

African Property Market (RR) for 2024, which reports on surveys
conducted in the second quarter.

As usual, we report on the movements of several critical

property variables, ranging from capitalization rates, market
rentals, operating costs, vacancies, escalation rates and land
values to house prices.

We appeal to all market participants who feel they have sufficient property-market
knowledge to become a panellist, to please contact Lynette Smit. Her cell no. is
082 323 5799 and her email [email protected]. It’s for the benefit of everyone in
the industry. As a panellist you will also get invaluable exposure.

If you want to communicate with a specific niche market, you can also contact
Lynette for RR advertising rates.

Enjoy the read!

Kobus Lamprecht
Editor

22 July 2024
Advertise in Rode’s Report
IT’S WHERE YOUR MARKET GOES SITE-SEEING

Property is constantly in the limelight and investors are searching for meaningful,
property-specific information. This makes a compelling argument for finely-targeted
advertising in the Rode’s Report on the SA Property Market. This independent
analysis is one of the most widely-read publications of its kind.

ADVERTISE YOUR SERVICES AND PRODUCTS TO EXCELLENT EFFECT

• Target audience: Rode’s Report is targeted at independent analysis of the

property market targeted at property practitioners, e.g. property developers,
property managers, landlords, merchant and commercial banks, non-residential
property brokers, estate agents, valuers, quantity surveyors etc.
• Continued exposure: A quarterly publication, Rode’s Report is used as a
reference source with a long shelf life.
• Rates: If you advertise for four consecutive quarters, you will receive a 20%
discount off standard advertising rates.

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BOOKINGS AND MORE INFORMATION

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E-mail: [email protected]
Website: www.rode.co.za
Rode’s Report 2024:2 1 State of the Property Market

Chapter 1: State of the property market

State of the property market

in quarter 2 of 2024
Written off not long ago. Cut from investor which can be seen in the labour market. This,
portfolios. Yes, that was the story of listed and moves by other Central Banks, makes us
property. How things have changed. believe that a local rate cut is also likely
before the end of the year, with more easing
Listed property is now back on the radar of to follow in 2025. Of course, inflation will
investors. It was the best performer of the have to play along.
different asset classes in the first half of
2024. This comes after share prices of listed The formation of the GNU, better power
property funds ended the second quarter of supply, and expectations of lower interest
2024 with a great rally on optimism about the rates have led some economists (like the
Government of National of Unity (GNU) and BER at Stellenbosch University) to upgrade
the hope that the local interest-rate-cutting their view of economic growth for 2025
cycle will start before the end of 2024. to around 2%. This is an improvement
from the roughly 1% expected in 2024
The front page of this issue features a and implies a more favourable medium-
hypothetical car race featuring countries and term outlook for the property market.
where they are positioned in terms of the However, it is no time to become euphoric
interest-rate-cutting cycle. Switzerland is in as SA faces many intractable obstacles to
the lead after cutting interest rates twice higher growth rates – systemic problems
(it made its first move in March already). that will take a long time to solve. That
The European Central Bank and Canada said, the capital markets can and will react
joined the race in June, along with many other swiftly to a lower interest-rate regime. But
emerging economies. The question is then again, economists do not expect interest
when will the US and SA be out of the rates to fall drastically in the medium
blocks? term.

We must caution that with interest rates, A summary of the main findings by property
the timing is always uncertain, and investors type follows.
can easily get it wrong. However, Rode
believes we are getting closer to a turn in the Quantitative overview of the
cycle. property market

On 22 July, the odds of a first rate cut in the Table 1.1 provides a snapshot of how
US in September were around 95%, with up the property market has performed over
to three cuts seen before the end of 2024, the past four quarters by comparing the
according to data from the CME Group. latest information (quarter 2024:2) with
This is due to signs of a cooling US economy, data collected a year earlier.
Rode’s Report 2024:2 2 State of the Property Market

Office market space increased nationally by 2% in nominal

terms compared to the second quarter of
As mentioned above, the modest local 2023. This is somewhat better than the 1%
recovery of the office market continued in growth recorded in the first quarter of 2024.
the second quarter of 2024, as evidenced All in all, rentals have improved from the big
by lower vacancy rates and slowly growing Covid declines, but are still about 1% below
nominal market rentals. The market has been pre-pandemic levels.
boosted by the return of some workers to
offices since 2022, albeit in many instances in Durban is the surprise story of the
a hybrid way. quarter, with decentralized nominal market
rentals (+6,2%) in the city growing the
Rode found that the average South Africa fastest of the four major cities. Elsewhere,
vacancy rate of grades A+, A and B space Cape Town continues to perform strongly,
combined in decentralized 1 nodes was with decentralized rental growth at about
13,1% in the second quarter of 2024, down 5%, albeit cooling from previous quarters. In
from 13,9% in the first quarter of 2024. Johannesburg (+0,8%) and Pretoria (+1,5%)
This was also lower than the 14,6% average nominal decentralized growth remains
of the second quarter of 2023 (a year weak.
ago). Looking at the bigger picture, the
vacancy rate is still well above the pre-Covid Therefore, it is no surprise that listed
level of 10,5% in 2019 and the historical property companies are still generally
long-term average of 9,4% (as per SAPOA reporting negative office rental reversion
data). rates as contractual rentals have escalated
over the past few years by much more than
We found that the decentralized vacancy the growth rate of market rentals.
rates of the coastal cities of Cape Town
and Durban improved further during the This implies that office rentals are still
second quarter and were the lowest of the declining in real terms after deducting
major cities. Vacancy rates are comparatively building-cost inflation (BER BCI) of around 9%,
higher in Johannesburg but have also seen which makes most new developments
a strong improvement over the past few unviable. Indeed, office building activity is
quarters. in the doldrums. The other side of the coin
is that there is enormous upside rental
In the second quarter of 2024, weighted gross potential in the medium term from the
market rentals for decentralized grade-A current shattered levels.

1
Decentralized means all nodes in a metro lumped together, excluding the (old) central business district (CBD).
Rode’s Report 2024:2 3 State of the Property Market

Table 1.1
Office and industrial rentals: Performance as at quarter 2024:2
% change from four quarters earlier (on smoothed data)
Nominal Real*
A-grade decentralized office rentals
Sandton CBD 0,3 -8,3
Rosebank -4,0 -12,3
Bryanston -4,4 -12,7
Hatfield -5,8 -14,1
Menlyn 6,0 -3,1
La Lucia/Umhlanga Ridge 5,1 -3,9
Westville 12,8 3,1
Tyger Valley 1,4 -7,4
Century City 7,7 -1,6
South Africa 2,0 -6,8
Prime industrial rentals (500 m² units)
Central Witwatersrand 9,3 -0,1
East Rand 6,8 -2,4
Durban 5,4 -3,8
Cape Town 4,9 -4,2
South Africa 6,1 -3,1
*Nominal values deflated by BER Building Cost Index.

Industrial market Regionally, all the major conurbations shone

with strong nominal market rental growth
The industrial property market continues (4% to 9%) and low vacancies. The Gauteng
to impress, with sharp nominal rental conurbations of Central Witwatersrand
growth amid continued low vacancy rates. (+9,3%) and the East Rand (+6,8%) saw the
This is a market that has benefited from fastest rental growth. The Cape Town market
less speculative development than office is still performing strongly, but rental growth
buildings and malls. cooled to 4,9% after a strong run.

Nominal gross market rentals in South Africa However, national stand values did not
for industrial space of 500 m2 grew by 6,1% perform as well as rentals.
year on year in the second quarter of 2024.
This is up from the 4,8% growth recorded in Residential market
the first quarter of 2024. Rentals were about
20% higher compared to the pre-pandemic House prices in South Africa are still growing
levels of 2019 − no mean feat given the state at less than inflation amid a weak economy
of the economy. Rentals of industrial space and elevated interest rates.
of 1 000 m2 grew by a similar rate (+6,2%)
in the second quarter of 2024. However, in Nominal house prices grew by 0,4% in the
real terms, rentals are still declining due to second quarter of 2024 compared to the
elevated building-construction inflation. second quarter of 2023, based on FNB data.
Rode’s Report 2024:2 4 State of the Property Market

This implies that prices in real terms have data. Vacancy rates are now below the
continued to fall significantly after deducting average 2023 level of 7,2%.
inflation. Regionally, houses sold the quickest
in the Western Cape in the second quarter of Regionally, the Western Cape continues to
2024, with Gauteng at the opposite end of the stand out with its low flat vacancy rate
spectrum. of 2,7% in the second quarter of 2024,
well below the national average. Gauteng
Looking ahead, we expect house price growth surprised us with its flat vacancy rate
to remain under pressure over the next few declining significantly to 6,5% from 9,3%
months. However, we have turned cautiously in the first quarter of 2024. This was due
optimistic about prospects for 2025 as local to lower vacancies in Johannesburg and
interest rates are expected to start declining Pretoria. Gauteng’s flat rentals grew by 2%
before the end of this year and move even year on year in the first quarter, based on
lower in 2025. Economic growth is also Stats SA data. As rental increases are not
seen to be somewhat better than before. lifting the roof, the data suggests that
However, do not expect a mini-boom like property owners or their managers have
during the pandemic as the prime rate is generally kept rental levels in control to keep
not expected to fall as low, while many of properties tenanted.
South Africa’s problems will take a long time
to fix. Official data from Stats SA shows that in the
first quarter of 2024 nominal flat rentals in
Turning to flats, vacancy rates on a national South Africa increased by 3,6% compared
level averaged 6,7% in the second quarter of to a year earlier. This implies that house
2024, down from 7,9% in the first quarter of prices and rentals are still declining in real
2024, according to Rode’s residential survey terms. 
Rode’s Report 2024:2 5 Standard capitalization rates

Chapter 2: Capitalization rates

Cap rates outlook improve

Kobus Lamprecht

Rode’s second-quarter 2024 survey results from weak fundamentals, such as poor
show that capitalization rates of directly held market rentals and elevated vacancies. That
non-residential property have not moved said, these fundamentals have improved
much compared to the first quarter of 2024. somewhat, but not enough to lower cap
Office cap rates have stayed the same, while rates.
industrial and retail cap rates did see a slight
improvement. The industrial market is still fundamentally
in the best position of the three major non-
One, but not the only, determinant of residential property types, thanks to strong
capitalization rates is long-bond yields. SA demand amid a low availability of properties.
long-bond yields have fallen sharply since Brokers are generally of the opinion that
May 2024 as the prospects of local interest cap rates of industrial property decreased
rate cuts have increased after rates were (improved) slightly during the second quarter
lowered in Europe and Canada. In the US, of 2024 (see the chart).
markets on 22 July were expecting up to
three cuts before the end of 2024. Locally, The outlook for the retail property market
South Africa’s election results and formation has improved, given the better prospects
of the Government of National Unity (GNU) for consumer spending. Cap rates for this
were received as broadly positive for the property type have gradually declined thus
economy in the medium term. This implies a far in 2024 (see chart).
more favourable outlook for the property
market than before. But before getting too National capitalization rates
by property type

optimistic, let us remember that many 14

growth inhibitors are systemic – not to 13

Regional shopping centres
Industrial leasebacks

mention property-related roadblocks like 12 Decentralized offices

unreliable electricity and water supply, 11

%

sewage running in the streets, and above- 10

inflation increases in rates and taxes. 9

Sm oothe d
8

Returning to the survey results, cap rates 7

of office, retail and industrial property in

00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series

the second quarter of 2024 were still

up compared to pre-Covid levels. The office Nationally, the weighted cap rates
property market still offers the worst were 11,3% for grade-A multi-tenanted
income-growth expectations of the three decentralized office properties, 9,5% for
major non-residential property types, as prime industrial leasebacks and 9,2% for
implied by its high capitalization rates. These regional shopping centres (see the chart
reflect a sector that is still suffering above).
Rode’s Report 2024:2 6 Standard capitalization rates

Please note the Rode cap rate survey period pandemic, REITs have been net sellers of
was 15 May to 5 June. Most (about 70%) properties, which goes a long way in
of Rode’s survey respondents completed explaining the rise in cap rates. The reason for
the survey before the elections, which means this sell-off is the need to contain the loan-to-
the better sentiment regarding the election value (LTV) ratios in the light of declining
results is not fully incorporated in the second- market values. It underscores the risk of high
quarter cap rates. financial gearing during periods of economic
stagnation.
We discuss the movement in cap rates of the
different non-residential property types in The outlook for the growth in income streams
detail in the text that follows. from directly held office property continues
to be marred by poor property fundamentals,
Cap rate outlook such as above-average vacancy rates and,
therefore, weak real market rentals. This
Interest rates in general can affect the income should generally affect capitalization rates
yields investors expect on property in three negatively in the second half of 2024,
ways, viz. (1) the substitution principle meaning cap rates will tend to stay high,
(alternative, long-term investments like holding all other factors constant. The
10-year government bonds experience a outlook for retail, and especially industrial
change in yields), (2) changes in the cost of property, is better.
financial gearing (shorter-term interest
rates), and (3) changes in the market’s rating As explained above, another predictor of
of listed property funds like REITs. The capitalization rates is long-bond yields.
market’s rating of REITs is especially The yield of SA’s long-term bond (10 years
important as REITs are normally significant and longer) rose strongly to a monthly
buyers of institution-quality directly held average of 12,3% in April, the highest
properties, and a poor rating of REITs (high for the year (see chart below). This was
forward yields) means these funds want to due to a combination of factors, like
pay less for the same expected cash stream global interest rate cuts not occurring
(thereby raising capitalization rates of directly as expected and worries about SA’s
held properties). In fact, since the Covid-19 economic growth and elections.
Rode’s Report 2024:2 7 Standard capitalization rates

Source of data: IHS Markit

However, the story has changed since then, Thirdly, markets expect up to three interest
with long yields declining in South Africa and rate cuts in the US before the end
the US and, to a lesser extent, in Germany, as of 2024. This is due to a cooling US
shown on the second chart. Note that the SA economy, which can be seen in the labour
long-bond yields are on the right-hand axis. market.
So, what has changed?

Firstly, the European Central Bank and Some analysts are worried about a recession
the Bank of Canada cut interest rates in as the unemployment rate rose to 4,1%
June. This followed cuts in other Western in June. It was last this high in November
economies (like Switzerland) and many 2021. Inflation, as measured by the CPI,
emerging markets. also fell to 3% in June, less than market
expectations of 3,2%. This contributed
Secondly, South Africa’s election results and to markets lifting the odds for a first rate
formation of a new government (GNU) were cut in the US to around 95% in September,
received as broadly positive for economic based on 22 July data from the CME
growth over the medium term. Group.

Source of data: Investing.com

Rode’s Report 2024:2 8 Standard capitalization rates

All this means that the chance of the first local average of 10,5%. That said, vacancy rates
interest rate cut before the end of 2024 continue to improve, which could eventually
has also increased. The question is whether support rental growth, if this trend is
inflation will play along as it was still at sustained. We found nominal market rental
5,2% in May, above the 4,5% level where the growth still very low (+0,8%), as discussed in
SARB would like to see it. But looking at the Chapter 5.
bigger picture, better local economic growth
prospects and a high chance of the interest In the second quarter, capitalization
rate cycle turning over the short term, imply rates of grade-A multi-tenanted properties
a more favourable outlook for the property in Johannesburg decentralized ranged
market than before. from 10,1% in Waterfall to as high as
13,6% in Randburg/Ferndale. From the
Office capitalization rates two accompanying graphs, it is clear which
decentralized nodes are not investors’
Nationally favourites (the nodes with the highest
capitalization rate). They are Randburg,
Office capitalization rates of grade-A multi- Parktown, Midrand, Sunninghill and Rivonia.
tenanted decentralized properties in South Of course, there are others, but these are the
Africa averaged a weighted 11,3% in the ones that stand out on the two graphs.
second quarter of 2024. Cap rates have
Capitalization rates
hovered around this level since the fourth 15
Johannesburg decentralized grade-A offices

quarter of 2023.
Sm o o the d

14

13

Looking further back, office cap rates are 12

still well up from the pre-Covid (2019) level of

%

11

just under 10%. This reflects a sector still 10

suffering from weak fundamentals, such as 9

Sandton CBD
P a rk to wn

poor market rentals and elevated vacancies. 8

Rosebank
Midra nd

This is especially true for Johannesburg. That 00 02 04

Source of data: Rode's Time Series

06 08 10 12 14 16 18 20 22 24

said, these fundamentals have improved

somewhat, but not enough to reduce cap Capitalization rates
Johannesburg decentralized grade-A offices
rates. We now discuss the trends by city in the 15
Sm oothe d

text that follows. 14

Bryanston
R ivonia
Sunninghill
13 Randburg

Johannesburg 12
%

11

The office capitalization rate of grade-A

multi-tenanted properties in Johannesburg
10

decentralized averaged 11,8% in the second 9

02 04 06 08 10 12 14 16 18 20 22 24

quarter of 2024, unchanged from the first Source of data: Rode's Time Series

quarter of 2024. Cap rates remain

significantly up from their pre-Covid (2019) The top office nodes (the nodes with the
average of 10%. lowest cap rate) were Waterfall and
Rosebank CBD, where grade-A cap rates of
Johannesburg decentralized is still under multi-tenanted properties averaged just
pressure given its elevated vacancy rate of above 10% in the second quarter of 2024.
around 13%, which is above its long-term On the other hand, Sandton CBD, usually
Rode’s Report 2024:2 9 Standard capitalization rates

considered the top node, had an average Durban

grade-A cap rate of 10,5%, down slightly
from the beginning of the year. But it is much The average capitalization rate for grade-A
improved from pandemic levels. Durban decentralized office property
was 11,7% in the second quarter of 2024,
The differences in capitalization rates reflect down from 11,9% in the first quarter of 2024.
the market’s evaluation of these nodes. The Durban’s cap rate is still significantly higher
higher the capitalization rate, the worse than pre-Covid levels of close to 10%.
the expected growth in income streams
and/or the higher the perceived risk of the Capitalization rates
Durban decentralized grade-A offices
15

node (or individual property, as the case may La Lucia/Umhlanga Ridge

Sm o o the d

14

be). W e stwa y
Esse x Te rra ce
Be re a
13

Thus, risk and expected growth in rentals

12

%
are intimately linked. We also see this link in
11

the way rating agencies like Standard & Poor’s

10

evaluate the creditworthiness of countries

9

(high economic growth reduces risk of default

8
00 02 04 06 08 10 12 14 16 18 20 22 24

even when the debt-to-GDP ratio is high). Source of data: Rode's Time Series

Cap rates − unsurprisingly − have remained

Pretoria
the lowest at 10,7% in the flagship node of La
Lucia/Umhlanga, where they have improved
Our respondents are of the opinion that sharply from 2022 levels. This is thanks to
investors currently require a minimum net lower vacancies and stronger nominal market
income return of 11% to induce them to buy rental growth.
or sell prime multi-tenanted office properties
in Pretoria decentralized. 1 This is the same In contrast, minor nodes such as Berea and
percentage as in the first quarter of 2024. Essex Terrace have much higher cap rates.
However, we can discern a rising trend from Similar to Pretoria decentralized, there has
as far back as 2016 (see chart). been a strong upward trend, starting in
Capitalization rates
2016. The uptrend is especially clear when
15
Pretoria decentralized grade-A offices excluding the distorting pandemic years
14
Sm o o the d
2020-2022.
Brooklyn
Hatfield
13 Centurion

12
Midrand
Cape Town
%

11

10
Grade-A capitalization rates in Cape Town
9
decentralized averaged 9,9% in the second
8
quarter of 2024, down from 10,1% in the
00 02 04 06 08 10 12 14 16 18 20 22 24
first quarter of 2024.
Source of data: Rode's Time Series

1 Note that we report on standard capitalization rates. These assume the property is let at market-related rentals as distinct
from escalated contractual rentals, which may be far higher than market levels. See the Glossary (Annexure 1).
Rode’s Report 2024:2 10 Standard capitalization rates

The Mother City has the lowest (best) office continued the declining trend that started
cap rate of the major cities by some margin. in the first quarter of 2023. This is due to a
But taking a historical perspective, Cape low supply of industrial stock and strong
Town’s cap rate also shows an uptrend from demand.
2019, three years later than the other cities.
Cap rates remain the lowest (best) in Durban
and Cape Town. In comparison, cap rates in
Capitalization rates
Cape Town decentralized grade-A offices
14
Sm o o the d
Central Wits − the heart of the SA economy −
are notably higher. But note, we also report
13

12
strong fundamentals for the last-mentioned
11 conurbation in Chapter 7. In fact, in the
%

10 second quarter, nominal market rentals in

9
Clarem ont
Tyge r Va lle y
Central Wits grew the fastest of the nodes we
C e ntury C ity
W e stla k e track nationally.
8
00 02 04 06 08 10 12 14 16 18 20 22 24

Shopping centre capitalization

Source of data: Rode's Time Series

Industrial capitalization rates

rates
The chart shows the capitalization rate
trend of regional shopping centres in the
In the second quarter of 2024, capitalization
major conurbations. Regional centres are
rates of industrial leasebacks in the country’s
the second-largest type of mall and have
major industrial areas decreased (improved)
50 000 to 100 000 m² of rentable space (see
compared to the first quarter of 2024. Our
Annexure 1 for shopping centre definitions).
respondents believe that investors in
prime industrial properties with a leaseback
Rode’s survey results show that capitalization
covenant require a minimum net income yield
rates of regional shopping centres in South
of 9,5% in the country’s top cities and nodes.
Africa averaged 9,2% in the second quarter of
In today’s market, this is a fair return,
2024, down slightly from 9,3% in the first
provided the tenant is of AAA quality. For
quarter of 2024. Cap rates in 2024 so far have
comparative purposes, government bond
averaged a bit better than the 2023 average
yields of 10 years plus averaged 11,7% in
of 9,4%. Looking a few years back, national
June. Looking at the bigger picture, cap rates
weighted regional centre cap rates remain
are lower than the average of 9,8% in 2023,
well up compared to the 2019 average of
but marginally higher than the (pre-
7,9%. This reflects the under-pressure
pandemic) 2019 figure of 9,4%.
spending power as well as the construction
Capitalization rates boom before the pandemic.
Prime industrial leasebacks

Most of the major cities surveyed by Rode in

13

C a pe To wn
12 Durba n
P re to ria
Central W itwatersrand
the second quarter saw cap rates that were
11 more or less the same as at the beginning of
%

10
the year. Durban bucked the trend with cap
rates seeing some improvement.
9

8
00 02 04 06 08 10 12 14 16 18 20 22 24
We found that, nationally, the capitalization
Source of data: Rode's Time Series rates for the smaller community and
neighbourhood centres averaged 9,8% and
Regionally, industrial cap rates in the Central 10,4% respectively, both lower (better)
Witwatersrand, Durban and Cape Town have compared to the first quarter of 2024.
Rode’s Report 2024:2 11 Standard capitalization rates

Discount rates
Capitalization rates
Regional shopping centres
13

12

11
The discount rate is traditionally calculated as
10
the cap rate plus the expected constant
growth rate of the cash flow over the time
%

8
horizon of the analysis.
P re to ria
7 C a pe To wn
Central W itwatersrand
Durba n
The cap rate includes the risk of the subject
6
00 02 04 06 08 10 12 14 16 18 20 22 24
property, and the discount rate reflects the
total return reasonably expected by the
Source of data: Rode's Time Series

Retail property cap rates are currently market, given the risk. In good times (which
still elevated compared to historical levels, are gone for a long time to come) a typical
although some improvement has been discount rate calculation looked like this:
observed of late (see chart). Indeed, some
indicators, like mall vacancy rates, look Standard cap rate 9%
better. The average vacancy rate of all mall Constant growth of cash flow p.a. 5%
types declined further to 4,4% points in the Discount rate 14%
first quarter of 2024 from 4,6% in the fourth
quarter of 2023. However, it is still slightly up But today, both the cap rate and the growth
from the pre-pandemic level of 4% (based on in cash flow have changed. The former is
SAPOA/MSCI data). much higher and the latter much lower. Thus,
an example would look something like this:
Other indicators reveal a market under
pressure, such as retail sales in malls and Standard cap rate 10%
other shops. Total nominal retail sales Constant growth of cash flow 1%
showed growth of 4,3% over the first five Discount rate 11%
months of 2024, slowing from the 5,6%
achieved over the full 2023, based on Stats SA Note that a ‘standard cap rate’ assumes the
data. In real terms, sales in January to May property is fully let at market-rental levels.
2024 was roughly the same level as in January
to May 2023.
Numerous valuers do not realize that we are
now in a period of ultra-low cash-flow
According to the BER at Stellenbosch
growth, say, 1% per year, and these valuers
University, retail confidence was still weak in
are still using, say, 14% as a discount rate.
the second quarter of 2024 at 39 index points
Using a lower discount rate when using the
but did improve from 34 in the first quarter of
DCF valuation method would of course
2024. Rode believes the outlook has turned
increase the value, holding all other factors
more positive due to the prospect of better
constant. This is counter-intuitive, given
medium-term economic growth. Note that
today’s depressing fundamentals. So, what is
the expectation of better growth existed
wrong?
even before the announcement of the GNU.

Rode’s discussion on the performance of The answer is that the first year’s cash flow
retail sales and trading densities, as well as should, in our example, grow at 1% per year
vacancy rates by shopping centre size, is for, say, the first five years before capitalizing
provided in our sister publication Rode’s year 6’s expected market net income in
Retail Report. perpetuity at the end of year 5. A cash-flow
Rode’s Report 2024:2 12 Standard capitalization rates

growth rate of only 1% implies high vacancies In our experience, many valuers get this
and negative reversions at renewals. If the wrong.
subject property has a AAA tenant with
fixed escalations of 7% until the end of, say, Leaseback escalation rates
year 5, then the cash flow for the first five
years would not grow at 1% p.a. But, when Table 2.1 shows that the average leaseback
capitalizing in perpetuity at the end of, say, escalation rate (on new or renegotiated
year 5, the net market income of year 6 leases) was 7,2% in the second quarter of
should reflect the 1% p.a. market growth 2024, down from 7,3% in the first quarter of
rate during the first five years. Thus, the 2024. To give perspective, the average was
negative rental reversions, low market-rental 7,9% in 2019, before the Covid pandemic.
growth and high vacancies will more than The standard deviation of 0,8 percentage
compensate for the market-boosting effect of points in the second quarter of 2024 suggests
the lower discount rate during the first five escalation rates generally vary between
years. 6% and 8%. The escalation rate is an (often
unsuccessful) attempt by the market to
The problem is that, in our experience, few
forecast the average growth in market
valuers explain these cash-flow assumptions
rentals until the expiry of the lease.
in their valuation reports. The reason for this
However, we argue the market’s prognosis is
omission could be that the valuer does not
far too optimistic, as the subscribers to our
adjust the future cash flow during the
sister publication Rode’s SA Property Trends
discount period to reflect the tough times,
know.
meaning the property is overvalued.
Note that we define a leaseback as a lease
This could explain why MSCI calculations at
agreement with a prime tenant and which
the end of 2023 showed a yield on net
has, inter alia, a term at inception of 10 years
operating income of only 8,3% for the full
or longer. These leases are typically triple
universe of properties evaluated. Apart from
net (NNN), which means the tenant pays
perhaps the super-regional malls, there are
for all operating costs, including internal
few properties in SA that would currently sell
maintenance.
at a yield of 8,3%.

But what about the smaller malls, the office The initial rental on a new custom-built
properties that are graded A and B, not to property with a long lease and a single tenant
mention the industrial properties in the MSCI should never be accepted as reliable market
universe? The reader is invited to compare evidence. This is so because the developer
the 8,3% net yield with the capitalization would insist on an initial net yield that reflects
rates reported in this chapter. the (high) building costs and land value at the
time of negotiating the lease – which is only
In all SA’s CBDs, except Cape Town, the by chance equal to the ruling market rents at
capitalization rate is, say, 12%, while the the inception of the lease. This is especially
expected growth in cash flow is, say, -2% per true in the current market, where new
year (yes, minus 2). Thus, the discount rate is developments based on market-rental rates
10%, because that is the realistically expected are hardly viable.
total return over the next, say, five years! One
can only wonder how many property This concludes our analysis of capitalization
portfolios are overvalued. Auditors should and escalation rates. The capitalization rate
take note. tables follow.
Rode’s Report 2024:2 13 Standard capitalization rates

Table 2.1
Prime industrial leaseback escalation rates in South Africa
Quarter 2024:2
Change
Mean SD n Panellist codes
2024:2 less 2024:1
7,2 0,8 21 -0,1% AWP,BV,COR,CPS,EQV,GB,MAS,ME,ORI,PC,QU,RIO,
SA,SCM,SH,SHP,SPS,SUM,TG,TH,ZZ
Interpretation tip: It is dangerous to rely on one quarter’s figure, as it may be an outlier owing to small sample sizes.
Instead, consider the trend or contemplate using the average of at least two quarters for a more accurate assessment.
For this reason, the graphs accompanying this article are smoothed.

A standard capitalization rate (colloquially referred to as a cap rate) is the expected net operating income
for year 1, assuming the entire building is let at open-market rentals, divided by the purchase price. This
calculation ignores VAT, transfer duty and income tax, and assumes a cash transaction (not paper). All
references in Rode’s Report to “cap rates” and “capitalization rates” mean “standard capitalization rates”.
Capitalization rates for CBDs (excluding the Cape Town CBD) are of little use because when office
properties are sold, they are invariably converted to flats.

The high standard deviation from the mean capitalization rate for office and industrial properties in some
nodes, as reported in the accompanying capitalization rate tables, is indicative of the uncertainty prevailing
in these nodes or areas. With few sales taking place, the evidence on ruling capitalization rates is thin and
opinions vary more than in the more popular areas. This means the income-producing property market in
these nodes is even more inefficient than elsewhere, which makes the valuation of these properties a rather
hazardous exercise.

We are indebted to our expert capitalization rate panel, comprising leading brokers who know their market
segments intimately. This survey would not be possible without their invaluable contributions. Codes of
those panellists who supplied information for this quarter's survey appear in the tables on the following
pages. An explanation of the panellist codes can be found on p. vii.
Rode’s Report 2024:2 14 Standard capitalization rates

Table 2.2
Survey of capitalization rates (%)
Office buildings
Means for quarter 2024:2
Grade A: Grade A: Grade B: Grade C:
Best location Multi-tenant Leaseback Multi-tenant Multi-tenant
Mean SD n Mean SD n Mean SD n Mean SD n
Johannesburg CBD 12,6 0,4 3 11,4 0,2 3 13,4 0,5 3 14,4 0,5 3
Braamfontein 12,6 0,7 3 11,4 0,5 3 13,4 0,6 3 14,4 0,5 3
Parktown 11,8 0,7 3 11,9 0,8 4 13,4 0,9 3 14,8 0,7 3
Rosebank 10,3 0,2 5 10,2 0,5 5 11,3 0,3 5 12,5 0,8 5
Bedfordview 12,4 0,7 4 11,8 0,6 4 13,0 0,8 4 13,7 0,4 4
Sandton CBD 10,5 0,4 4 10,2 0,3 4 11,8 0,5 4 12,9 0,7 4
Rivonia 12,2 0,7 4 11,8 0,8 5 13,2 0,8 5 14,3 0,8 5
Bryanston 10,8 0,4 5 10,2 0,3 5 11,7 0,6 5 12,3 0,2 5
Sunninghill 13,0 0,6 5 12,5 0,9 3 14,0 1,1 5 14,9 0,9 5
Randburg Ferndale 13,6 0,7 4 12,6 0,8 4 14,1 1,0 4 15,1 0,8 4
Midrand 11,8 0,5 5 10,9 0,3 5 13,0 0,6 5 13,9 0,9 5
Waterfall 10,1 0,5 5 9,7 0,7 5 12,1 0,9 3 - - -
Germiston CBD 13,3 0,2 3 12,4 0,5 3 14,4 0,2 3 15,2 0,4 3
Pretoria CBD 12,3 0,3 2 11,5 0,7 3 12,5 0,9 4 13,2 0,7 4
Hatfield 11,0 0,8 4 10,6 0,3 3 11,7 1,0 4 12,6 0,5 4
Brooklyn 10,9 0,2 3 10,8 0,6 3 11,4 0,7 4 12,4 0,5 4
Centurion 11,0 0,0 4 10,8 0,4 4 11,6 0,6 5 12,8 0,6 5
Nieuw Muckleneuk 11,1 0,7 3 10,7 0,3 3 11,5 0,5 3 12,6 0,4 4
Menlyn/Lynnwood 10,6 0,8 4 10,2 0,3 3 11,0 0,6 4 12,7 0,6 4
Vaal Triangle 13,4 0,9 3 11,7 0,3 3 13,7 0,3 2 14,5 0,5 3
Mbombela 11,1 0,4 6 10,9 0,2 3 12,1 0,4 6 12,8 0,7 6
Polokwane 12,1 0,1 3 11,2 0,2 4 12,6 0,7 4 13,2 0,7 4
Durban CBD 13,3 1,0 4 12,6 1,0 3 13,8 1,4 5 14,3 0,5 4
Berea 12,8 1,3 4 12,0 0,8 3 13,0 0,0 3 13,6 0,8 4
Essex Terrace 11,9 0,1 3 11,3 0,8 4 12,0 0,7 4 12,5 0,7 3
Westway 11,5 0,8 5 11,3 0,9 5 11,7 0,6 5 12,1 0,6 4
La Lucia Ridge 10,6 0,5 6 10,5 0,4 5 11,0 0,7 3 12,2 1,1 4
Pietermaritzburg 12,6 1,1 3 11,8 0,8 2 13,0 1,0 2 13,6 1,0 3
Cape Town CBD 9,9 0,1 2 9,8 0,2 3 11,0 0,0 2 12,0 0,0 2
Bellville CBD 12,0 - 1 11,4 0,4 2 12,4 0,9 2 13,0 1,0 2
Bellville Tyger Valley 10,1 0,6 2 10,1 0,6 2 10,5 0,5 3 11,2 0,6 3
Century City 9,9 0,2 3 9,8 0,3 3 11,3 0,3 2 12,0 - 1
Westlake 9,8 - 1 - - - 12,3 - 1 13,0 - 1
Claremont 9,6 0,4 3 9,9 0,1 3 10,6 0,3 3 11,6 0,5 2
Gqeberha CBD 10,5 - 1 10,8 - 1 12,0 1,0 2 13,0 1,0 2
Gqeberha dec. 10,3 0,7 3 10,1 0,7 3 11,8 1,2 3 13,2 1,5 3
East London CBD 11,8 - 1 11,0 - 1 12,4 0,4 3 12,9 0,7 3
East London dec. 11,6 0,6 2 11,3 - 1 12,9 0,9 2 13,4 0,6 2
Bloemfontein CBD 10,6 1,0 4 10,2 0,7 4 11,3 0,8 4 12,0 0,7 4
Bloemfontein dec. 11,0 0,9 3 10,6 0,5 3 11,9 0,8 3 12,3 0,9 3
George Central - - - - - - - - - - - -
George dec. - - - - - - - - - - - -
Windhoek 10,0 0,0 2 9,6 0,4 2 10,1 0,1 2 10,6 0,1 2
n = Number of respondents
- = Not available or fewer than two respondents
SD = See Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2024:2 15 Standard capitalization rates

Table 2.3
Change in capitalization rates (% points)
Office buildings
Means for quarter 2024:2 less quarter 2024:1
Grade A: Grade A: Grade B: Grade C:
Best location Multi- Lease- Multi- Multi- Panellist codes
tenant back tenant tenant
Johannesburg CBD 0,1 0,1 0,0 0,0 PVS,QU,TH
Braamfontein 0,1 0,0 0,1 0,0 PVS,QU,TH
Parktown -0,3 0,0 0,0 0,2 OSO,PVS,QU,TH
Rosebank 0,0 0,0 0,0 0,0 OSO,PVS,QU,SHP,TH
Bedfordview 0,0 0,0 0,0 0,1 OSO,PVS,QU,TH
Sandton CBD -0,3 -0,1 0,0 -0,2 OSO,PVS,QU,SHP,TH
Rivonia -0,1 0,0 0,0 0,0 OSO,PVS,QU,SHP,TH
Bryanston 0,0 0,0 -0,1 0,0 OSO,PVS,QU,SHP,TH
Sunninghill 0,1 0,2 0,2 0,3 OSO,PVS,QU,SHP,TH
Randburg Ferndale 0,0 0,0 0,0 0,0 OSO,PVS,QU,TH
Midrand -0,1 -0,1 0,0 0,1 OSO,PVS,QU,SHP,TH
Waterfall 0,0 0,0 - - OSO,PVS,QU,SHP,TH
Germiston CBD 0,0 0,0 0,0 0,1 PVS,QU,TH
Pretoria CBD 0,1 0,0 0,0 0,0 CRI,PVS,QU,TH
Hatfield 0,0 0,0 0,0 0,0 CRI,PVS,QU,TH
Brooklyn 0,1 0,0 0,0 0,0 CRI,PVS,QU,TH
Centurion 0,0 0,0 0,0 0,0 CRI,MAS,PVS,QU,TH
Nieuw Muckleneuk 0,0 0,1 0,1 0,0 CRI,PVS,QU,TH
Menlyn/Lynnwood 0,0 0,1 0,0 0,0 CRI,PVS,QU,TH
Vaal Triangle 0,0 0,0 0,3 0,1 PVS,QU,TH
Mbombela 0,0 0,0 0,0 0,0 KEL,MPV,ORI,PG,PVS,QU
Polokwane 0,0 0,0 0,0 0,0 PVS,QU,TG,TH
Durban CBD 0,3 0,3 0,3 -0,2 AWP,QU,SA,SPS,TH,ZZ
Berea -0,1 -0,3 0,0 0,1 AWP,QU,SA,SPS,ZZ
Essex Terrace -0,1 -0,2 -0,3 -0,3 AWP,QU,SA,SPS,ZZ
Westway -0,2 -0,4 -0,5 -0,6 AWP,QU,SA,SPS,ZZ
La Lucia Ridge -0,3 -0,2 -0,4 -0,4 AWP,QU,SA,SPS,TH,ZZ
Pietermaritzburg 0,4 0,0 0,0 0,0 QU,SPS,TH,ZZ
Cape Town CBD 0,2 0,2 0,0 0,0 QU,RIO,TH
Bellville CBD 1,3 0,8 0,7 0,7 QU,RIO,SCM
Bellville Tyger Valley -0,6 -0,6 -0,7 -0,8 QU,SCM,TH
Century City 0,1 0,1 -0,3 0,0 QU,RIO,TH
Westlake 0,0 - 0,0 0,0 QU
Claremont -0,3 0,1 0,0 0,1 COR,QU,TH
Gqeberha CBD 0,3 0,1 0,3 0,5 QU,SUM
Gqeberha dec. -0,1 -0,2 0,1 0,4 BV,QU,SUM
East London CBD 0,0 0,0 0,0 0,0 CAP,QU,TH
East London dec. 0,0 0,0 0,0 0,0 CAP,QU,TH
Bloemfontein CBD -0,5 -0,5 -0,2 0,0 EQV,NR,QU,TH
Bloemfontein dec. 0,0 -0,1 0,2 0,3 EQV,QU,TH
George Central - - - -
George dec. - - - -
Windhoek 0,1 0,0 0,1 0,1 PVN,QU
Rode’s Report 2024:2 16 Standard capitalization rates

Table 2.4
Survey of capitalization rates (%)
Industrial buildings
Means for quarter 2024:2
Prime leaseback Prime quality Secondary Prime industrial
Best location (AAA Tenant) non-leaseback quality building Park
Mean SD n Mean SD n Mean SD n Mean SD n
Central Wits 9,6 0,9 7 9,9 0,7 7 11,3 0,7 7 10,6 0,7 7
West Rand 10,2 0,5 5 10,7 0,8 5 11,5 0,6 5 10,7 0,7 5
East Rand 9,2 0,8 9 10,2 0,8 9 11,2 0,8 9 10,2 0,6 9
Far East Rand 10,1 0,5 5 11,0 0,7 5 11,7 0,5 5 10,8 0,4 5
Pretoria 9,8 0,7 4 10,8 0,8 4 11,8 1,0 4 10,3 0,3 4
Vaal Triangle 10,7 0,6 3 11,4 0,8 3 11,9 0,4 3 11,0 0,7 3
Mbombela 10,3 0,3 2 10,7 0,4 6 11,9 0,6 6 10,1 0,2 6
Polokwane 10,3 0,5 4 11,1 0,7 3 11,6 0,9 4 10,7 0,5 4
Durban 9,0 0,4 7 9,7 0,7 7 11,1 1,1 7 10,1 0,8 7
Pietermaritzburg 10,9 0,9 3 11,2 1,0 3 11,8 1,0 3 10,7 0,9 4
Cape Town 9,0 0,0 3 9,6 0,1 3 9,9 0,3 3 9,6 0,1 3
Gqeberha 9,3 0,3 2 9,5 0,4 3 10,7 0,5 3 10,0 0,4 3
East London 10,3 0,5 3 10,5 0,4 3 11,7 0,3 3 11,1 0,7 3
Bloemfontein 10,3 0,3 4 10,8 0,3 2 11,2 0,2 4 10,2 0,8 4
George - - - - - - - - - - - -
Windhoek 9,4 0,1 2 9,8 0,3 2 10,3 0,3 2 10,1 0,4 2
n = Number of respondents
- = Not available – fewer than two respondents
SD = See Glossary of terms and abbreviations in Annexure 1.

Table 2.5
Change in capitalization rates (% points)
Industrial buildings
Means for quarter 2024:2 less quarter 2024:1
Prime Secondary Prime
Prime
Best location non- quality industrial Panellist codes
leaseback
leaseback building park
Central Wits -0,2 -0,3 -0,3 -0,2 CPS,GB,OSO,PVS,QU,SHP,TH
West Rand 0,0 0,0 0,0 0,0 OSO,PVS,QU,SHP,TH
East Rand -0,3 0,0 0,1 -0,2 CPS,GB,ME,OSO,PPR,PVS,QU,SHP,
TH
Far East Rand 0,0 0,0 0,0 0,0 OSO,PVS,QU,SHP,TH
Pretoria 0,0 0,0 0,0 0,0 MAS,PVS,QU,TH
Vaal Triangle 0,1 0,0 0,0 0,0 PVS,QU,TH
Mbombela 0,0 0,0 0,0 0,2 KEL,MPV,ORI,PG,PVS,QU
Polokwane 0,0 0,0 0,0 0,0 PVS,QU,TG,TH
Durban -0,2 -0,3 0,0 -0,2 AWP,PC,QU,SA,SH,SPS,TH
Pietermaritzburg 0,1 -0,1 0,1 -0,2 QU,SA,SPS,TH
Cape Town 0,0 0,0 -0,2 0,2 COR,QU,TH
Gqeberha 0,1 0,0 0,2 0,1 BV,QU,SUM
East London 0,2 0,0 0,0 0,0 CAP,QU,TH
Bloemfontein -0,2 -0,1 0,0 -0,5 EQV,NR,QU,TH
George - - - -
Windhoek 0,1 0,1 0,1 0,1 PVN,QU
Rode’s Report 2024:2 17 Standard capitalization rates

Table 2.6
Survey of capitalization rates (%): Shopping centres
Means for quarter 2024:2
Super-regional Regional Small regional Community
Best location
Mean SD n Mean SD n Mean SD n Mean SD n
Witwatersrand 9,2 1,2 3 9,2 1,1 3 9,7 1,2 3 10,2 1,1 3
Pretoria 9,2 1,0 3 9,3 1,1 3 10,0 1,3 3 10,1 0,8 3
Vaal Triangle - - - 9,9 1,0 3 10,2 1,0 3 10,6 1,1 3
Mbombela - - - 8,4 0,8 5 8,7 0,5 5 8,8 0,4 5
Polokwane 9,9 1,3 3 10,0 1,4 3 10,3 0,1 2 10,8 1,4 3
Durban 8,7 0,6 6 9,2 0,7 6 9,4 0,7 6 9,8 1,1 6
Pietermaritzburg 8,9 0,5 3 9,2 0,6 5 9,8 0,7 5 9,8 0,7 5
Cape Town 8,6 0,7 3 8,7 0,7 3 8,9 0,6 3 9,2 0,2 2
Gqeberha-Kariega - - - 8,3 0,3 2 9,1 0,3 3 9,5 0,7 3
East London 9,6 - 1 9,9 - 1 10,0 0,9 3 10,3 0,6 3
Bloemfontein 9,1 0,6 2 9,2 0,7 2 9,4 0,7 2 9,8 0,4 3
Platteland - - - 9,5 0,8 2 9,9 0,4 3 10,2 0,6 4
Townships 8,9 0,9 2 9,2 1,2 2 9,6 1,1 2 10,0 1,0 2
George - - - - - - - - - - - -
Windhoek 8,3 0,3 2 8,6 0,6 2 8,9 0,4 2 9,3 0,3 2
n = Number of respondents
- = Not available
SD = See Glossary of terms and abbreviations in Annexure 1.

Table 2.6 (continued)

Survey of capitalization rates (%): Shopping centres
Means for quarter 2024:2
Big box/Retailer
Neighbourhood Local convenience
Best location warehouse
Mean SD n Mean SD n Mean SD n
Witwatersrand 10,7 1,0 3 11,7 1,1 3 10,4 1,0 3
Pretoria 10,8 1,0 3 12,0 1,1 3 10,1 0,7 3
Vaal Triangle 11,4 0,8 3 11,8 1,0 3 10,4 1,0 3
Mbombela 9,5 0,8 5 10,1 0,2 5 9,8 0,6 6
Polokwane 11,3 0,6 3 11,7 0,6 3 10,4 0,8 3
Durban 10,5 1,3 6 10,7 1,2 6 9,9 0,7 6
Pietermaritzburg 10,4 0,5 5 10,4 0,5 5 10,0 0,7 5
Cape Town 9,3 0,5 3 9,6 0,5 3 9,1 0,1 3
Gqeberha-Kariega 9,9 0,4 3 10,1 0,4 3 9,3 0,2 3
East London 10,5 0,3 2 11,1 0,1 3 10,3 0,5 3
Bloemfontein 10,2 0,8 3 11,3 0,0 2 10,4 0,9 4
Platteland 11,0 0,9 4 11,2 0,8 4 10,5 0,5 3
Townships 10,8 0,5 2 11,4 0,4 2 10,3 0,3 2
George - - - - - - - - -
Windhoek 9,8 0,3 2 9,8 0,3 2 9,8 0,3 2
n = Number of respondents
- = Not available
SD = See Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2024:2 18 Standard capitalization rates

Table 2.7
Change in capitalization rates (% points): Shopping centres
Means for quarter 2024:2 less quarter 2024:1
Super Small Commu-
Best location Regional Panellist codes
regional regional nity
Witwatersrand 0,1 0,1 0,1 0,0 PVS,QU,TH
Pretoria 0,1 0,1 0,1 0,1 PVS,QU,TH
Vaal Triangle - 0,1 -0,1 0,1 PVS,QU,TH
Mbombela - 0,0 0,0 0,0 KEL,MPV,ORI,PG,PVS,QU
Polokwane 0,0 0,0 -0,1 0,1 PVS,QU,TH
Durban -1,2 -0,9 -0,8 -0,7 AWP,QU,SA,SPS,TH,ZZ
Pietermaritzburg - - -0,4 -0,6 QU,SA,SPS,TH,ZZ
Cape Town 0,1 0,1 0,1 0,1 QU,SCM,TH
Gqeberha-Kariega - -0,6 -0,2 -0,1 BV,QU,SUM
East London 0,1 0,1 0,0 0,1 CAP,QU,TH
Bloemfontein -0,1 -0,2 -0,5 -0,3 EQV,NR,QU,TH
Platteland - 0,0 0,0 0,0 BVF,EQV,MAS,QU,TH
Townships 0,1 0,0 0,1 0,0 QU,TH
George - - - -
Windhoek 0,0 0,1 0,1 0,1 PVN,QU

Table 2.7 (continued)

Change in capitalization rates (% points): Shopping centres
Means for quarter 2024:2 less quarter 2024:1
Big box/
Neighbour- Local
Best location Retailer Panellist codes
hood convenience
warehouse
Witwatersrand 0,0 0,1 0,1 PVS,QU,TH
Pretoria 0,1 0,0 0,1 PVS,QU,TH
Vaal Triangle 0,0 0,0 0,0 PVS,QU,TH
Mbombela 0,0 0,0 0,0 KEL,MPV,ORI,PG,PVS,QU
Polokwane 0,0 0,0 0,0 PVS,QU,TH
Durban -0,5 -0,3 -0,4 AWP,QU,SA,SPS,TH,ZZ
Pietermaritzburg -0,6 -0,5 -0,6 QU,SA,SPS,TH,ZZ
Cape Town 0,0 0,1 0,1 QU,SCM,TH
Gqeberha-Kariega 0,1 0,1 -0,2 BV,QU,SUM
East London 0,0 0,2 0,2 CAP,QU,TH
Bloemfontein -0,7 -0,1 0,1 EQV,NR,QU,TH
Platteland 0,0 0,0 0,0 BVF,EQV,MAS,QU,TH
Townships 0,0 0,0 0,1 QU,TH
George - - -
Windhoek 0,1 0,1 0,1 PVN,QU
Rode’s Report 2024:2 19 Standard capitalization rates

Table 2.8
Survey of capitalization rates (%): Street-front shops
Means for quarter 2024:2
Metro CBD Decentralized
Best location
Mean SD n Mean SD n
Johannesburg 11,5 1,1 3 - - -
Pretoria 11,9 1,4 3 12,2 0,6 3
Vaal Triangle - - - 12,6 0,7 3
Mbombela 12,1 0,4 6 10,8 0,3 6
Polokwane 11,2 0,2 4 11,2 0,3 2
Durban 11,1 0,9 5 11,5 1,3 6
Pietermaritzburg 11,2 0,4 4 11,6 0,4 4
Cape Town 9,9 0,3 4 9,8 0,7 5
Gqeberha 10,4 0,1 2 10,4 0,1 2
East London 11,6 0,4 3 11,0 0,0 3
Bloemfontein 11,2 0,1 4 10,9 0,2 3
George - - - - - -
Windhoek 9,5 0,0 2 9,5 0,0 2
n = Number of respondents
- = Not available
SD = See Glossary of terms and abbreviations in Annexure 1.

Table 2.9
Change in capitalization rates (% points): Street-front shops
Means for quarter 2024:2 less quarter 2024:1
Best location Metro CBD Decentralized Panellist codes
Johannesburg 0,1 - PVS,QU,TH
Pretoria 0,0 0,1 PVS,QU,TH
Vaal Triangle - 0,0 PVS,QU,TH
Mbombela 0,0 0,0 KEL,MPV,ORI,PG,PVS,QU
Polokwane 0,0 0,1 PVS,QU,TG,TH
Durban -0,6 -0,2 AWP,QU,SA,SPS,TH,ZZ
Pietermaritzburg 0,0 -0,5 QU,SPS,TH,ZZ
Cape Town 0,1 0,4 COR,QU,RIO,SCM,TH
Gqeberha 0,5 0,3 BV,QU,SUM
East London 0,1 0,0 CAP,QU,TH
Bloemfontein 0,0 -0,3 EQV,NR,QU,TH
George - -
Windhoek 0,0 0,0 PVN,QU
Rode’s Report 2024:2 20 Capitalization rate equations

Chapter 3: Capitalization rate equations

How to estimate capitalization

rates – anywhere
Kobus Lamprecht

This chapter provides the reader with rental rates allows the researcher to build a
a handy, updated tool to estimate the regression model with which to estimate the
market capitalization rates of office and capitalization rate. An important risk factor
industrial properties anywhere in South typically not reflected in a rental is the design
Africa, provided the valuer is confident about of the building, as it affects its ability to be re-
the subject property’s gross-market-rental let. Here one thinks of purpose-built buildings
rate. For a definition of ‘gross’ rent, see the built for a specific tenant.
Glossary in Annexure 1.
National equation for office buildings
As the reader will see below, in this
cross-sectional study, 1 market-rental rates In our regression analysis of office buildings,
are amazingly successful in explaining the we use the market capitalization rates
level of capitalization rates. On reflection, (dependent variable) and gross market-rental
though, this should not be all that surprising, rates (predictor or independent variable)
considering that all the good and bad about of grades A, B and C buildings in the areas
a property are encapsulated in the ruling surveyed by Rode’s Report (RR). The source
market-rental rate. Here we think of rental- of the updated dependent and predictor
level drivers such as: variables is this issue of RR. The regression is
based on 54 observations in decentralized
• Location nodes across the country.
• Typology (offices vs industrial property vs
shopping centres, etc.) The updated equation is:
• Risk (examples of varying risk profiles
are a leaseback compared with a multi- office capitalization rate % = 16,798 –
tenanted property; the robustness of the (0,0407* gross rental)
covenant)
• Grade/age. where:
• Condition
gross rental = the market gross rental rate per
Thus, the moderately strong relationship rentable m2 per month for grade A, B or C
between capitalization rates and market- office buildings in quarter 2024:2.

1 A cross-sectional analysis is a type of observational study that analyses data from a population, or a representative subset, at a
specific point in time. This is in contrast to longitudinal analyses, for instance using historical trends to do forecasts.
Rode’s Report 2024:2 21 Capitalization rate equations

The r-squared = 0,71 (which means the The updated equation is:
level of market rentals explains 71% of
the variation in capitalization rates, without industrial capitalization rate % = 13,685 –
controlling for other predictors). The (0,0589 * gross rental)
standard error (SE) is 0,57 and n = 54.
where:
Readers should note that it is not advisable
to use this function for gross market- gross rental = the gross market rental per
rental rates that fall much outside the range rentable m2 per month as in quarter 2024:2
of R72/m²/month to R184/m²/month. for prime non-leaseback industrial space of
1 000 m2 in primary and secondary cities.
Example:
The r-squared = 0,72 (which means market-
If the market gross office rental rate is rental levels explain 72% of the variations in
R150 per rentable m2 per month, then the capitalization rates, without controlling for
office capitalization rate % is: other predictors). The standard error (SE) is
0,34 and n = 14.
= 16,798 – (0,0407 * 150)
= 10,7%. It is not advisable to use this function for gross
market-rental rates that fall much outside the
National equation for industrial range of R34/m²/month to R72/m²/month.
properties Also, remember to use the rental rate
applicable to a notional floor area of 1 000 m²
(even if the subject property’s actual floor
This national equation expresses the
area is completely different).
relationship between the capitalization rates
and gross market-rental rates of prime non-
Example:
leasebacks. Please note, gross market-rental
rates are those applicable to 1 000-m2 units.
If the gross industrial rental for a 1 000 m²
The source of the data is this issue of Rode’s
building, located in a primary or secondary
Report.
city, is R50 per rentable m2 per month, then
The industrial regression equation, which the industrial capitalization rate % is:
is based on 14 observations, includes most
major primary and secondary industrial = 13,685 – (0,0589 * 50)
cities. = 10,7%. 

Tip
To reduce volatility in the latest survey data, the reader is advised also to consult the regression
equation and its applicable rental rate in the previous issue of RR, and to consider using a two-
quarter average capitalization rate (unsurveyed) if necessary.
Rode’s Report 2024:2 22 Capitalization rate equations

Office unsurveyed capitalization rate

16,0

Capitalization rate (%)

15,0
y = -0,0407x + 16,798
14,0 r² = 0,71

13,0

12,0

11,0

10,0

9,0
65 95 125 155 185

Gross market rental (R/m2/month)

Industrial unsurveyed capitalization rate

12,0
Capitalization rate (%)

11,5
y = -0,0589x + 13,685
r² = 0,72
11,0

10,5

10,0

9,5

9,0
30 45 60 75

Gross market rental (R/m2/month)

Rode’s Report 2024:2 23 Listed property

Chapter 4: Listed property

Listed property is back

on investors’ radar
Kobus Lamprecht

Source of data: S&P Global

Listed property was the best performer of the Perhaps it is worthwhile to touch on rental
different asset classes in the first half of 2024, reversion rates. The rental reversion rate is
outshining the general equity market, cash the difference between old, escalated rent at
and bonds. This comes after share prices of expiry of the lease and the new rental
listed property ended the second quarter negotiated after expiry of a lease or the
of 2024 with a great rally on optimism about (market) rental applicable to a new tenant.
the new government and hopes that the
The rental reversions for retail property were
local interest-rate-cutting cycle will start
mostly positive and even picked up pace,
before the end of 2024. The SA Listed
Property Index (SAPY) was up by 6,3% at while they generally improved for industrial
the end of June compared to the end of property. The same cannot be said for office
2023. property, with large negative rental reversion
rates persisting.
At the end of the chapter, we report our
findings on the latest listed property financial Nevertheless, dividend growth remains
results up to February and March 2024. scarce as REITs have held back cash for
The results were a mixed bag, but operations or expansions while keeping debt
encouragingly some operating metrics levels under control, especially in the current
improved, like rental reversion rates. high-interest-rate environment.
Rode’s Report 2024:2 24 Listed property

6,4% so far in 2024. However, looking at

Ye a r ly c ha nge in lis te d pr ope r ty pr ic e s
vs
Ye arly change in liste d prope rty y ie lds

SAPY yield
15
the bigger picture, the SAPY Index at the end
10

of June was still about 5% below the level of

( %- points; y- o- y)
SAPY price

Change in yields
5

-5
end February 2020, just before Covid hit
80
-10 South Africa.
40 -15

Listed property versus other

Change in price

0
( %; y- o- y)

-40
asset classes
-80
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Source of data: J SE
SA REITs, which exclude property
Looking ahead, it looks more certain now developers and non-SA REITs, delivered a
total return1 of 11,1% in the first half
that the first local interest rate cut could well
of 2024, as shown on the chart (see page
occur before the end of 2024, with more
25). This means that listed property
easing to follow in 2025. Some economists performed the best of the various
(like the BER at Stellenbosch University) asset classes, according to data published
have upgraded their view of economic by the SA REIT Association. This comes
growth for 2025 to around 2%, which is after a stellar June (+9,4%) when share
an improvement from the roughly 1% prices of property companies rallied. Let
expected in 2024. This better outlook has us remember that radical parties are
already supported listed property prices and not part of the new government,
could lead to further gains if this outlook which is positive for property rights.
materialises. A positive is that investors are
Equities, represented by the JSE All Share
looking increasingly at the sector and some,
Index, performed second best with a total
like the PIC, have already lifted their stake in
return of 5,8% in the first half of 2024
several REITs.
as SA-focused companies shone after the
The increase in listed property prices in the elections. Bonds came in third and cash 2 was
first half of 2024 has led to slightly lower fourth best. This implies all the asset classes,
trailing income yields (calculated on the latest except cash, saw an increase in total return
available historical net income), as shown on in real terms, after deducting inflation of just
the chart. The dividend yield has averaged above 5%.

1 Income yield plus capital return

2The Alexander Forbes Short-term Fixed Interest (STeFI) Composite Index is a proprietary index that measures the performance of
short-term fixed-interest or money-market investment instruments in South Africa. It is a benchmark index constructed by Alexander
Forbes, calculated and published daily by the South African Futures Exchange (SAFEX), and has become the industry benchmark for
cash-equivalent investments (i.e. up to 12 months).
Rode’s Report 2024:2 25 Listed property

Source of data: SA REIT Association; Merchant West Investments; SAFEX;

S&P Global; Rode & Associates

Table 4.1
Total returns on listed property funds
Recent performance and past five years
Performance of individual stocks
Jan-June 24 Jan-Dec 23 5 years to June 24*
Accelerate -14,5% -31,7% -22,8%
Attacq 21,1% 31,6% 1,7%
Burstone (Investec) -4,9% -5,1% -4,0%
Delta 0,0% -25,8% -33,2%
Dipula-B 10,6% 10,1% 5,4%
Emira 26,9% -2,0% 7,4%
Equites -3,6% -6,1% -0,8%
Fairvest-A 4,2% 14,6% 20,3%
Fairvest-B 17,7% 24,1% 9,2%
Fortress-B 26,2% 48,2% -0,7%
Growthpoint 9,9% -10,0% -3,4%
Heriot 15,2% 27,6% 15,1%
Hyprop 0,9% 3,3% -5,7%
Octodec 11,8% 12,5% -0,3%
Redefine 10,2% 3,5% -6,5%
Resilient 10,9% -9,5% 2,9%
SA Corporate 17,1% 8,3% 8,8%
Safari -3,4% 10,6% 17,9%
Spear 10,7% 20,0% 7,0%
Stor-Age 6,0% 4,0% 7,9%
Texton 32,8% 2,8% 3,5%
Vukile 13,5% 16,2% 5,2%
*Annualized
Source of data: SA REIT Association; Merchant West Investments
Rode’s Report 2024:2 26 Listed property

Performance of SA-focused JSE-listed More than ten SA listed property companies

property funds reported results in the second quarter 3
of 2024. These were for the half- and full-year
In Table 4.1 above we show the individual periods ended February and March 2024.
performance of some JSE-listed property
funds for the first half of 2024, the full Here are some of Rode’s findings:
2023 and the past five years, expressed as
total returns (income yield plus capital • Distribution or dividend growth was
return). scarce. Only Spear and Vukile managed
to declare a dividend that was higher
The total returns delivered by funds in compared to the previous period.
2023 show a mixed performance. However, In Table 4.2 we show the change in
the total returns were mostly in positive distributions of various REITs.
territory in the first half of 2024, with many
counters showing double-digit total returns. • Four of the five REITs with office assets
The ones that stood out on the positive had negative rental reversion rates,
side with a total return of above 20% even worse than a year ago. Some
were Texton, Emira, Fortress-B and Attacq. were very negative, close to 30%
Encouragingly, there were not many (Burstone and Dipula). For an analyst
counters with a negative total turn, viz. or reader, it is important to take
Equites, Burstone, Safari and Accelerate. note of how long some of the leases
These REITs disappointed investors in the were that expired and how much of
latest reporting period, with declining the portfolio was renewed as this can
distributions or by not declaring a dividend greatly influence the change in reversion
(Accelerate). rates.

Accelerate, the owner of the struggling • Office vacancy rates varied significantly
Fourways Mall, had the worst total return between REITs.
(-14,5%) in the first half of 2024. It is
struggling with excessive vacancies at its • Retail vacancy rates of REITs varied
retail and commercial properties in SA. between 1,9% and 6,6%. Accelerate was
Its retail vacancy rate rose to 13,9% in the clear outlier with its vacancy rate at
the year to March 2024 from 10,4% the 13,9%.
previous year. It has the second highest
loan-to-value ratio (49%) of the REITs • Retail-rental reversion rates improved
that reported their financials. It aims to for all the REITs analysed by Rode and were
reduce its LTV ratio through a rights offer positive for all except Redefine (see chart
(concluded in June) and asset disposals. below).

3
Accelerate delayed the publishing of its results to the third quarter (July) from June.
Rode’s Report 2024:2 27 Listed property

*The data is based on either the six months or year ended February/March.
Source: Financial results of the various listed property funds

• Industrial rental reversion rates improved Its distribution payout ratio increased to 95%
for most REITs. from 92%. Spear said 55% of its total portfolio
had solar PV infrastructure.
• Loan-to-value (LTV) or gearing ratios have
not changed materially. They are being Spear’s office portfolio saw a slight increase
kept in control by asset sales, by obtaining in its vacancy rate to 15,6%. Its office rental
capital from shareholders (like through a reversion rate was a negative 4,7%, but this
rights issue) and holding back some money was a smaller decline than that of most other
from distributable income. REITs. Its industrial portfolio had a vacancy
• The average distributable income payout rate of only 3% and a positive rental reversion
ratio was 91%, slightly less than a year ago. rate of 6,1%.
Three REITs reduced their payout ratios,
while some warned that they could do so Redefine, the second-largest SA REIT, also
in future. The only REIT that increased its saw a positive rental reversion (+4%) in its
payout ratio was Western Cape-focused industrial portfolio (12% of global portfolio) in
Spear. the half-year ended February 2024, picking
up from 1,3% a year ago. However, Redefine
We now delve into the financial results of cautioned that it applied to only a small
individual companies. portion of its industrial portfolio.

Spear saw its LTV ratio decline sharply Its local office property portfolio (22% of its
to 31,6% in the year ended February 2024 global portfolio) saw its vacancy rate decline
from 36,3% in the previous year, boosted to 12,3% from 14,3%. However, office rentals
by the sale of the Liberty Building in Cape on reversion fell by 13,6%. Redefine said
Town. Spear’s distribution per share rose it had managed to lift asking rentals in
by 3,8% − one of only two REITs to declare Rosebank and certain parts of Western Cape.
a growth in distribution (as mentioned It helped that about 95% of its office portfolio
earlier). is grade A+ and A space.
Rode’s Report 2024:2 28 Listed property

Source of data: Rode & Associates; Company financials

Redefine saw its distributable income per Vukile, a shopping centre owner in South
share increase by 6% in the half-year to Africa and Spain, excelled with distribution
February 2024 compared to the half-year growth of 10,5% in the year ended March
ended February 2023. However, its dividend 2024, up from 6,2% the previous year.
was the same level as the REIT reduced its Its retail vacancy rate in South Africa was
payout ratio to 80% from 85% given its only 1,9%, while rental reversions were
elevated LTV ratio of just about 40% (see positive again (+2,9%). However, its LTV
chart). ratio has remained high at 42,6% (see
chart). Vukile generates about 18% of its
Burstone (formerly Investec Property Fund) SA portfolio’s power. Looking ahead, Vukile
has an even higher LTV of 44% but said it is said it expects its distribution growth to
expected to decline due to asset disposals. slow to between 4% and 6% in the year
It saw its distribution per income increase by ending March 2025.
1% in the year ended March 2024 but it
reduced its distribution by 10%. Its payout Stor-Age kept it distribution in the year
ratio declined to 85% from 95% and the fund ended March 2024 the same a year before,
stated it would use 75% in future. Burstone but it was still up about 11% from 2019
expects its distribution will decline by levels. Stor-Age described its performance
between 2% and 4% in the year ending in South Africa as “exceptionally strong”,
March 2025. with its vacancy rate down to 7,9% and
nominal rental growth reaching 9,5%.
Burstone’s local office portfolio saw The same cannot be said for its UK
vacancies increase slightly to 8,4%, but this operations, where its vacancy rate rose
is well below the sector average. However, to 16,5% and rental growth averaged 4,7%.
on lease reversion, rentals for offices fell by The company also boasts a conservative
a hefty 29% as several long-dated leases of LTV ratio of 31,4%, albeit up slightly, giving
over 5 years expired. it one of the healthiest balance sheets
in the listed property sector. Stor-Age is still
Burstone’s retail portfolio saw one of the few REITs that have maintained
improvement, with the vacancy rate down a 100% dividend payout ratio but warned
to 3,7% from 4,5% and the reversion rate that it is considering lowering it to 90% –
turning to a positive 3,8%. 95%.
Rode’s Report 2024:2 29 Listed property

In sum The formation of the new Government of

National Unity (GNU) was generally well
The financial results of listed property received by investors as evidenced by the
companies were a mixed bag. Encouragingly, strong run in SA stocks in June. Independently
some operating metrics improved, like rental from the formation of the GNU, it looks more
reversion rates for retail and industrial certain now that the first local interest rate
property. The same cannot be said about cut could well occur before the end of 2024,
office property, where large rental reversion
with more easing to follow in 2025. Indeed,
rates are still experienced.
some economists have upgraded their view
Dividends growth remains scarce as REITs of economic growth for 2025. This better
have held back cash for operations or outlook has already boosted listed property
expansions, while keeping debt levels under prices and could lead to further gains if the
control in the high-interest-rate environment. outlook materialises. 

Table 4.2
Change in distributions for half- and full-year periods ended February 2024
Distribution change Distribution change
Company Period
2023 2024
Delta -* -* Full year
Dipula B -38,8% -4,9% Half-year
Equites 4,1% -22,7% Full year
Exemplar 20,0% -1,5% Full year
Octodec 20,0% 0,0% Half-year
Redefine -14,3% -0,1% Half-year
Spear 11,3% 3,8% Full year
Change in distributions for half- and full-year periods ended March 2024
Accelerate -* -* Full year
Burstone -2,8% -10,0% Full year
Safari 14,0% -6,2% Full year
Stor-Age 5,6% 0,0% Full year
Vukile 6,2% 10,5% Full year
* No distribution for both periods.
Source: Financial results of the various listed property funds
Rode’s Report 2024:2 30 Office rentals

Chapter 5: Office rentals

Office markets in Durban

and Cape Town shine
Kobus Lamprecht

The modest office market recovery in South there is enormous upside potential in the
Africa continued in the second quarter of medium term from the current shattered
2024 as illustrated by the lower vacancy rates levels.
reported in Chapter 6 and the slowly growing
nominal rentals below. The market has been Listed property companies are still
boosted by the return of some workers to generally reporting negative office rental
offices since 2022, albeit in many instances reversion rates as contractual rentals have
in a hybrid way. However, the sector remains escalated by much more than market
in the worst position of the three major rentals, as shown on the chart. Redefine,
non-residential property types due to its Dipula and Burstone all saw a sharp decline
significant oversupply. in rental reversion rates, all worse than
the previous period. Octodec was the only
Rentals in real terms continue to look REIT that saw a positive rental reversion
bleak but the other side of the coin is that rate.

#On renewals.
*The data is based on either the six months or year ended February/March
Source: Financial results of the various listed property funds
Rode’s Report 2024:2 31 Office rentals

Source: Rode’s Time Series

In the second quarter of 2024, weighted subsidised tenant installation (TI)

gross market rentals for decentralized 1 expenses, which do change in tandem
grade-A space increased nationally by 2% in with the rental cycle.
nominal terms compared to the second
quarter of 2023. This is somewhat better than The practical implication is that with the
the 1% growth recorded in the first quarter current granting of incentives, our nominal
of 2024. All in all, rentals have improved market rentals reported below are on the
from the big Covid declines, but are still optimistic side because they exclude these
about 1% below 2019 levels (that is, before leasing incentives.
the pandemic), as shown on the chart.
Rentals in the major decentralized
In real terms, second-quarter decentralized nodes
rentals fell sharply, after deducting building-
cost inflation (BER BCI) of around 9%. Below Rode’s data shows that the coastal cities
we provide an update on recent South African of Durban and Cape Town have performed
rental data. Note that all changes in rentals better than the Gauteng cities. Durban is
are calculated using a two-quarter weighted the surprise story of the quarter, with
moving average (that is, we smoothed the decentralized nominal rentals (+6,2%) in
data slightly). the city growing the fastest of the four major
cities. Here Umhlanga/La Lucia has stood
National rentals out, as we have highlighted in previous Rode
Report versions, but it also appears that other
Before we deal with market rentals, a word nodes (like Westville) are showing green
about our survey method. The question put shoots. Time will tell if this is a sustainable
to the same panel every quarter includes the trend. That said, the city’s rental growth was
following instruction: not fast enough to outpace building-cost
inflation, which is growing by an estimated
 “Nominal” rental assumes no leasing 9%. Please note that we report on gross
incentives like a rent-free period, market rentals and not asking or escalated
short-term discounts, free parking and contractual rentals.

1
Decentralized means all nodes in a metro lumped together, excluding the (old) central business district (CBD).
Rode’s Report 2024:2 32 Office rentals

Elsewhere, Cape Town continues to perform in Rivonia, a node that is still struggling
strongly, with decentralized rental growth with high vacancies. All in all, market rentals
at about 5%, albeit cooling from previous in Johannesburg decentralized were about
quarters. Nominal decentralized grade-A 4,5% below pre-Covid levels.
gross rentals in the Mother City rose by 4,7%
in the second quarter of 2024 compared
Nominal Johannesburg decentralized
grade-A office rentals
200

with four quarters earlier. Rentals were about 160

Smoothed

10% higher than pre-Covid levels.

120

In Johannesburg (+0,8%) and Pretoria

(log scale)
R/m²
80
(+1,5%), nominal decentralized growth Parktown

remains weak. Rentals remain below pre- Rosebank

Rivonia

Covid levels. This implies that rentals fell in Sandton C BD

40
real terms in all the major cities. 00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series

Below we delve deeper into the trends by Real Johannesburg decentralized

city. 400
grade-A office rentals
Smoothed Parktown
350
Rosebank
Nominal decentralized grade-A office rentals 300 Rivonia
Sandton C BD
160 250
Smoothed
140
200
(log scale)

120
R/m²

150
100
(log scale)
R/m²

80
100

60 Pretoria
Johannesburg 00 02 04 06 08 10 12 14 16 18 20 22 24
Durban
Source of data: Rode's Time Series
C ape Town
40
00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series In real terms, the city’s decentralized
rentals are trending down, after deducting
In Johannesburg, decentralized grade-A building-construction cost inflation. Note
nominal market rentals in the second quarter that when we use building-construction costs
of 2024 increased by 0,8% compared to a year as a deflator, we look at the movement
earlier − in line with the growth in the first of rentals over time from a developer’s
quarter of 2024. Johannesburg decentralized point of view. The higher the rise in
is still under pressure given its elevated building cost, holding constant the change
vacancy rate (around 13%). That said, vacancy in nominal market rents and operating
rates continue to improve, which could costs, the lower the viability of new
eventually support rental growth, if this trend developments.
is sustained (see Chapter 6 for vacancy rate
trends). Taking a historical view, Sandton
Nominal Johannesburg decentralized
grade-A office rentals
200
and Rosebank have stood out since roughly 160
Smoothed

2008, gaining ground on nodes such as

Parktown, Rivonia and Randburg (see 120

chart).
(log scale)
R/m²

80

Nominal market rentals in Sandton moved Randburg Ferndale

sideways (+0,3%) compared to the second

Bryanston
Illovo
40 Sandton C BD
quarter of 2023, while rentals in Rosebank 00 02 04 06 08 10 12 14 16 18 20 22 24
surprisingly fell. Nominal rentals also declined Source of data: Rode's Time Series
Rode’s Report 2024:2 33 Office rentals

Declining real rentals indicate that new Gross market rentals in the second quarter
developments are becoming less viable, fell by 5,8% in Hatfield, in line with the sharp
holding all other factors constant. Reflecting increase in its vacancy rate (see Chapter 6).
this reality, new developments have declined Rentals performed better in Centurion and
sharply on a national level over the past few Menlyn, growing by 6% and 7% respectively.
years (see Chapter 11 for more information Both these nodes have seen better vacancy
on building activity and movements in rates of late.
building-construction cost).
Real Pretoria decentralized
grade-A office rentals
280
Real Johannesburg decentralized
Smoothed
grade-A office rentals 240
400
350
Smoothed
300 200

250
160

(log scale)
200

R/m²
(log scale)

150
R/m²

120
C enturion
100 Brooklyn/Waterkloof
Randburg Ferndale Hatfield
Bryanston Menlyn
Illovo 80
Sandton C BD 00 02 04 06 08 10 12 14 16 18 20 22 24

50 Source of data: Rode's Time Series

00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series

Durban decentralized grade-A rentals in

Note that the above graphs have a log scale the second quarter of 2024 increased by
on the y-axis (vertical axis). The advantage of 6,2% on a year earlier. This was up from
a log scale is that when the lines run parallel, the 3,5% growth in the first quarter. This
one can safely infer that the lines move implies that real rentals in decentralized
at about the same rate. Where there is a Durban remain in negative territory, albeit
large difference in the level of two lines and less so than before.
the y-scale is arithmetic, it is dangerous to
evaluate which line is growing fastest. The flagship node by far in Durban is La Lucia
Ridge/Umhlanga, located in the north of
Nominal Pretoria decentralized the city, where grade-A nominal rentals rose
grade-A office rentals
200
Smoothed
by 5%, boosted by lower vacancies (see
160
Chapter 6).
120

Rentals in Westville surprised on the

(log scale)

upside, with double-digit rental growth

R/m²

80

C enturion
Brooklyn/Waterkloof
(+12,8%) compared to the second quarter
Hatfield
Menlyn
of 2023. But we will have to wait a few more
40 quarters to see if this is sustainable.
00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series

Nominal Durban decentralized
grade-A office rentals
180
Smoothed
160

In Pretoria, decentralized, nominal grade-A 140

rentals increased by 1,5% on a year earlier in 120

the second quarter of 2024, after declining at 100

(log scale)

the start of 2024. The second-quarter rental

R/m²

80

was still about 3% below pre-Covid levels as 60

vacancies remain elevated. In fact, vacancies

Berea
La Lucia Ridge
Westville

were above the national average in the 40

00 02 04 06 08 10 12 14 16 18 20 22 24
second quarter. Source of data: Rode's Time Series
Rode’s Report 2024:2 34 Office rentals

As for nodal trends, nominal rental growth

Real Durban decentralized
grade-A office rentals
280

240
Smoothed
slowed in Claremont and Tyger Valley to 3,5%
200
and 1,4% respectively. Century City bucked
the trend, with rental growth picking up to
160
7,7%.
(log scale)
R/m²

120

Berea
Cape Town’s office demand has likely
La Lucia Ridge
Westville
been boosted by the city’s perceived better
80 governance and lifestyle, and more reliable
00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series power (and water) supply. Its second-quarter
rental level was a respectable 10% higher
In the second quarter of 2024, nominal Cape than pre-Covid levels.
Town decentralized office rentals increased Real Cape Town decentralized

by 4,7% year on year − the second-best

grade-A office rentals
350
Smoothed

performance of the major cities. This is line 300

with its lower vacancy rate. That said, rental 250

growth has cooled from the 2023 average 200

of 10%. (log scale)

R/m²

150

Nominal Cape Town decentralized

Tyger Valley
grade-A office rentals C laremont
200
Smoothed C entury C ity
100
160
00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series

120

The chart above shows how rentals

(log scale)
R/m²

80
have performed after deducting building-
construction inflation. We see that Cape
Town’s real rentals also plunged during the
Tyger Valley
C laremont
C entury C ity
40 Covid pandemic but have performed better
00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series

than the rest of the country since 2022.

Recap: nominal versus real rentals

The term “nominal” refers to money rentals, while the term “real” refers to nominal less
inflation. See also the Glossary.

Rode mostly deflates nominal rentals using the Bureau for Economic Research’s Building Cost
Index (BER BCI) to arrive at real rentals. The rationale for using building costs as deflator is the
substitution principle and because building costs can serve as a proxy for replacement costs. To
illustrate, why would you buy a property for R110 when you could have it built (replaced) for
R100? When rentals are low relative to replacement costs, the upside potential for rentals is
great and vice versa. Thus, high real rentals (relative to previous periods) may be an indication
of a market that is vulnerable to a downswing, and low real rentals indicate great upside
potential.
Rode’s Report 2024:2 35 Office rentals

How to interpret a log vertical scale (y-axis) on a graph

Most of the graphs in Rode’s Report show the natural logs of the data on the y-axis. When two lines on
a vertical log scale run parallel, it means the two (rental) series are growing or declining at the same rate.
A log scale is especially important to judge relative growth rates when the lines are far apart. (The
horizontal axis is called the x-axis.)

Our sincere thanks to our expert panellists for the information they supplied. Codes of the brokers
and landlords who contributed to this quarter's survey appear in the table on p. 36. An explanation of the
codes can be found on p. vii.

Table 5.1
Pioneer office rentals
Highest nominal market gross rental rate achieved
Quarter 2024:2
Rands per rentable m², gross leases (excl. VAT)
Normal Inferred
Pioneer
grade A mean growth potential
Johannesburg dec. R280 R143 96%
Pretoria dec. - - -
Durban dec. R225 R154 46%
Cape Town dec. R300 R164 83%

Pioneer rentals developers naturally expect a fair initial yield

on their development costs. Normally, the
Table 5.1 shows the difference between lease is signed before construction starts.
pioneer rentals and grade-A market rentals in Thus, when the economy eventually climbs
the second quarter of 2024. This the reader out of its current lethargy, market rentals will
can use as a rough indicator of prospects for shoot up to levels closer to these pioneer
eventual market-rental growth should the rentals.
deus ex machina come down from the skies
and generate sustainable growth in the SA This concludes our section on office rentals.
economy. The office rental tables follow.

Pioneer rental levels typically represent Please note that the data could be erratic
leases signed on newly erected on-demand in some nodes due to small sample sizes.
buildings like leaseback developments, and Therefore, readers are advised to use an
these rentals inevitably reflect current or average of at least the last two quarters to
recent building and land acquisition costs as obtain the latest rate. 
 Rode’s Report 2024:2 36 Office rentals

Table 5.2
Market rental rates for office buildings
Quarter 2024:2
Rands per rentable m² per month, gross leases (excl. VAT)
Grade A+ Grade A Grade B Grade C
Panellist codes
Mean mean mean mean
Johannesburg CBD - 108,15 96,65 55,60 AV,BR,LIB,PVS
Braamfontein - 101,97 92,65 79,80 AV,BR,LIB,PVS
Sandton CBD 224,58 167,51 126,73 90,06 AV,BR,CPS,CR,GB,LIB,MR,PVS,SHP,
WP
Dunkeld West 173,95 134,90 110,83 91,83 AV,BR,CPS,LIB,MR,PVS,SHP,WP
Wierda Valley 155,08 133,18 110,70 90,17 AV,BR,CPS,GB,LIB,PVS,SHP
Randburg Ferndale 96,85 89,02 72,13 59,83 BR,CPS,LIB,NH,PRS,PVS
Rivonia 121,15 109,06 92,42 76,92 AV,BR,CPS,GB,LIB,PVS,SHP,SS
Rosebank 232,19 171,49 124,15 102,07 AV,BR,CPS,CR,GB,LIB,MR,PVS,SHP,
WP
Illovo 205,62 148,36 123,40 101,43 AV,BR,CPS,GB,LIB,MR,PVS,SHP
Illovo Boulevard 186,78 144,02 115,96 98,00 AV,BR,CPS,GB,LIB,MR,PVS,SHP,WP
Chislehurston 157,20 134,62 121,83 102,63 AV,BR,CPS,GB,LIB,PVS
Parktown 151,30 127,68 106,50 80,15 AV,BR,CPS,LIB,PVS,SS
Richmond/Milpark - 106,87 86,35 72,75 AV,BR,LIB,PVS
Bedfordview 149,98 128,62 110,28 89,18 BR,GB,LIB,MR,PVS,SS
Bruma - 106,53 84,40 71,53 BR,GB,LIB,MR,PVS,SS
Woodmead 144,56 126,28 103,03 82,41 AV,BR,CPS,CR,GB,LIB,PVS,SHP,SS,
WP
Sunninghill 115,97 102,40 92,88 79,52 AV,BR,GB,LIB,PVS,SHP,SS
Bryanston/Epsom Downs 184,18 143,53 109,50 93,02 AV,BR,CPS,CR,GB,LIB,PVS,SHP,TCP,
WP
Fourways 179,96 147,50 109,20 95,97 BR,CPS,CR,GB,LIB,PVS,SHP
Houghton 173,73 132,33 101,40 85,15 AV,BR,GB,LIB,PVS,WP
Melrose Arch 224,82 200,20 130,10 102,95 AV,BR,CPS,CR,GB,LIB,MR,PVS
Hyde Park 157,93 138,03 114,88 100,98 AV,BR,CPS,GB,MR,LIB,PVS,TCP,WP
Eastgate/Kramerville 172,05 159,30 109,57 89,25 MR,PVS,SS
Ormonde - - 79,05 70,10 BR,LIB,PVS
Midrand 171,66 124,00 95,97 72,54 BR,CR,LIB,MR,PVS,SHP,SS,TCP,WP
Hendrik Potgieter - 110,00 90,00 - BR,LIB,PVS
Corridor (incl. Ruimsig)
Waterfall 211,07 180,00 145,00 - AV,BR,CPS,CR,MR,PVS,SHP,SS,WP
Waverley/Bramley 160,70 132,70 110,20 - AV,BR,CPS,LIB,PVS
Constantia Kloof - 140,70 122,90 101,90 PVS
Morningside - 141,05 117,40 92,30 AV,CPS,GB,PVS,SS
Greenstone 139,15 131,57 111,85 86,05 GB,MR,PVS,SHP,SS
East Rand
Germiston - - 75,00 - MR,SS
Benoni CBD - 120,00 77,50 61,67 CPS,MR,SS
Benoni dec. - - - - MR,
Benoni (Lakeside Mall - 150,00 120,00 100,00 MR,SS
area)
For definitions, see Glossary of terms and abbreviations in Annexure 1.
 Rode’s Report 2024:2 37 Office rentals

Table 5.2 (continued)

Market rental rates for office buildings
Quarter 2024:2
Rands per rentable m² per month, gross leases (excl. VAT)
Grade A+ Grade A Grade B Grade C
Panellist codes
mean Mean mean mean
Boksburg CBD - - 55,00 47,50 CPS,MR,SS
Boksburg North - 120,00 82,50 65,00 CPS,MR,SS
Springs - - - -
Pretoria CBD - - 75,00 62,50 AP,CRI
Lynnwood Glen - - 110,00 95,00 AP
Lynnwood 177,50 160,00 125,00 102,50 ABA,AP,CRI,HN
Lynnwood Manor 207,50 160,00 120,00 100,00 AP,CRI
Lynnwood Ridge - 150,00 97,50 - AP,CRI,HN
Faerie Glen - 140,00 121,67 110,00 ABA,AP,CRI
Val de Grace - - 120,00 - AP,CRI
Menlyn 200,00 177,50 127,50 110,00 ABA,AP,CRI
Menlo Park/Hazelwood - 157,50 - - AP,CRI
Brooklyn/Waterkloof 175,00 160,00 140,00 120,00 AP,CRI
Nieuw Muckleneuk 180,00 150,00 130,00 - AP,CRI,
Hatfield/Hillcrest 170,00 130,00 120,83 - ABA,AP,CRI,HN
Centurion 181,50 152,50 138,33 92,50 ABA,AP,CRI
Highveld Technopark - 130,00 105,00 95,00 ABA,AP,CRI
Highveld Extensions 205,00 160,00 123,00 85,00 AP,CRI
Sunnyside - - 75,00 57,50 AP,CRI
Arcadia - - 87,50 70,00 AP,CRI
Route 21 Corp. Park - 142,50 125,00 102,50 ABA,AP,CRI,MAS
Silver Lakes/Die Wilgers 140,00 130,00 110,00 100,00 AP,CRI,HN
Mbombela CBD - - 116,50 88,75 KEL,MPV,ORI,PG
Mbombela dec. 180,63 170,00 143,75 110,00 KEL,MPV,ORI,PG
Polokwane - 150,00 111,25 83,75 ES,MO,SF,TG
Bloemfontein CBD - 110,00 88,33 66,67 BR,EK,EQV
Westdene 158,75 137,50 99,60 80,50 BR,EK,EQV,NR,PLA
Durban CBD - 110,00 100,83 70,00 BR,SPS,ZZ
Durban Berea 130,00 115,00 97,50 82,50 BR,SPS,ZZ
Essex Terrace 140,00 132,50 107,50 - BR,SPS,ZZ
Westway 165,00 154,38 135,00 - ACU,BR,SA,SPS,ZZ
La Lucia Ridge 190,00 165,00 136,67 115,00 BR,CAM,GI,SPS,ZZ
Westville CBD 165,00 148,75 125,00 105,00 ACU,BR,GI,SPS,ZZ
Pinetown 120,00 100,00 90,00 75,00 SPS,ZZ
Hillcrest-Kloof (Upper 146,67 130,00 113,33 100,00 FUN,SPS,ZZ
Highway)
Umhlanga 202,50 175,00 157,00 - BR,CAM,GI,SPS,ZZ
Ballito 182,50 150,00 117,50 100,00 SPS,ZZ
Point Waterfront 140,00 117,50 97,50 87,50 SPS,ZZ
For definitions, see Glossary of terms and abbreviations in Annexure 1.
 Rode’s Report 2024:2 38 Office rentals

Table 5.2 (continued)

Market rental rates for office buildings
Quarter 2024:2
Rands per rentable m² per month, gross leases (excl. VAT)
Grade A+ Grade A Grade B Grade C
Panellist codes
mean mean mean Mean
Gqeberha CBD - 85,00 57,50 50,00 BR,SUM,TR
Greenacres: Parks 120,00 110,00 95,00 82,00 BR,BV,SUM
Greenacres: Single 130,00 102,50 - 83,33 BR,BV,SUM,TR
Walmer Park 122,50 115,00 100,00 88,33 BR,BV,MY,SUM
Walmer, Main Road 175,00 140,00 113,33 95,00 BR,BV,SUM
South End - 100,00 70,00 60,00 BR,SUM
Humerail/Humewood 161,67 136,67 115,00 95,00 BR,BV,SUM
Newton Park/Cape Road 131,67 115,00 96,25 81,00 BR,BV,MY,SUM,TR
East London CBD - - - 75,63 CAP,GW,TR
Southernwood - 85,00 80,00 75,00 CAP
Berea - - - 97,50 CAP,TR
Chiselhurst - - 90,00 85,00 CAP
Beacon Bay - 128,00 125,00 117,50 CAP,TR
Vincent - 125,00 115,00 110,00 CAP,TR
Cape Town CBD 186,25 153,75 115,00 96,67 AN,AP,DN,RIO,SPI,VP,WPM
Sea Point 155,00 140,00 122,50 100,00 AN,AP,VP,WPM
Waterfront: Portswood 165,00 140,00 - - AN,AP,SPI
Ridge
Waterfront: Silo District 197,50 167,50 - - AN,AP,SPI
Granger Bay 160,00 130,00 - - AN,AP,SPI,VP
Gardens 182,50 163,33 142,50 110,00 AN,AP,DN,SPI,VP,WPM
Salt River 135,00 120,00 105,00 95,00 AP,DN,SPI,VP
Woodstock 141,25 133,00 105,00 96,67 AP,DN,SPI,VP,WPM
Observatory/Black River - 145,00 123,33 100,00 AP,COR,DN,SPI
Park
Mowbray - 158,33 142,50 115,00 AP,COR,SPI
Kenilworth (Racecourse) - 130,00 120,00 100,00 AP,COR,SPI
Rondebosch 155,00 145,00 128,33 115,00 AP,COR,SCM,SPI,WPM
Newlands 220,00 188,75 146,67 133,33 AP,COR,SCM,SPI
Wynberg - 121,67 105,00 83,33 AP,COR,SCM,SPI
Westlake 165,00 151,25 128,33 115,00 AN,COR,SAF,SPI
Tokai 147,50 - - - AN,COR,SAF
Claremont Lower* - 190,00 150,00 110,00 AP,COR,SCM,SPI
Claremont Upper 228,33 183,33 143,33 120,00 AP,COR,SCM
Hout Bay - - - -
Noordhoek (Sun Valley) - - - -
Pinelands/Golf Park 173,33 161,25 140,00 120,00 AP,COR,SPI,VP
Athlone - - - -
Milnerton 110,00 103,75 92,50 85,00 AP,RIO,SAF,SCM,VP,WPM
Panorama 223,50 200,00 - - AP,VP
Table View/Parklands - 140,00 120,00 100,00 RIO,SCM,VP
*Claremont Lower: east of Main Road
For definitions, see Glossary of terms and abbreviations in Annexure 1.
 Rode’s Report 2024:2 39 Office rentals

Table 5.2 (continued)

Market rental rates for office buildings
Quarter 2024:2
Rands per rentable m² per month, gross leases (excl. VAT)
Grade A+ Grade A Grade B Grade C
Panellist codes
Mean mean Mean Mean
Century City 208,00 174,38 145,31 - AN,AP,CPC,DN,RIO,SAF,SPI,VP,
WPM
Maitland 140,00 120,00 105,00 90,00 AP
Goodwood (N1 City) 150,00 126,67 102,67 90,00 AP,SCM,VP,WPM
Tygerberg Hills/Plattekloof 181,25 167,50 - - AP,CM,SCM,SPI,VP
Bellville CBD - 110,00 97,50 90,00 AP,CM,DN,SCM,VP
Tyger Valley area 195,83 164,00 139,00 116,00 AP,CM,DN,NE,PN,SCM,SPI,VP,
WPM
Durbanville 150,00 125,00 108,33 100,00 CM,DN,WPM
Mitchells Plain - - - -
Airport - - - -
Khayelitsha - - - -
Kuils River - - 72,50 - AP,DN
Paarl - - - -
Wellington - - - -
Stellenbosch
The Vineyard - - - -
Technopark - - - -
Other - - - -
Helderberg
Gordon’s Bay - - - -
Somerset West CBD - - - -
Somerset Mall area - - - -
Strand - - - -
George Central - - - -
George dec. - - - -
Pietermaritzburg Core CBD - - 85,00 65,00 HN
Peripheral CBD - - 120,00 80,00 HN
Pietermaritzburg dec. 160,00 145,00 125,00 90,00 HN
Richards Bay - - - -
Empangeni - - - -
Windhoek 200,00 175,00 145,00 125,00 PVN
For definitions, see Glossary of terms and abbreviations in Annexure 1.
 Rode’s Report 2024:2 40 Office rentals

Table 5.3
Standard deviation of market rental rates for office buildings
Quarter 2024:2
Rands per month
Grade A+ Grade A Grade B Grade C
Johannesburg CBD - 1,85 0,85 5,60
Braamfontein - 2,18 2,35 -
Sandton CBD 15,72 12,21 16,71 3,26
Dunkeld West 10,36 14,62 7,09 6,94
Wierda Valley 22,36 10,52 11,04 1,84
Randburg Ferndale 12,42 10,68 5,10 4,59
Rivonia 6,85 7,50 5,31 3,54
Rosebank 20,34 9,31 15,40 11,02
Illovo 13,61 22,56 17,01 16,12
Illovo Boulevard 15,01 10,17 14,97 -
Chislehurston 25,04 17,01 8,11 6,13
Parktown 22,13 17,85 12,29 15,15
Richmond/Milpark - 13,52 6,35 5,25
Bedfordview 24,50 14,26 8,72 13,04
Bruma - 6,67 6,22 8,37
Woodmead 12,95 13,13 14,98 18,70
Sunninghill 5,31 6,30 10,29 7,71
Bryanston/Epsom Downs 15,25 20,84 11,37 3,99
Fourways 16,73 7,07 14,95 1,37
Houghton 23,86 11,15 5,88 5,15
Melrose Arch 13,53 23,42 5,10 2,95
Hyde Park 6,15 15,86 16,50 8,98
Eastgate/Kramerville 2,95 0,70 7,64 4,25
Ormonde - - 1,55 0,00
Midrand 8,24 14,71 13,66 9,75
Hendrik Potgieter Corridor - - - -
(incl. Ruimsig)
Waterfall 19,72 8,94 11,18 -
Waverley/Bramley 14,92 9,57 7,70 -
Constantia Kloof - - - -
Morningside - 8,95 3,68 5,59
Greenstone 9,15 2,22 1,85 3,95
East Rand
Germiston - - 20,00 -
Benoni CBD - - 27,50 23,92
Benoni dec. - - - -
Benoni (Lakeside Mall area) - - - -
Boksburg CBD - - - 7,50
Boksburg North - - 22,50 22,73
Springs - - - -
For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2024:2 41 Office rentals

Table 5.3 (continued)

Standard deviation of market rental rates for office buildings
Quarter 2024:2
Rands per month
Grade A+ Grade A Grade B Grade C
Pretoria CBD - - - 2,50
Lynnwood Glen - - - -
Lynnwood 2,50 0,00 25,50 23,58
Lynnwood Manor 12,50 20,00 - -
Lynnwood Ridge - 0,00 22,50 -
Faerie Glen - 8,16 6,24 0,00
Val de Grace - - - -
Menlyn 0,00 2,50 2,50 -
Menlo Park/Hazelwood - 22,50 - -
Brooklyn/Waterkloof 5,00 0,00 10,00 -
Nieuw Muckleneuk - 10,00 - -
Hatfield/Hillcrest - 5,00 29,60 -
Centurion 6,50 22,50 16,50 17,50
Highveld Technopark - 20,00 5,00 0,00
Highveld Extensions 5,00 - 23,00 -
Sunnyside - - - 7,50
Arcadia - - 7,50 5,00
Route 21 Corp. Park - 16,77 15,00 7,50
Silver Lakes/Die Wilgers - 7,07 4,08 -
Mbombela CBD - - 0,87 2,17
Mbombela dec. 11,91 8,66 10,83 0,00
Polokwane - 14,58 14,31 10,83
Bloemfontein CBD - 10,00 14,34 2,36
Westdene 10,23 12,99 17,74 9,39
Durban CBD - - 11,96 10,00
Durban Berea 30,00 30,00 22,50 22,50
Essex Terrace - 12,50 7,50 -
Westway - 6,70 - -
La Lucia Ridge 12,75 7,07 12,47 15,00
Westville CBD - 7,40 7,07 -
Pinetown - 0,00 - 5,00
Hillcrest-Kloof (Upper Highway) 14,34 14,14 16,50 10,00
Umhlanga 14,83 12,25 16,57 -
Ballito 2,50 10,00 2,50 -
Point Waterfront - 2,50 2,50 2,50
Gqeberha CBD - - 7,50 4,08
Greenacres: Parks - 10,00 14,72 17,00
Greenacres: Single 30,00 17,50 - 18,86
Walmer Park 12,50 10,80 10,80 8,50
Walmer, Main Road 5,00 18,71 12,47 17,80
South End - - - -
Humerail/Humewood 16,50 17,00 14,72 5,00
Newton Park/Cape Road 27,18 7,91 9,60 10,98
For definitions, see Glossary of terms and abbreviations in Annexure 1
Rode’s Report 2024:2 42 Office rentals

Table 5.3 (continued)

Standard deviation of market rental rates for office buildings
Quarter 2024:2
Rands per month
Grade A+ Grade A Grade B Grade C
East London CBD - - - 11,41
Southernwood - - - -
Berea - - - 2,50
Chiselhurst - - - -
Beacon Bay - - - 2,50
Vincent - - - -
Cape Town CBD 42,63 43,50 26,93 4,71
Sea Point 5,00 10,00 2,50 0,00
Waterfront: Portswood Ridge - - - -
Waterfront: Silo District 27,50 17,50 - -
Granger Bay 10,00 - - -
Gardens 2,50 2,36 2,50 10,00
Salt River 5,00 0,00 5,00 5,00
Woodstock 19,49 23,79 16,58 4,71
Observatory/Black River Park - 35,59 33,00 -
Mowbray - 20,14 22,50 25,00
Kenilworth (Racecourse) - 0,00 - -
Rondebosch 15,00 20,62 23,92 21,21
Newlands 26,77 41,29 33,99 33,00
Wynberg - 30,64 19,69 17,00
Westlake 33,42 19,49 14,34 5,00
Tokai 37,50 - - -
Claremont Lower* - 30,00 21,60 10,00
Claremont Upper 30,64 33,00 33,00 24,49
Hout Bay - - - -
Noordhoek (Sun Valley) - - - -
Pinelands/Golf Park 9,43 6,50 0,00 16,33
Athlone - - - -
Milnerton 0,00 17,09 5,59 7,07
Panorama 1,50 0,00 - -
Table View/Parklands - 0,00 - -
Century City 17,49 25,05 22,65 -
Maitland - - - -
Goodwood (N1 City) 10,00 14,34 2,05 0,00
Tygerberg Hills/Plattekloof 6,25 5,59 - -
Bellville CBD - - 34,91 5,00
Tyger Valley area 15,39 3,74 4,90 8,00
Durbanville - 28,58 26,56 -
Mitchells Plain - - - -
Airport - - - -
*Claremont Lower: east of Main Road
For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2024:2 43 Office rentals

Table 5.3 (continued)

Standard deviation of market rental rates for office buildings
Quarter 2024:2
Rands per month
Grade A+ Grade A Grade B Grade C
Khayelitsha - - - -
Kuils River - - 22,50 -
Paarl - - - -
Wellington - - - -
Stellenbosch
The Vineyard - - - -
Technopark - - - -
Other - - - -
Helderberg
Gordon's Bay - - - -
Somerset West CBD - - - -
Somerset Mall area - - - -
Strand - - - -
George Central - - - -
George dec. - - - -
Pietermaritzburg Core CBD - - - -
Peripheral CBD - - - -
Pietermaritzburg dec. - - - -
Richards Bay - - - -
Empangeni - - - -
Windhoek - - - -
For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2024:2 44 Office rentals

Table 5.4
Typical rent-free period in months
Average periods on offer in quarter 2024:2
Mean SD
Johannesburg CBD 1,0 -
Braamfontein 1,0 0,0
Sandton CBD 3,0 2,8
Dunkeld West 1,8 0,7
Wierda Valley 3,6 2,8
Randburg Ferndale 2,7 0,9
Rivonia 1,8 0,8
Rosebank 1,8 0,7
Illovo 1,8 0,6
Illovo Boulevard 1,7 0,6
Chislehurston 1,9 0,9
Parktown 1,0 -
Richmond/Milpark 1,0 -
Bedfordview 1,3 0,4
Bruma 1,0 0,0
Woodmead 2,2 1,8
Sunninghill 2,0 0,8
Bryanston/Epsom Downs 2,1 0,9
Fourways 1,8 0,4
Houghton 2,0 0,8
Melrose Arch 1,2 0,4
Hyde Park 1,4 0,5
Eastgate/Kramerville 1,0 0,0
Ormonde - -
Midrand 2,0 1,7
Hendrik Potgieter Corridor (incl. Ruimsig) - -
Waterfall 1,5 0,8
Waverley/Bramley 1,3 0,5
Constantia Kloof - -
Morningside 1,0 -
Greenstone 1,0 0,0
East Rand
Germiston 2,0 1,0
Benoni CBD 5,3 4,8
Benoni dec. - -
Benoni (Lakeside Mall area) 3,0 -
Boksburg CBD 6,5 5,5
Boksburg North 5,3 4,8
Springs - -
Pretoria CBD 4,0 -
Lynnwood Glen 1,0 -
Lynnwood 2,0 0,8
Lynnwood Manor 2,0 -
Rode’s Report 2024:2 45 Office rentals

Table 5.4 (continued)

Typical rent-free period in months
Average periods on offer in quarter 2024:2
Mean SD
Lynnwood Ridge 1,0 0,0
Faerie Glen 1,0 0,0
Val de Grace - -
Menlyn 2,5 0,5
Menlo Park/Hazelwood 2,0 -
Brooklyn/Waterkloof 2,0 -
Nieuw Muckleneuk 2,0 -
Hatfield/Hillcrest 1,5 0,5
Centurion 2,3 0,3
Highveld Technopark 2,0 0,0
Highveld Extensions 1,0 -
Sunnyside 1,0 -
Arcadia 1,0 -
Route 21 Corp. Park 1,7 0,5
Silver Lakes/Die Wilgers 1,0 0,0
Mbombela CBD 1,0 0,0
Mbombela dec. 1,3 0,4
Polokwane 2,6 2,0
Bloemfontein CBD - -
Westdene 0,8 0,4
Durban CBD 1,7 0,5
Durban Berea 1,7 0,5
Essex Terrace 1,7 0,5
Westway 2,0 0,0
La Lucia Ridge 1,7 0,5
Westville CBD 1,7 0,5
Pinetown 2,0 0,0
Hillcrest-Kloof (Upper Highway) 2,0 0,0
Umhlanga 1,7 0,5
Ballito 2,0 0,0
Point Waterfront 2,0 0,0
Gqeberha CBD 1,3 0,5
Greenacres: Parks 1,0 0,0
Greenacres: Single 1,0 0,0
Walmer Park 1,7 0,9
Walmer, Main Road 1,0 0,0
South End 1,0 0,0
Humerail/Humewood 1,0 0,0
Newton Park/Cape Road 1,5 0,9
East London CBD 3,0 0,0
Southernwood 2,0 0,0
Berea 1,3 0,8
Rode’s Report 2024:2 46 Office rentals

Table 5.4 (continued)

Typical rent-free period in months
Average periods on offer in quarter 2024:2
Mean SD
Chiselhurst 3,0 0,0
Beacon Bay 1,3 0,8
Vincent 1,3 0,8
Cape Town CBD 1,6 0,6
Sea Point 1,3 0,5
Waterfront: Portswood Ridge 2,0 -
Waterfront: Silo District 2,0 0,8
Granger Bay 1,3 0,5
Gardens 0,5 0,5
Salt River 1,0 0,0
Woodstock 2,0 1,0
Observatory/Black River Park 1,7 0,9
Mowbray 1,7 0,9
Kenilworth (Racecourse) 1,7 0,9
Rondebosch 2,0 1,0
Newlands 2,0 1,0
Wynberg 0,8 0,4
Westlake 2,0 1,0
Tokai 1,0 -
Claremont Lower* 1,5 0,9
Claremont Upper 2,3 1,9
Hout Bay - -
Noordhoek (Sun Valley) - -
Pinelands/Golf Park 1,8 0,8
Athlone - -
Milnerton - -
Panorama 1,5 0,5
Table View/Parklands - -
Century City 2,0 0,8
Maitland 1,0 -
Goodwood (N1 City) 0,5 0,5
Tygerberg Hills/Plattekloof 2,0 0,8
Bellville CBD 1,0 0,0
Tyger Valley area 1,1 0,6
Durbanville 0,5 0,5
Mitchells Plain - -
Airport - -
Khayelitsha - -
Kuils River 1,0 -
Paarl - -
Wellington - -
*Claremont Lower: east of Main Road
Rode’s Report 2024:2 47 Office rentals

Table 5.4 (continued)

Typical rent-free period in months
Average periods on offer in quarter 2024:2
Mean SD
Stellenbosch
The Vineyard - -
Technopark - -
Other - -
Helderberg
Gordon's Bay - -
Somerset West CBD - -
Somerset Mall area - -
Strand - -
George Central - -
George dec. - -
Pietermaritzburg Core CBD 1,0 -
Peripheral CBD 1,0 -
Pietermaritzburg dec. 1,0 -
Richards Bay - -
Empangeni - -
Windhoek 0,0 -
Rode’s Report 2024:2 48 Office rentals

Table 5.5
Market parking rentals
Rands per bay per month (excl. VAT)
as in quarter 2024:2
Covered reserved parking Shade Open-
Gr A + Gr A Gr B Gr C net air
Johannesburg CBD - 858 795 600 - 483
Braamfontein - 900 775 615 595 493
Sandton CBD 1.137 948 841 642 606 480
Dunkeld West 850 743 623 463 498 400
Wierda Valley 819 725 648 540 474 386
Randburg Ferndale 528 420 393 325 371 284
Rivonia 640 559 519 469 439 357
Rosebank 1.139 848 641 490 577 486
Illovo 872 717 612 466 537 431
Illovo Boulevard 878 707 613 535 532 453
Chislehurston 788 757 623 595 473 373
Parktown 833 718 577 445 532 456
Richmond/Milpark 630 553 403 340 377 330
Bedfordview 757 618 522 436 495 416
Bruma - 445 367 310 404 330
Woodmead 746 655 529 471 490 417
Sunninghill 640 553 510 455 431 370
Bryanston/Epsom Downs 848 677 564 480 487 394
Fourways 758 683 540 500 531 415
Houghton 903 736 418 300 592 460
Melrose Arch 1.154 1.098 775 570 580 530
Hyde Park 797 707 554 503 530 440
Eastgate/Kramerville 875 710 585 500 530 460
Ormonde - - 670 330 415 350
Midrand 844 664 553 451 469 403
Hendrik Potgieter Corridor - 655 320 - 260 210
(incl. Ruimsig)
Waterfall 1.026 922 698 - 583 516
Waverley/Bramley 775 730 585 - 680 560
Constantia Kloof - 550 510 - 550 430
Morningside 760 680 613 540 548 420
Greenstone 643 568 517 493 446 404
East Rand
Germiston - 350 300 250 300 225
Benoni CBD - 350 300 250 250 200
Benoni dec. - 350 300 250 250 150
Benoni (Lakeside Mall area) - 400 350 300 375 325
Boksburg CBD - - 200 150 250 200
Boksburg North - 350 300 250 275 200
Springs - - - - - -
Rode’s Report 2024:2 49 Office rentals

Table 5.5 (continued)

Market parking rentals
Rands per bay per month (excl. VAT)
as in quarter 2024:2
Covered reserved parking Shade Open-
Gr A+ Gr A Gr B Gr C net air
Pretoria CBD - - 600 400 600 450
Lynnwood Glen - 850 650 500 450 300
Lynnwood 815 675 583 467 443 388
Lynnwood Manor 975 850 750 650 550 450
Lynnwood Ridge - 750 650 500 450 300
Faerie Glen - 717 567 435 467 317
Val de Grace - - 375 300 300 280
Menlyn 975 825 750 650 639 440
Menlo Park/Hazelwood 1.000 775 650 600 495 425
Brooklyn/Waterkloof 850 700 600 - 550 450
Nieuw Muckleneuk 750 690 625 600 575 450
Hatfield/Hillcrest 700 667 600 500 450 340
Centurion 900 723 625 475 508 393
Highveld Technopark - 550 500 500 - 375
Highveld Extensions 625 575 525 - 425 375
Sunnyside - - - 450 - -
Arcadia - - 655 - 600 -
Route 21 Corp. Park - 550 425 350 400 263
Silver Lakes/Die Wilgers - 617 350 250 383 305
Mbombela CBD - - 419 438 294 206
Mbombela dec. 538 538 495 465 325 175
Polokwane - 453 350 296 313 228
Bloemfontein CBD - 320 313 265 240 120
Westdene 435 389 323 270 268 177
Durban CBD - 650 600 500 350 300
Durban Berea 625 592 525 375 350 300
Essex Terrace 500 500 425 375 350 300
Westway 700 625 517 350 - 475
La Lucia Ridge 844 725 575 450 - 625
Westville CBD 650 630 517 400 350 494
Pinetown 450 400 375 325 250 200
Hillcrest-Kloof (Upper 567 517 483 450 375 300
Highway)
Umhlanga 853 750 650 400 - 633
Ballito 625 550 475 400 350 300
Point Waterfront - 575 500 450 400 350
Gqeberha CBD - 500 350 350 - 300
Greenacres: Parks 500 517 400 - 350 350
Greenacres: Single 500 475 425 350 350 217
Walmer Park 450 450 383 325 317 221
Walmer, Main Road 500 467 383 325 350 300
South End - - 525 425 350 -
Humerail/Humewood 567 550 475 - 383 333
Newton Park/Cape Road - 525 400 325 450 350
Rode’s Report 2024:2 50 Office rentals

Table 5.5 (continued)

Market parking rentals
Rands per bay per month (excl. VAT)
as in quarter 2024:2
Covered reserved parking Shade Open-
Gr A + Gr A Gr B Gr C net air
East London CBD - 600 550 550 600 550
Southernwood - 600 550 550 600 550
Berea 600 600 550 550 650 550
Chiselhurst - 600 550 550 600 550
Beacon Bay 600 600 550 550 600 550
Vincent 600 600 550 465 600 375
Cape Town CBD 1.810 1.590 1.390 1.138 1.100 1.050
Sea Point 1.400 1.375 1.150 1.000 900 850
Waterfront: Portswood 1.800 1.783 1.500 1.200 - -
Ridge
Waterfront: Silo District 1.800 1.783 1.500 1.200 - -
Granger Bay 2.200 2.025 1.500 1.200 - -
Gardens 1.613 1.390 1.167 1.067 1.025 850
Salt River 1.067 1.063 1.000 1.000 1.000 675
Woodstock 1.325 1.233 1.050 950 - -
Observatory/Black River - 1.150 1.100 - 1.100 683
Park
Mowbray 1.500 1.400 900 800 800 775
Kenilworth (Racecourse) - 875 850 850 850 717
Rondebosch 1.575 1.475 1.083 950 950 875
Newlands 1.850 1.633 1.475 1.250 900 850
Wynberg - 950 825 750 650 475
Westlake 1.075 - 950 850 - 817
Tokai 1.075 - 950 900 - 750
Claremont Lower* - 1.300 950 725 - 675
Claremont Upper 1.850 1.650 1.375 1.050 950 750
Hout Bay - - - - - -
Noordhoek (Sun Valley) - - - - - -
Pinelands/Golf Park - 1.200 1.000 750 1.000 750
Athlone - - - - - -
Milnerton - 600 533 500 650 450
Panorama - 700 - - - 550
Table View/Parklands - - 850 - - -
Century City 1.390 1.242 1.100 875 1.070 770
Maitland 650 650 500 500 500 500
Goodwood (N1 City) 975 918 767 750 800 550
Tygerberg Hills/Plattekloof 1.180 1.075 1.038 900 1.000 813
Bellville CBD - 875 817 750 - 325
Tyger Valley area 1.110 929 850 738 688 542
Durbanville 1.100 900 - - - -
Mitchells Plain - - - - - -
Airport - - - - - -
Khayelitsha - - - - - -
*Claremont Lower: east of Main Road
Rode’s Report 2024:2 51 Office rentals

Table 5.5 (continued)

Market parking rentals
Rands per bay per month (excl. VAT)
as in quarter 2024:2
Covered reserved parking Shade Open-
Gr A + Gr A Gr B Gr C net air
Kuils River - - - - - -
Paarl - - - - - -
Wellington - - - - - -
Stellenbosch
The Vineyard - - - - - -
Technopark - - - - - -
Other - - - - - -
Helderberg
Gordon's Bay - - - - - -
Somerset West CBD - - - - - -
Somerset Mall area - - - - - -
Strand - - - - - -
George Central - - - - - -
George dec. - - - - - -
Pietermaritzburg Core CBD - - 400 350 250 230
Peripheral CBD - - 410 365 300 260
Pietermaritzburg dec. 600 560 480 400 350 300
Richards Bay - - - - - -
Empangeni - - - - - -
Windhoek 1.450 1.200 950 750 450 300
Rode’s Report 2024:2 52 Office rentals

Table 5.6
Office rental escalation rates on new leases (%)
Average escalation rate on net rentals for quarter 2024:2
Mean
Johannesburg CBD 7,5
Braamfontein 7,8
Sandton CBD 7,5
Dunkeld West 7,3
Wierda Valley 7,3
Randburg Ferndale 7,3
Rivonia 7,6
Rosebank 7,2
Illovo 6,9
Illovo Boulevard 7,0
Chislehurston 7,6
Parktown 7,7
Richmond/Milpark 8,0
Bedfordview 8,0
Bruma 8,8
Woodmead 7,5
Sunninghill 7,5
Bryanston/Epsom Downs 7,2
Fourways 7,0
Houghton 7,8
Melrose Arch 7,5
Hyde Park 7,2
Eastgate/Kramerville 8,0
Ormonde 8,0
Midrand 7,3
Hendrik Potgieter Corridor (incl. Ruimsig) 8,0
Waterfall 7,8
Waverley/Bramley 8,0
Constantia Kloof -
Morningside 8,0
Greenstone 8,0
East Rand
Germiston 9,0
Benoni CBD 8,0
Benoni dec. -
Benoni (Lakeside Mall area) -
Boksburg CBD 8,0
Boksburg North 8,0
Springs -
Pretoria CBD 8,0
Lynnwood Glen 8,0
Lynnwood 8,3
Lynnwood Manor 8,0
Lynnwood Ridge 8,0
Faerie Glen 8,0
Val de Grace -
Rode’s Report 2024:2 53 Office rentals

Table 5.6 (continued)

Office rental escalation rates on new leases (%)
Average escalation rate on net rentals for quarter 2024:2
Mean
Menlyn 8,0
Menlo Park/Hazelwood 8,0
Brooklyn/Waterkloof 8,0
Nieuw Muckleneuk 8,0
Hatfield/Hillcrest 8,0
Centurion 7,5
Highveld Technopark 7,5
Highveld Extensions 8,0
Sunnyside -
Arcadia 8,0
Route 21 Corp. Park 7,0
Silver Lakes/Die Wilgers 7,2
Mbombela CBD 7,5
Mbombela dec. 7,4
Polokwane 6,3
Bloemfontein CBD 7,5
Westdene 7,5
Durban CBD 8,0
Durban Berea 8,0
Essex Terrace 7,5
Westway 7,5
La Lucia Ridge 7,7
Westville CBD 8,0
Pinetown 7,5
Hillcrest-Kloof (Upper Highway) 7,7
Umhlanga 7,7
Ballito 7,5
Point Waterfront 8,0
Gqeberha CBD 6,3
Greenacres: Parks 6,5
Greenacres: Single 6,8
Walmer Park 6,8
Walmer, Main Road 6,5
South End 6,5
Humerail/Humewood 6,5
Newton Park/Cape Road 6,8
East London CBD 8,0
Southernwood 8,0
Berea 8,0
Chiselhurst 8,0
Beacon Bay 8,0
Vincent 8,0
Cape Town CBD 7,7
Sea Point 7,5
Waterfront: Portswood Ridge 7,0
Waterfront: Silo District 7,5
Granger Bay 7,5
Rode’s Report 2024:2 54 Office rentals

Table 5.6 (continued)

Office rental escalation rates on new leases (%)
Average escalation rate on net rentals for quarter 2024:2
Mean
Gardens 8,0
Salt River 7,5
Woodstock 7,7
Observatory/Black River Park 7,7
Mowbray 7,3
Kenilworth (Racecourse) 7,3
Rondebosch 7,7
Newlands 7,7
Wynberg 7,5
Westlake 7,7
Tokai 7,5
Claremont Lower* 7,7
Claremont Upper 7,5
Hout Bay -
Noordhoek (Sun Valley) -
Pinelands/Golf Park 7,8
Athlone -
Milnerton 8,0
Panorama 8,0
Table View/Parklands 8,0
Century City 8,0
Maitland 8,0
Goodwood (N1 City) 8,0
Tygerberg Hills/Plattekloof 8,0
Bellville CBD 8,0
Tyger Valley area 7,6
Durbanville 8,0
Mitchells Plain -
Airport -
Khayelitsha -
Kuils River 7,0
Paarl -
Wellington -
Stellenbosch
The Vineyard -
Technopark -
Other -
Helderberg
Gordon's Bay -
Somerset West CBD -
Somerset Mall area -
Strand -
*Claremont Lower: east of Main Road
Rode’s Report 2024:2 55 Office rentals

Table 5.6 (continued)

Office rental escalation rates on new leases (%)
Average escalation rate on net rentals for quarter 2024:2
Mean
George Central -
George dec. -
Pietermaritzburg Core CBD 6,5
Peripheral CBD 7,0
Pietermaritzburg dec. 7,0
Richards Bay -
Empangeni -
Windhoek 6,0
Rode’s Report 2024:2 56 Office rentals

Table 5.7
Escalation rates on operating costs (%)
for quarter 2024:2
Mean
Johannesburg CBD 7,5
Braamfontein 7,8
Sandton CBD 7,6
Dunkeld West 7,4
Wierda Valley 7,3
Randburg Ferndale 7,9
Rivonia 7,8
Rosebank 7,4
Illovo 7,1
Illovo Boulevard 7,3
Chislehurston 7,6
Parktown 8,0
Richmond/Milpark 8,5
Bedfordview 8,2
Bruma 8,9
Woodmead 7,5
Sunninghill 7,8
Bryanston/Epsom Downs 7,4
Fourways 7,5
Houghton 8,0
Melrose Arch 7,8
Hyde Park 7,4
Eastgate/Kramerville 8,0
Ormonde 8,0
Midrand 7,3
Hendrik Potgieter Corridor (incl. Ruimsig) 8,0
Waterfall 7,8
Waverley/Bramley 8,0
Constantia Kloof -
Morningside 8,0
Greenstone 8,0
East Rand
Germiston -
Benoni CBD -
Benoni dec. -
Benoni (Lakeside Mall area) -
Boksburg CBD 8,0
Boksburg North 8,0
Springs -
Pretoria CBD 8,0
Lynnwood Glen 8,0
Lynnwood 6,0
Lynnwood Manor 8,0
Lynnwood Ridge 8,0
Faerie Glen 8,0
Val de Grace -
Rode’s Report 2024:2 57 Office rentals

Table 5.7 (continued)

Escalation rates on operating costs (%)
for quarter 2024:2
Mean
Menlyn 7,3
Menlo Park/Hazelwood 8,0
Brooklyn/Waterkloof 8,0
Nieuw Muckleneuk 8,0
Hatfield/Hillcrest 8,0
Centurion 6,5
Highveld Technopark 6,3
Highveld Extensions 8,0
Sunnyside -
Arcadia -
Route 21 Corp. Park 7,0
Silver Lakes/Die Wilgers 5,5
Mbombela CBD 8,8
Mbombela dec. 9,0
Polokwane 6,8
Bloemfontein CBD 8,0
Westdene 8,0
Durban CBD 6,5
Durban Berea 6,5
Essex Terrace 6,5
Westway 6,5
La Lucia Ridge 7,0
Westville CBD 6,5
Pinetown 6,5
Hillcrest-Kloof (Upper Highway) 6,5
Umhlanga 7,0
Ballito 6,5
Point Waterfront 6,5
Gqeberha CBD 13,0
Greenacres: Parks 13,0
Greenacres: Single 13,0
Walmer Park 13,0
Walmer, Main Road 13,0
South End 13,0
Humerail/Humewood 13,0
Newton Park/Cape Road 13,0
East London CBD 9,0
Southernwood 9,0
Berea 9,0
Chiselhurst 9,0
Beacon Bay 9,0
Vincent 9,0
Cape Town CBD 7,7
Sea Point 7,5
Waterfront: Portswood Ridge 7,0
Waterfront: Silo District 7,0
Rode’s Report 2024:2 58 Office rentals

Table 5.7 (continued)

Escalation rates on operating costs (%)
for quarter 2024:2
Mean
Granger Bay 7,5
Gardens 8,0
Gardens 8,0
Salt River 7,5
Woodstock 7,5
Observatory/Black River Park 8,0
Mowbray 7,0
Kenilworth (Racecourse) 7,0
Rondebosch 8,0
Newlands 8,0
Wynberg -
Westlake -
Tokai -
Claremont Lower* 8,0
Claremont Upper 8,0
Hout Bay -
Noordhoek (Sun Valley) -
Pinelands/Golf Park 8,0
Athlone -
Milnerton 8,0
Panorama 8,0
Table View/Parklands 8,0
Century City 8,0
Maitland 8,0
Goodwood (N1 City) 8,0
Tygerberg Hills/Plattekloof 8,0
Bellville CBD 8,0
Tyger Valley area 7,5
Durbanville 8,0
Mitchells Plain -
Airport -
Khayelitsha -
Kuils River -
Paarl -
Wellington -
Stellenbosch
The Vineyard -
Technopark -
Other -
Helderberg
Gordon's Bay -
Somerset West CBD -
Somerset Mall area -
Strand -
George Central -
George dec. -
*Claremont Lower: east of Main Road
Rode’s Report 2024:2 59 Office rentals

Table 5.7 (continued)

Escalation rates on operating costs (%)
for quarter 2024:2
Mean
Pietermaritzburg Core CBD 7,0
Peripheral CBD 7,0
Pietermaritzburg dec. 7,0
Richards Bay -
Empangeni -
Windhoek 6,0
Rode’s Report 2024:2 60 Office rentals

Table 5.8
Typical gross outgoings for prime office buildings
As reported by brokers
R/rentable m² per month: quarter 2024:2
Mean SD n
Johannesburg CBD - - -
Braamfontein 10,50 0,50 2
Sandton CBD 47,50 17,90 6
Dunkeld West 41,00 17,28 3
Wierda Valley 36,80 16,36 5
Randburg Ferndale 25,20 2,30 2
Rivonia 30,25 8,53 4
Rosebank 48,00 19,10 3
Illovo 40,00 12,66 5
Illovo Boulevard 35,00 - 1
Chislehurston 44,50 18,66 4
Parktown 25,00 0,00 2
Richmond/Milpark 23,75 1,25 2
Bedfordview 27,67 2,05 3
Bruma 15,00 - 1
Woodmead 35,00 8,22 5
Sunninghill 27,75 7,43 4
Bryanston/Epsom Downs 32,80 6,73 5
Fourways 30,00 - 1
Houghton 31,25 3,75 2
Melrose Arch 40,00 4,08 3
Hyde Park 34,17 1,18 3
Eastgate/Kramerville - - -
Ormonde - - -
Midrand 38,67 8,96 3
Hendrik Potgieter Corridor (incl. Ruimsig) 22,50 - 1
Waterfall 41,00 15,39 4
Waverley/Bramley 32,50 2,50 2
Constantia Kloof - - -
Morningside - - -
Greenstone 28,00 - 1
East Rand
Germiston 8,00 - 1
Benoni CBD 8,00 - 1
Benoni dec. - - -
Benoni (Lakeside Mall area) - - -
Boksburg CBD 9,00 - 1
Boksburg North 9,00 - 1
Springs - - -
Pretoria CBD 30,00 - 1
Lynnwood Glen - - -
Lynnwood 31,75 8,32 4
Lynnwood Manor 35,00 - 1
Lynnwood Ridge 43,33 16,50 3
Rode’s Report 2024:2 61 Office rentals

Table 5.8 (continued)

Typical gross outgoings for prime office buildings
As reported by brokers
R/rentable m² per month: quarter 2024:2
Mean SD n
Faerie Glen 33,17 12,25 3
Val de Grace - - -
Menlyn 36,50 1,50 2
Menlo Park/Hazelwood 42,50 12,50 2
Brooklyn/Waterkloof 45,25 15,25 2
Nieuw Muckleneuk 48,50 18,50 2
Hatfield/Hillcrest 39,33 2,36 3
Centurion 37,33 15,37 3
Highveld Technopark 35,83 4,25 3
Highveld Extensions 37,50 9,50 2
Sunnyside 20,00 - 1
Arcadia 20,00 - 1
Route 21 Corp. Park 43,25 13,25 4
Silver Lakes/Die Wilgers 29,00 1,00 2
Mbombela CBD 38,50 0,00 3
Mbombela dec. 43,00 0,00 3
Polokwane 31,67 9,43 3
Bloemfontein CBD 24,67 7,32 3
Westdene 28,00 4,97 3
Durban CBD 28,75 11,25 2
Durban Berea 29,00 11,00 2
Essex Terrace 45,00 - 1
Westway 45,25 4,75 2
La Lucia Ridge 59,11 3,06 3
Westville CBD 51,02 6,02 2
Pinetown 40,00 - 1
Hillcrest-Kloof (Upper Highway) 40,00 - 1
Umhlanga 63,87 25,52 5
Ballito 50,00 - 1
Point Waterfront 40,00 - 1
Gqeberha CBD - - -
Greenacres: Parks - - -
Greenacres: Single - - -
Walmer Park - - -
Walmer, Main Road - - -
South End - - -
Humerail/Humewood - - -
Newton Park/Cape Road - - -
East London CBD 29,00 - 1
Southernwood 32,00 - 1
Berea 32,00 - 1
Chiselhurst 32,00 - 1
Beacon Bay 32,00 - 1
Vincent 32,00 - 1
Rode’s Report 2024:2 62 Office rentals

Table 5.8 (continued)

Typical gross outgoings for prime office buildings
As reported by brokers
R/rentable m² per month: quarter 2024:2
Mean SD n
Cape Town CBD - - -
Sea Point - - -
Waterfront: Portswood Ridge - - -
Waterfront: Silo District 55,00 - 1
Granger Bay 50,00 - 1
Gardens - - -
Salt River - - -
Woodstock 45,00 - 1
Observatory/Black River Park 49,00 - 1
Mowbray 51,00 - 1
Kenilworth (Racecourse) 44,00 - 1
Rondebosch 42,00 - 1
Newlands 60,00 - 1
Wynberg 32,00 - 1
Westlake 50,00 - 1
Tokai - - -
Claremont Lower* - - -
Claremont Upper - - -
Hout Bay - - -
Noordhoek (Sun Valley) - - -
Pinelands/Golf Park 44,00 - 1
Athlone - - -
Milnerton 20,00 - 1
Panorama - - -
Table View/Parklands 17,50 2,50 2
Century City 28,67 18,98 3
Maitland - - -
Goodwood (N1 City) - - -
Tygerberg Hills/Plattekloof 47,00 - 1
Bellville CBD 15,00 0,00 2
Tyger Valley area 28,25 13,75 4
Durbanville 23,00 7,00 2
Mitchells Plain - - -
Airport - - -
Khayelitsha - - -
Kuils River - - -
Paarl - - -
Wellington - - -
*Claremont Lower: east of Main Road
Rode’s Report 2024:2 63 Office rentals

Table 5.8 (continued)

Typical gross outgoings for prime office buildings
As reported by brokers
R/rentable m² per month: quarter 2024:2
Mean SD n
Stellenbosch
The Vineyard - - -
Technopark - - -
Other - - -
Helderberg
Gordon's Bay - - -
Somerset West CBD - - -
Somerset Mall area - - -
Strand - - -
George Central - - -
George dec. - - -
Pietermaritzburg Core CBD 28,00 - 1
Peripheral CBD 26,00 - 1
Pietermaritzburg dec. 24,00 - 1
Richards Bay - - -
Empangeni - - -
Windhoek 31,50 - 1
Rode’s Report 2024:2 64 Panellist logos

Our heartfelt thanks to the companies that contributed to the office-market survey. By
clicking on their logos, you will learn more about these panellists.
Rode’s Report 2024:2 65 Panellist logos
Rode’s Report 2024:2 66 Office demand and vacancies

Chapter 6: Office demand and vacancies

Office demand improves further

Kobus Lamprecht

The office market continued to improve about 18% in the fourth quarter of 2021 and
in the second quarter of 2024 as illustrated has since improved. Looking at the bigger
by the lower vacancies reported in this picture, the current national vacancy rate is
chapter. The market has been boosted by still well above the pre-Covid level of 10,5%
the return of some workers to offices, albeit in 2019 and the historical long-term average
in many instances in a hybrid way with 2 to 3 of 9,4% (calculated on roughly 23 years of
days per week at the office. Other factors SAPOA data).
supporting the return to offices are unreliable
electricity and water problems at home (think The election results and subsequent formation
Johannesburg). of a Government of National Unity (GNU)
have generally been welcomed by investors.
Rode found that the average South Africa This was illustrated by the rise in local
vacancy rate of grades A+, A and B space equities in June and the strengthening of the
combined in decentralized nodes was ZAR. However, we must temper our euphoria
13,1% in the second quarter of 2024, down considering the grave structural problems
from 13,9% in the first quarter of 2024. facing SA.
This was also lower than the 14,6% average
of the second quarter of 2023 (a year ago). Rode’s forecast of office vacancies and market
‘Decentralized’ means all nodes in a metro rentals over the next 6 years is provided in
lumped together, excluding the (old) CBDs. Rode’s SA Trends publication.

The chart below shows that the national In Annexure 2 we explain how Rode calculates
vacancy rate (excluding CBDs) peaked at the office vacancy factors.

Source of data: Rode’s office market survey; SAPOA

Rode’s Report 2024:2 67 Office demand and vacancies

Vacancy rates on a national level of their excellent amenities. In practice, this

flight to quality means landlords generally
Turning to the results of the Rode survey for experience higher vacancies in older buildings
the second quarter of 2024, the national and lower vacancies in newer buildings. To
weighted decentralized vacancy rate for illustrate this, look at the comparatively
grades A+, A and B combined stood at 13,1%, lower vacancy rates for newer space based
down from 14,6% in the second quarter of on Rode’s second-quarter data, shown on
2023. As stated above, vacancies are still high the chart. Also, note the relatively sharper
as the historical long-term average is 9,4%, as decline in grade A+ vacancies over the past
per Rode’s calculations of SAPOA data. 1 year compared to the moves seen in other
grades.
A long-term vacancy rate of 9% has an
important implication when valuing prime Also note on the chart how vacancy rates of
office buildings. It is dead wrong to assume grade C offices have worsened over the past
that even if an office building is nearly fully let year, in contrast to the improvement seen
at the time of valuation, this will persist in at better-quality buildings. Thus, you do not
perpetuity. The rule is that the older the want to own old office buildings – unless you
building (the lower the grade), the higher can buy them at a bargain-basement price
the typical vacancy factor. This is especially a with a view to conversion.
problem at present as tenants in grades C and
B tend to upgrade to A or A+ office space On the pie chart (see page below), note how
because the market rentals of the newer grade A+ vacancies in decentralized nodes of
space are exceedingly low in real terms. the major cities averaged less than 10% in the
second quarter of 2024. In all these cities,
Apart from the cost factor, some tenants vacancy rates of grade A+ space improved
are relocating to newer offices because compared to the second quarter of 2023.

Source of data: Rode’s office market survey

1 The long-term average was calculated from 2000.

Rode’s Report 2024:2 68 Office demand and vacancies

Decentralized office vacancy rates of major cities in 24Q2

grades A+ (smoothed)

9,2 9,6

6,0
9,5

7,9

Johannesburg Pretoria Durban Cape Town SA

Source of data: Rode’s office market survey

Office construction activity remains below the same period in 2023 and
at low levels also well down from pre-Covid levels,
according to Stats SA data. The reason
A positive for landlords is that the building for the low building activity is high vacancies,
of new offices fell significantly during the caused by the work-from-home trend,
Covid pandemic and has remained low over-building and slow economic growth.
(see chart). The total square metres of offices Chapter 11 has more detail on building
completed in January to May 2024 was 64% activity.

Source of data: Stats SA

Rode’s Report 2024:2 69 Office demand and vacancies

Conversions The third-quarter business confidence could

be better as the uncertainty over the local
Given the poor fundamentals of the office elections is now out of the way.
sector, landlords are either looking to sell
older offices or to convert them to another Below we delve deeper into the latest
use. Conversion projects are not significant vacancy rates on a city level.
in number at this stage due to the high
building costs and elevated interest rates.
Vacancy rates in the
One must also consider the time it takes major cities
to plan and convert such a project, which
Vacancy rates across the major decentralized
reduces the return on investment, unless the
nodes in South Africa’s major cities have
buyer has negotiated a lagged payment with
generally improved after peaking close to the
the seller.
end of 2021, as shown on the first chart. This
Business confidence still is based on the opinion of brokers active in
poor nodes across the country.

In the second quarter of 2024, only 35% of Pretoria decentralized has bucked the
respondents in businesses surveyed by the downward trend in vacancies observed in the
BER were satisfied with prevailing business other major cities. Its vacancy rate remained
conditions. This was somewhat better than much higher than the national average of
the 30% during the first quarter of 2024 and 13,1% in the second quarter of 2024. The
remains well below the neutral level of 50%, coastal cities of Cape Town and Durban
where the number of respondents satisfied have performed comparatively better. But
and dissatisfied with business conditions is noteworthy is that Johannesburg has also
equal. The low business confidence makes seen a strong improvement in its vacancy rate
sense given the weak economy. over the past few quarters.

Source of data: Rode’s office market survey

Rode’s Report 2024:2 70 Office demand and vacancies

Source of data: Rode’s office market survey

We now delve deeper into the nodal trends rates of the major nodes in the second
within these cities. quarter of 2024.

Vacancy rates in Johannesburg central, which As for Rosebank, it is worth noting that it
includes the CBD and Braamfontein, remain has the second-most office space under
high at above 20% for grades A+, A and B construction of all nodes at 36 000 m2,
space combined. In contrast, the average according to second-quarter data from
Johannesburg decentralized vacancy rate, SAPOA. This represents 27% of the total
which excludes the aforementioned nodes, new space under construction in South Africa.
improved further to 13,2% during the second Of this new Rosebank space, 80% already has
quarter of 2024 from 16% in the second signed tenants.
quarter of 2023 (see chart). Decentralized
vacancy rates were also better than the Some of the decentralized nodes that
first-quarter 2024 average of 14,4%, with are still struggling with high vacancy rates
about 70% of the major nodes showing are Randburg, Rivonia, Sunninghill and
improvement. Illovo.

The largest decentralized node is Sandton, Water

which carries a 25% weight in the
Johannesburg average. Here brokers believe The other factor to consider is the
demand for office space has improved, increasing water problems experienced
with the vacancy rate for grades A+, A in Johannesburg, which are also a factor
and B space combined down to 11,5% in many other agglomerations and towns.
in the second quarter of 2024 from 16,1% a The mismanagement of water reticulation
year ago. Roughly 50% of Sandton’s office (and other services and utilities) will
space is grade A+, which has a vacancy rate of surely drive even more residents to
9,5% and which is in higher demand than consider semi- or full migration. Investors will
older grades B and C office space. follow.

Note on the chart below that Waterfall (11%) For more on Rode’s office rentals and other
and Rosebank (9%) had the lowest vacancy office variables, see Chapter 5.
Rode’s Report 2024:2 71 Office demand and vacancies

Source of data: Rode’s office market survey

Source of data: Rode’s office market survey

Staying in Gauteng, the Pretoria weighted Corporate Park performed comparatively

decentralized vacancy factor of grades A+, A better.
and B offices combined averaged 14,7% in the
second quarter of 2024 − up from 13,4% in Turning to Durban, vacancy rates remain the
the second quarter of 2023. But not all grades highest in Durban CBD and Berea, as shown
have seen worse vacancy rates. The vacancy on the chart below. These are nodes that
rate of grade A+ space improved to 9,5% from struggle with a lack of investment due to
12,6% in the second quarter of 2023. crime and infrastructure decay. That said,
vacancy rates in both nodes improved slightly
Brokers reckon that Hatfield/Hillcrest (21%) compared to the second quarter of 2023.
had the worst vacancy rate of the major
nodes, with a sharp increase seen compared The Durban weighted decentralized vacancy
to a year ago. Centurion and Menlyn saw rate for grades A+, A and B office space
better vacancy rates, but these remain combined averaged 10,5%, which was down
elevated at between 10% and 15%. Rode from 11,3% in the second quarter of 2023.
found that Silver Lakes (8%) and Route 21 This was also lower than the national average.
Rode’s Report 2024:2 72 Office demand and vacancies

Source of data: Rode’s office market survey

The largest decentralized node in Durban is first chart below. All the nodes shown on
La Lucia Ridge/Umhlanga (weight of 58%), the chart had lower vacancy rates when
where vacancy rates averaged 8,6% − an compared to a year ago. This helps to
improvement on the 9,3% in the second explain the strong rental growth discussed in
quarter of 2023. Interestingly, in this node Chapter 5.
vacancies edged up compared to the first
quarter of 2024. Vacancies in Hillcrest/Kloof Note on the chart how several of the nodes
were the second lowest in Durban at around have seen vacancy rates decline to lower than
11%, albeit up compared to a year ago. 10%. The V&A Waterfront continues to stand
out on the positive side. Its vacancy rate for
The Cape Town weighted decentralized grades A+, A and B office space combined
vacancy rate for grades A+, A and B office was only 7,2%, down from 11,7% a year
space combined in the second quarter of ago. Other major nodes where vacancy rates
2024 averaged 11,3%, slightly better than in are less than 10% include Rondebosch,
the second quarter of 2023, as shown on the Claremont and Century City.

Source of data: Rode’s office market survey

Rode’s Report 2024:2 73 Office demand and vacancies

Source of data: Rode’s office market survey

It is also worthwhile to look at the vacancy combined in the second quarter of 2024
trend in Cape Town since 2021 (second chart). averaged 8,3%, lower than 11,8% in the
Firstly, note the high vacancy rates in 2021. second quarter of 2023. All the major
Secondly, a general declining trend in vacancy decentralized nodes saw lower vacancy
rates can be observed since that time. Lastly, rates over the past year, as shown on the
vacancy rates have been volatile so far in chart below. Greenacres, the largest
2024, but do appear to have resumed their decentralised node, has declined sharply to
declining trend in the second quarter of about 10%. Humerail/Humewood (6,2%) and
2024. Walmer (7%) have even lower vacancy rates.
Not shown on the chart is the Gqeberha
The Gqeberha (PE) decentralized vacancy CBD, where vacancy rates are much higher
factor for grades A+, A and B office space at about 18%.

Source of data: Rode’s office market survey

Rode’s Report 2024:2 74 Office demand and vacancies

Vacancy rates in the lower vacancies over the period, as shown on

smaller cities the first chart.

The decentralized vacancy rates for grades A+, Vacancies remain the lowest in the boom
A and B office space combined in secondary town of George, and in Mbombela (Nelspruit).
cities averaged 10,2% in the second quarter of Of the secondary cities, Bloemfontein remains
2024, down slightly from 11,5% in the second under the most pressure, while East London
quarter of 2023. Most of these cities saw has also seen weakness of late. 

Source of data: Rode’s office market survey

Source of data: Rode’s office market survey

 Rode’s Report 2024:1 75 Office demand and vacancies

Table 6.1
Rode’s office vacancy rates (smoothed)
Quarter 2024:2
Grade Grade Grade Grade
Panellist codes
A+ A B C
Johannesburg CBD - 19,0 30,0 22,3 AV,REA
Braamfontein - 19,5 23,3 13,3 AV
Sandton CBD 9,5 12,1 15,7 14,3 BR,CPS,GB,MR,REA
Dunkeld West - 11,1 12,5 - BR,CPS,MR,WP
Wierda Valley 17,3 18,7 16,4 18,1 CPS,GB,WP
Randburg Ferndale 18,0 16,0 17,7 14,3 CPS,GB,NH
Rivonia 12,2 17,4 21,1 23,3 CPS,GB,SHP
Rosebank 6,7 10,7 16,7 16,5 BR,CPS,GB,MR,REA,SHP,WP
Illovo 13,7 16,5 17,2 16,0 BR,CPS,GB,MR,SHP,WP
Illovo Boulevard 14,7 18,4 16,7 16,7 BR,CPS,GB
Chislehurston 12,2 15,0 10,0 10,0 CPS,GB
Parktown - 12,5 17,3 9,7 AV,CPS,GB,SS
Richmond/Milpark - 12,3 10,0 13,3 AV,GB
Bedfordview 12,2 13,7 19,3 10,7 GB,MR,SS,WHF
Bruma - 11,5 17,7 - GB,MR,SS,WHF
Woodmead - 15,4 15,6 15,3 BR,CPS,GB,REA,SHP,SS,WP
Sunninghill - 12,4 16,8 16,8 GB,REA,SHP,SS
Bryanston/Epsom Downs 9,1 12,7 17,8 15,2 BR,CPS,GB,SHP,TCP,WP
Fourways 16,1 16,5 22,9 22,4 BR,CPS,GB,SHP,WHF
Houghton 9,0 13,2 13,3 - AV,GB
Melrose Arch 11,2 9,7 7,5 - AV,BR,CPS,MR,WHF
Hyde Park - 13,1 12,2 13,2 BR,CPS,MR
Eastgate/Kramerville 7,2 7,2 8,3 7,7 MR,SS
Ormonde - - 6,7 6,7 GB
Midrand 10,0 12,3 17,3 16,7 BR,MR,SHP,SS,TCP,WP
Hendrik Potgieter Corridor - - - -
(incl. Ruimsig)
Waterfall 10,8 11,3 11,1 - BR,CPS,REA,MR,SS,TCP,WHF,
WP
Waverley/Bramley 16,5 16,5 15,0 20,8 AV,CPS
Constantia Kloof - 3,3 5,3 - RA
Morningside - 15,0 15,5 16,0 CPS,GB
Greenstone - 10,4 - - GB,MR,SS,WHF
East Rand
Germiston 10,0 6,7 16,7 10,0 MR,SS
Benoni CBD - - 13,3 10,0 MR,SS
Benoni dec. 10,0 3,3 13,3 13,3 MR
Benoni (Lakeside Mall area) - 10,0 13,3 10,7 MR,SS
Boksburg CBD - - 16,2 12,7 MR,SS
Boksburg North 3,3 3,3 10,0 7,2 MR,SS
Springs - - - -
For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2024:1 76 Office demand and vacancies

Table 6.1 (continued)

Rode’s office vacancy rates (smoothed)
Quarter 2024:2
Grade Grade Grade Grade
Panellist codes
A+ A B C
Pretoria CBD - 10,0 15,7 21,3 AP
Lynnwood Glen 5,6 8,1 12,2 8,7 ABA,AP,CRI,GB,WHF
Lynnwood 7,4 8,4 12,3 16,1 ABA,AP,CRI,GB,HN,WHF
Lynnwood Manor 5,7 5,7 8,2 10,0 ABA,AP,CRI,GB,WHF
Lynnwood Ridge 8,9 9,7 9,2 9,7 ABA,AP,CRI,GB,HN,WHF
Faerie Glen 8,2 7,5 14,3 12,5 ABA,AP,CRI,GB,WHF
Val de Grace - 3,8 11,3 6,2 AP,CRI
Menlyn 9,8 13,9 18,0 12,0 ABA,AP,CRI,GB,WHF
Menlo Park/Hazelwood 7,0 11,2 14,5 - AP,CRI,GB
Brooklyn/Waterkloof 11,7 18,7 14,8 19,5 AP,CRI,GB,WHF
Nieuw Muckleneuk 5,5 14,5 11,7 19,0 AP,CRI,GB
Hatfield/Hillcrest 8,0 25,0 19,5 23,0 AP,CRI,HN,WHF
Centurion 8,5 14,3 16,2 16,3 ABA,AP,CRI,WHF
Highveld Technopark - 13,6 14,1 - ABA,AP,CRI
Highveld Extensions 11,0 16,7 16,7 - CRI
Sunnyside - - - 29,0 AP,CRI
Arcadia - 23,7 21,3 26,5 AP,CRI
Route 21 Corp. Park 6,1 9,4 7,9 7,9 ABA,AP,CRI,MAS,WHF
Silver Lakes/Die Wilgers - 11,8 8,7 12,5 AP,CRI,GB,HN,WHF
Mbombela CBD - - 15,1 16,7 KEL,KWP,MPV,ORI,PG
Mbombela dec. 3,3 9,2 10,0 14,3 KEL,KWP,MPV,ORI,PG
Polokwane - 8,2 11,3 15,8 ES,MO,SF,TG
Bloemfontein CBD - 12,7 18,6 24,8 BR,EK,EQV
Westdene 14,7 14,7 16,3 21,7 BR,EK,EQV,NR,PLA
Durban CBD - 18,8 22,2 26,5 SPS,WHF,ZZ
Durban Berea - 15,5 17,5 19,8 SPS,WHF,ZZ
Essex Terrace 12,3 12,3 15,5 14,3 SPS,ZZ
Westway 10,5 11,7 14,3 16,7 ACU,BR,SPS,WHF,ZZ
La Lucia Ridge 7,3 8,9 9,0 19,0 BR,CAM,GI,SPS,WHF,ZZ
Westville CBD - 10,0 13,6 19,0 BR,ACU,GI,SPS,ZZ
Pinetown 21,3 16,7 18,7 21,8 SPS,ZZ
Hillcrest-Kloof (Upper Highway) - 10,6 12,3 13,3 FUN,SPS,ZZ
Umhlanga 6,2 11,3 7,9 16,7 BR,CAM,GI,SPS,WHF,ZZ
Ballito 12,8 12,2 11,2 13,3 AP,SPS,ZZ
Point Waterfront 13,5 14,3 16,3 - SPS,ZZ
Gqeberha CBD - 16,7 19,3 22,9 ARN,SUM,TR
Greenacres: Parks 8,2 8,8 14,2 12,7 ARN,BR,BV,SUM
Greenacres: Single 6,2 7,7 9,6 14,7 ARN,BR,BV,SUM,TR
Walmer Park 6,0 7,0 7,2 6,5 ARN,BR,BV,SUM
Walmer, Main Road 4,0 5,6 8,6 10,0 ARN,BR,BV,SUM
South End 4,3 4,3 8,2 8,8 ARN,BR,BV,SUM
Humerail/Humewood 4,3 6,2 8,4 6,3 ARN,BR,BV,SUM
Newton Park/Cape Road 4,7 9,2 11,4 14,4 ARN,BR,BV,SUM,TR
Rode’s Report 2024:1 77 Office demand and vacancies

Table 6.1 (continued)

Rode’s office vacancy rates (smoothed)
Quarter 2024:2
Grade Grade Grade Grade
Panellist codes
A+ A B C
East London CBD - 18,9 16,5 23,3 CAP,GW,TR
Southernwood - 10,0 16,7 16,7 CAP
Berea - 13,3 9,8 13,3 CAP,TR
Chiselhurst - 13,3 20,0 20,0 CAP
Beacon Bay 8,3 10,0 6,7 6,7 CAP,TR
Vincent 6,7 10,0 7,2 6,7 CAP,TR
Cape Town CBD 12,6 13,0 17,7 16,4 AN,DW,RIO,SPI,VP,WHF
Sea Point 6,7 12,2 17,8 17,8 AN,DW,VP,WHF
V & A Waterfront: 6,7 6,7 6,7 - AN,SPI
Portswood Ridge
V & A Waterfront: 6,7 6,7 6,7 - AN,SPI
Silo District
Granger Bay 8,3 8,3 8,3 - AN,SPI
Gardens 6,7 6,7 8,8 9,3 AN,SPI,VP
Salt River 11,0 12,0 10,8 10,8 AN,DW,VP
Woodstock 7,2 11,6 16,1 14,2 AP,DW,SPI,VP,WHF
Observatory/Black River Park 8,3 12,0 12,0 8,3 AP,DW,SPI,VP,WHF
Mowbray 6,5 8,5 8,5 8,3 AP,COR,DW,SPI,VP
Kenilworth (Racecourse) 3,8 4,3 6,3 5,3 AP,COR,DW
Rondebosch 5,3 8,3 6,7 4,3 AP,COR,DW,SPI
Newlands 3,3 6,9 6,7 4,3 AP,COR,DW,SPI
Wynberg 8,0 5,7 11,0 12,0 AP,COR,DW
Westlake 7,7 7,9 8,2 10,0 AN,COR,DW,SAF,SPI
Tokai 4,7 5,3 6,7 4,3 COR,SAF
Claremont Lower 3,8 9,5 10,7 8,3 AP,COR,SPI
Claremont Upper 4,5 5,7 9,2 6,5 AP,COR,DW
Hout Bay - - - -
Noordhoek (Sun Valley) - - - -
Pinelands/Golf Park 10,0 10,9 8,5 10,4 AP,COR,DW,SPI,VP
Athlone - - - -
Milnerton 11,0 11,6 16,6 15,6 AP,RIO,SAF,SCM,VP
Panorama 3,3 3,3 7,3 7,3 AP,VP
Table View/Parklands 6,7 8,7 23,7 11,2 SCM
Century City 5,8 8,8 10,6 8,7 AP,CPC,RIO,SAF,SPI,VP,WHF
Maitland 4,3 6,8 7,3 8,3 AP,DW
Goodwood (N1 City) 11,8 11,1 12,7 12,8 AP,DW,SCM,VP
Tygerberg Hills/Plattekloof 13,1 14,1 12,5 11,8 AP,DW,SCM,SPI,VP
Bellville CBD - 18,4 17,4 13,9 AP,DW,SCM,VP
Tyger Valley area 5,2 16,0 12,8 11,7 AP,DW,PN,SCM,SPI,VP
Durbanville 5,0 6,7 15,0 15,0 DW
Mitchells Plain - - - -
Airport - - - -
Rode’s Report 2023:3 78 Office demand and vacancies

Table 6.1 (continued)

Rode’s office vacancy rates (smoothed)
Quarter 2024:2
Grade Grade Grade Grade
Panellist codes
A+ A B C
Khayelitsha - - - -
Kuils River - 3,3 3,3 4,3 AP
Paarl 13,3 13,3 6,7 10,0 MAF,PRU
Wellington - - - -
Stellenbosch
The Vineyard - - - -
Technopark - - - -
Other - - - -
Helderberg
Gordon's Bay - - - -
Somerset West CBD - - - -
Somerset Mall area - - - -
Strand - - - -
George Central 6,7 6,7 8,3 16,7 GRV,MUL
George dec. 6,7 8,3 8,3 6,7 GRV,MUL
Pietermaritzburg Core - - 16,7 16,7 HN
CBD
Peripheral CBD - - 10,0 13,3 HN
Pietermaritzburg dec. 6,7 9,0 10,0 13,3 HN
Richards Bay - - - -
Empangeni - - - -
Windhoek 14,7 24,0 25,0 25,0 PVN
*Claremont Lower: east of Main Road
For definitions, see Glossary of terms and abbreviations in Annexure 1.

Table 6.1 (continued)

Rode’s weighted office vacancy rates (smoothed)
Quarter 2024:2
Avg
Grade Grade Grade Grade
(without
A+ A B C
grade C)
Major cities
Johannesburg decentralized 9,6 11,9 16,6 15,5 13,2
Pretoria decentralized 9,5 15,9 15,3 19,2 14,7
Durban decentralized 7,9 10,1 13,3 16,7 10,5
Cape Town decentralized 6,0 11,9 11,9 9,7 11,3
Gqeberha decentralized 4,9 15,3 15,5 12,7 8,3

National decentralized 9,2 12,5 15,8 16,4 13,1

For definitions, see Glossary of terms and abbreviations in Annexure 1.
Rode’s Report 2024:2 79 Industrial rentals and vacancies

Chapter 7: Industrial rentals and vacancies

Low industrial stock continues

to boost rentals
Kobus Lamprecht

The industrial property market continues building-construction inflation (as measured

to impress, with sharp nominal rental by the BER BCI) of about 9%.
growth amid continued low vacancy rates.
This means industrial properties are still Regionally, all the major conurbations
the best-performing category among the shone with strong nominal rental growth
three major non-residential property (4% to 9%) and low vacancies. The Gauteng
types. conurbations of Central Witwatersrand and
the East Rand saw the fastest rental growth.
Nominal gross market rentals in South The Cape Town market is still performing
Africa for industrial space of 500 m2 grew strongly, but rental growth is cooling after a
by 6,1% in the second quarter of 2024 strong run. We touch on the regional trends
compared to the second quarter of 2023. later in the chapter.
This is up from the 4,8% growth recorded
in the first quarter of 2024. Rentals were As for vacancies, all major conurbations
about 20% higher compared to the pre- have low vacancy rates ranging between
pandemic levels of 2019 − no mean feat 3% and 5% as surveyed by Rode. Please
given the state of the economy. Rentals note that these include all sizes of industrial
of industrial space of 1 000 m2 grew by properties combined. Logistics properties
a similar rate (+6,2%) in the second continue to have ultra-low vacancy rates
quarter of 2024. However, in real terms, as reported by major players Equites and
rentals are still declining due to elevated Fortress (see chart).

* Half-year ended December 2023

# Year ended February 2024
Source: Financial results of the various listed property funds
Rode’s Report 2024:2 80 Industrial rentals and vacancies

Note that the rentals in our survey Drivers of the industrial market
do not include ultra-large premises like
logistics warehouses of 20 000 m². This new The key driver of industrial property is
generation of super-buildings is generally the performance of the manufacturing
bespoke, meaning the rentals tend to be and retail sectors. The manufacturing sector
higher than market rents as the rent will be a underpins the demand for industrial space for
function of construction and land costs and manufacturing production purposes, while
the initial return required by the developer. the retail sector underpins the demand for
One would expect the sharp increase in warehouse or distribution space (via local
building-construction inflation to continue to manufacturing and imports).
put upward pressure on new-build rentals.
Equites, a major owner of large warehouses Manufacturing production started 2024
in SA, said in May that it had achieved a on a positive note, growing by 0,7% in
roughly 30% increase in market rentals for the period from January to May 2024
A-grade logistics facilities over the past two compared to the same period in 2023, as
years. shown on the chart. That said, looking
back a few years, production levels so
In the text that follows, we first discuss the far in 2024 are still 7,2% below the
major factors influencing the market, before 2019 level – that is, before the Covid
delving deeper into the rental performance of pandemic – which is indicative of the sector’s
major industrial conurbations. underperformance.

Source of data: Stats SA

Rode’s Report 2024:2 81 Industrial rentals and vacancies

The second manufacturing chart shows sector's conditions remain tough. The
the Absa Purchasing Managers’ Index BER, the compiler of the PMI, noted
(PMI), which is used as a guideline on that despite sustained electricity supply,
conditions in the manufacturing sector. insufficient demand seems to have
Encouragingly, the PMI averaged 54 index weighed heavily on the sector’s
points level in April 2024, which is above performance.
the 50 level that separates expansion and
contraction. As mentioned above, the industrial
ABSA Purchasing Managers' Index property market is also affected by the
health of the retail sector. In real
(Seasonally adjusted)
65

60
Expansion
terms, national retail sales in January to
55
May 2024 was roughly the same level
as in January to May 2023 (see chart
50
below). Sales were up slightly compared
Index

45
to the 2019-level, before the Covid-
40
pandemic. Retail confidence remained
35
Contraction
weak at 39 index points in the second
30 quarter of 2024, but did improve from 34 in
06 07 08 09

Source of data: BER; ABSA

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
the first quarter of 2024, according to the
BER. We discuss the retail sector in detail
However, it dipped to around 45 index in our sister publication Rode’s Retail
points in May and June, indicating that the Report.

Source of data: Stats SA

 Rode’s Report 2024:2 82 Industrial rentals and vacancies

A key determinant of the industrial sector The weak business confidence can be
is the ever-growing demand for new- explained by the slower-than-usual global
generation warehouse or distribution space. growth and a weak local economy. We
found that there is a lag of five to six
The drivers are: quarters between business confidence and
the vacancy rate of industrial space.
• Modern racking systems that make
stacking heights of more than 15 metres Rode’s national vacancy factor during the
possible, thus requiring a new generation Covid pandemic rose to a peak of 2,87 points
of warehouses. This has the potential in the first quarter of 2021 but has trended
to make some existing distribution centres down since then. The latest figure was
outdated. However, it is technically 2,24 points in the second quarter of 2024,
possible to increase the eaves height of down from 2,31 points in the second quarter
existing buildings. of 2023. This is considered ‘low’ on Rode’s
vacancy scale of 1-9, implying that 3,7%
• Strongly growing online retail sales. These of industrial property was vacant at the time.
sales grew by 29% in 2023 to reach about Looking at the bigger picture, vacancies
6% of total retail sales, up from 4,7% in are lower than pre-Covid levels and below
2022, according to the World Wide Worx’s the long-term average of 4,2% since 2000. In
Online Retail in South Africa 2024 study. contrast, the vacancy rates of the office,
Many local retailers have embraced retail and residential property markets are
online retail, such as Shoprite Checkers. Its still above their long-term averages, which
Sixty60 service had a 63% increase in the showcases the resilience of industrial
latter half of 2023, according to the study. property.
Currently, Takealot is South Africa’s largest
online retailer, but competition should The chart shows the historical relationship
increase after Amazon launched its online between industrial vacancies and rentals. The
offering in May 2024. better vacancy rates over the past few years
have led to strong nominal market-rental
• The continual reorganisation by retailers of growth, which has averaged between 4% and
their supply chains and distribution 6% annually since 2022.
strategies.
Looking ahead, the risk of higher vacancies
Another factor to consider is the impact of remains in the short term due to the lag
changes in business confidence (as measured between business confidence and vacancies.
by the RMB/BER Business Confidence On the other hand, business confidence could
Index) on industrial vacancy rates. Naturally, well increase in coming quarters thanks to
business decision makers can be expected optimism regarding the new government.
to be hesitant to expand production capacity This means it is likely that the industrial
or storage space and to rent more space market will remain on a firm footing.
when they are dissatisfied with prevailing Change in prime industrial rentals

business conditions. Business confidence vs

Industrial property vacancies

deteriorated significantly in 2023, averaging National

3.5

only 32%, compared to 41% in 2022. This

r²=0,6
sm oothe d
3.0
Vacancy scale

means, on average, only 32% of business

2.5
(1-9)

2.0

executives surveyed were satisfied with 25

20
R e nta ls
Vacancy factors 1.5

prevailing business conditions during the 1.0

Change in rentals

15
(%; y-o-y)

10

year. The latest figure was a still poor 35% in 5

the second quarter of 2024, albeit up from -5

30% in the first quarter of 2024.

-10
00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series

Rode’s Report 2024:2 83 Industrial rentals and vacancies

Contractual escalation rates increased by 6,1% nationally for prime space

of 500 m² compared to the second quarter of
In Table 7.4 we show the average contractual 2023 – picking up from 4,8% growth recorded
rental escalation rates of new leases. It in the first quarter of 2024. In real terms,
is important to distinguish between a rentals continue to decline due to elevated
market growth rate and an escalation rate. building-construction inflation. By using the
Rode defines a market growth rate as the BER Building Cost Index as a deflator, we look
percentage by which market values or market at real rentals from a developer’s point of
rentals (as the case may be) change over a view.
given period based on market dynamics.
A contractual escalation rate is the rate by The first chart shows the trend in
which a rental is hiked once a year in terms of nominal market rentals by major industrial
a lease. The ruling market escalation rate conurbation. Note that rentals in absolute
can be seen as an attempt by the market terms are the highest in Durban by some
to forecast the growth in market rentals margin, followed by Cape Town. The probable
over the duration of the lease, but this reason is the undulating shape of the land in
attempt is evidently rarely successful (see Durban, which means developers must first
Glossary). create level platforms before putting in
services. An additional boost came with
Nominal prime industrial rentals the struggles of the largest developer in
Durban. Rentals are comparatively lower in
(500-m² units)
80
70
60
Smoothed
the Central Witwatersrand and the East
50

40
Rand. Also notable is the superior growth of
Cape Town since 2008.
(log scale)

30
R/m²

The second chart (see page below) shows the

20
C ape Town
Durban
East Rand
C entral Witwatersrand
trend in rentals since the pandemic.
10
00 02 04 06 08 10 12 14 16 18 20 22 24
Noteworthy is that all four conurbations have
Source of data: Rode's Time Series seen strong growth over the period, with
rentals up by around 20% since the fourth
Rental performance quarter of 2019. The industrial market has
benefited from fast-growing online sales and
As stated above, in the second quarter less speculative development than office
of 2024 nominal industrial market rentals buildings and malls.

Source of data: Rode’s Time Series

Rode’s Report 2024:2 84 Industrial rentals and vacancies

Source of data: Rode’s Time Series

Interestingly, rentals in Central Wits have industrial space at the Airport and in Parow is
grown at the fastest rate (+9,3%) compared low and that landlords are in the driving seat.
to the other conurbations in the second Another panellist noted that space in Cape
quarter of 2024, even outperforming Cape Town “is let rapidly if market-related rentals
Town. This is up from 5,8% in the first are asked”.
quarter, amid low vacancies. One Rode
panellist noted that demand is strong for It is clear from the chart that most
mini-units and large warehouses. Some of conurbations in South Africa had low
the areas with strong demand are Longlake vacancy rates, averaging less than 5% in the
and Longmeadow. The vacancy rate of second quarter of 2024. This is in line with a
Central Witwatersrand fell to 3% in the comment from a panellist that there is a
first half of 2024 from 3,4% in the first “shortage of brownfield industrial stock
half of 2023, as shown on the chart. The same nationally”.
cannot be said about the Far East
Rand, where Rode found the vacancy rate The exceptions have been Bloemfontein and
to be 4,7%, the highest of the Gauteng Gqeberha, where vacancy rates average
conurbations. about 6%, albeit lower than in the first half of
2023.
In the East Rand and Durban, nominal rental
growth averaged 6,8% and 5,4% respectively. It is also important to look at rentals
from a real perspective, that is, after
Vacancy rates in both conurbations are low construction-cost inflation. Real rentals are
(below 5%) but have risen slightly compared still in negative territory due to the sharp
to 2023 (see chart). increase in building-construction costs (see
Chapter 11 for more on building costs and
In Cape Town, rental growth was solid at construction activity levels). Note that the
4,9%, albeit slowing somewhat from 5,2% Central Witwatersrand and East Rand have
in the first quarter of 2024. Rental growth been trending down since the 2008 peak.
continues to be driven by its low vacancy rate What does this tell us about the business
of 3,5%. One panellist noted that the stock of heart of SA?
Rode’s Report 2024:2 85 Industrial rentals and vacancies

wake of hoped-for renewed economic growth

Real prime industrial rentals (500-m² units)
2021 rands
80

70
Smoothed
sometime in the future.
60

50 Operating expenses are also an important

(log scale)

factor to consider when assessing the

R/m²

40

profitability or viability of a property (see

30 C ape Town
Durban Table 7.5). Note, as always, that gross
operating expenses exclude utility charges
East Rand
C entral Witwatersrand

00 02 04 06 08 10 12 14 16 18 20 22 24
like a tenant’s own electricity, refuse removal,
water and sanitation, which are always
Source of data: Rode's Time Series; BER BCI

As a yardstick of potential future growth in (assumed to be) for the account of the tenant.
market rentals, we compare pioneer rentals
with prevailing market rentals for prime The remainder of this chapter includes:
industrial premises of 1 000 m² (see Table 7.1
on the next page). Pioneer rental levels often • mean prime industrial rentals by
reflect (long) leases signed on newly erected township;
on-demand buildings, and these rentals then • the standard deviations from these
reflect today’s construction costs (in contrast mean rentals;
to today’s market rents), as developers
• indicative operating costs; and
naturally expect an immediate fair income
return on their development costs. • the predominant escalation rates.

Thus, these rentals are an early indicator of This concludes our section on industrial
the eventual level market rentals will reach rentals and vacancies. Note that our industrial
once demand catches up with supply in the tables follow. 

The reference to real means that nominal prices have been deflated (that is, adjusted for
inflation). In this chapter, industrial rentals are deflated by the Bureau for Economic Research’s
Building Cost Index (BER BCI). By using building costs as a deflator, the reader can interpret the
graphs from a developer’s point of view, that is they can serve as a proxy for the viability of new
developments over time, holding constant capitalization rates and operating expenses.

The industrial rental tables contain regression parameters to allow readers to interpolate rental
rates for area sizes other than those given in the tables. These parameters are necessary because
the relationship between rental rates and floor area is not linear. For more details on how to
use these equations, refer to Annexure 3 on annexure page XVI.

Readers are reminded that the vacancy figures in the graph above are not actual vacancy
percentages, but rather graduations on a 1-9 vacancy scale. For more information, see the
notes to the industrial tables on p. 112 Furthermore, the vacancies are for all the unit sizes
(250 m², 500 m², 1 000 m², 2 500 m², 5 000 m² and 10 000 m²) combined, as surveyed by Rode.
In reality, vacancies could differ across the different-sized units.
Rode’s Report 2024:2 86 Industrial rentals and vacancies

Table 7.1
Pioneer industrial rentals
Highest gross nominal market-rental rate achieved (1 000 m² units)
Quarter 2024:2
Rands per rentable m², gross leases (excl. VAT)
Normal prime Inferred growth
Pioneer
mean potential
Central Witwatersrand R110 R61 80%
West Rand R95 R52 84%
East Rand R105 R59 78%
Durban R120 R71 69%
Cape Town R120 R64 87%
 Table 7.2
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Central Witwatersrand
Cambridge Park 74,25 74,25 74,25 74,25 75,70 76,75 1,0 4,254 0,008 0,70
Wynberg Proper 56,98 52,70 49,68 48,65 48,15 44,85 2,4 4,326 -0,056 0,92
Strijdom Park 63,68 62,35 59,17 57,76 57,54 56,14 1,6 4,335 -0,034 0,94
Kya Sand West 58,78 57,80 57,40 55,30 53,27 50,83 3,7 4,299 -0,038 0,94
Kya Sand East 51,98 51,83 50,80 50,43 45,50 45,10 3,3 4,205 -0,042 0,83
Lanseria Corporate Estate 70,83 68,38 71,95 70,15 67,13 67,13 1,7 4,336 -0,013 0,42
Cosmo Business Park 66,47 66,61 69,90 70,20 70,90 70,50 2,8 4,099 0,018 0,78
Mostyn Park 66,77 63,43 63,83 64,85 64,30 65,08 1,7 4,188 -0,002 0,04
Clayville/Olifantsfontein 65,85 66,10 65,10 65,86 64,83 63,08 2,7 4,248 -0,010 0,62
Chloorkop 61,51 60,00 59,38 59,44 57,99 57,78 1,2 4,198 -0,016 0,91
87

Amalgam 46,13 46,10 45,35 43,35 43,10 42,17 1,0 3,988 -0,027 0,95
Crown Mines 47,30 47,52 47,10 45,32 43,90 42,90 1,0 4,036 -0,029 0,91
Industria 47,03 42,67 42,00 41,03 37,00 40,40 1,0 4,067 -0,046 0,69
Booysens/Booysens Reserve/Ophirton 42,33 42,35 40,08 37,55 37,90 35,88 1,0 4,016 -0,047 0,94
Village Main/Village Deep/New Centre 43,03 39,37 38,00 36,63 34,97 33,23 1,0 4,092 -0,064 0,97
Benrose 42,30 42,30 39,80 39,80 39,80 39,80 1,5 3,840 -0,018 0,68
Steeledale/Electron/Tulisa Park 50,58 48,35 47,30 46,55 44,90 44,25 1,0 4,102 -0,034 0,97
Aeroton 60,30 60,30 58,42 58,40 58,40 55,98 1,0 4,201 -0,018 0,82
Devland 41,50 36,55 35,50 34,05 34,00 34,05 - 3,928 -0,047 0,74
Nancefield 40,00 35,00 25,00 23,00 20,00 20,00 - 4,728 -0,199 0,91
Cleveland/Heriotdale 43,33 43,33 39,58 39,33 38,05 37,53 2,3 4,003 -0,042 0,90
Newlands/Martindale 46,75 46,80 41,75 41,75 39,28 36,78 - 4,219 -0,065 0,93
Kew/Wynberg East 42,68 41,06 40,26 38,83 37,08 35,05 2,0 4,037 -0,050 0,97
Bramley View/Lombardy West 47,83 47,85 44,25 40,20 37,70 36,65 1,0 4,345 -0,082 0,97
Marlboro South (Alexandra) 53,80 53,80 50,70 48,50 48,60 48,55 1,0 4,168 -0,033 0,85
Halfway House: hi-tech strip 72,61 72,06 70,68 69,20 71,58 70,69 2,0 4,314 -0,007 0,31
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Halfway House: Richards Drive 71,81 70,31 69,06 67,92 67,21 65,25 2,0 4,404 -0,024 0,98
Randjespark 71,73 72,17 70,62 72,73 73,83 75,39 1,8 4,189 0,013 0,66
Corporate Park (Midrand) 73,19 73,74 73,84 74,63 75,46 75,27 1,9 4,247 0,008 0,94
Commercia 62,33 61,53 60,30 62,79 64,04 62,55 1,5 4,078 0,007 0,25
Kramerville/Eastgate Ext12 & Ext13 83,65 82,28 80,28 77,70 73,85 73,60 1,4 4,643 -0,038 0,97
Linbro Park 78,41 77,90 76,59 76,38 76,17 76,08 1,6 4,404 -0,008 0,85
Longlake 85,29 84,11 84,22 82,35 81,79 82,50 1,3 4,501 -0,011 0,82
Wesco Park/Eastgate Ext3, Ext11, Ext6, 71,20 71,20 69,80 69,10 70,77 70,00 2,8 4,285 -0,004 0,26
Ext8/Malboro North (New)
City Deep 54,18 53,98 50,46 50,14 49,93 48,87 1,0 4,147 -0,029 0,86
North Riding/Hoogland 75,40 75,15 73,75 75,00 74,73 75,75 2,5 4,310 0,001 0,02
88

Samrand Centurion 77,09 76,58 76,36 77,63 78,12 76,09 2,6 4,339 0,001 0,01
Barbeque Downs 88,05 85,28 82,52 80,51 80,33 79,00 1,5 4,622 -0,028 0,93
Selby Ext 12/13/15/19/20/24/City West 45,43 41,77 40,40 39,40 37,73 36,67 1,0 4,083 -0,053 0,95
Selby Ext 5/10/14/18 43,10 39,40 38,37 38,37 36,05 35,00 1,0 4,008 -0,049 0,90
Selby Ext 11 44,80 41,10 39,73 39,75 37,07 36,37 1,0 4,057 -0,051 0,91
Selby Ext 3/4/6 42,03 38,33 37,67 37,68 35,00 34,30 1,0 3,980 -0,049 0,89
Denver (Old) 32,68 32,67 31,00 31,37 31,03 30,35 4,0 3,592 -0,019 0,80
Denver (New) 45,50 45,50 45,53 46,17 46,20 45,83 1,0 3,796 0,004 0,54
Kyalami Business Park 77,87 77,22 75,86 77,43 75,43 73,80 1,7 4,421 -0,012 0,67
Reuven 45,10 43,85 40,83 39,58 38,55 37,30 1,0 4,091 -0,052 0,97
Selby (Old)/Selby Ext2/Park Central 41,33 38,03 37,37 37,00 35,35 33,73 1,0 3,959 -0,047 0,92
Robertsham 47,90 46,40 45,63 43,49 42,10 40,08 1,0 4,134 -0,047 0,98
Fordsburg/Newtown 41,02 41,00 41,02 39,35 37,60 35,23 - 3,965 -0,040 0,84
Waterfall 84,35 85,87 86,03 93,26 93,81 92,84 1,0 4,256 0,032 0,84
Lords View 73,78 73,12 72,30 75,13 75,99 77,00 1,0 4,206 0,014 0,69
Central Witwatersrand 63,35 62,42 61,03 60,94 59,96 58,26 1,7
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

West Rand
Lea Glen 52,46 52,45 50,68 52,20 52,95 50,57 1,4 3,981 -0,004 0,10
Honeydew X19/20/21/22 65,29 65,30 65,03 63,51 63,53 61,73 1,1 4,269 -0,015 0,87
Stormill 52,10 51,50 49,28 51,65 51,15 49,50 1,2 3,989 -0,008 0,24
Chamdor 44,00 41,53 37,45 34,95 31,40 31,40 1,0 4,325 -0,099 0,97
Factoria 50,27 48,60 51,17 49,53 44,43 40,60 1,0 4,238 -0,052 0,66
Krugersdorp: Delporton - 59,53 - - - - - - - -
Randfontein: Aureus 55,15 - - - - - - - - -
Boltonia 44,35 44,30 44,40 44,35 45,40 45,40 - 3,747 0,007 0,69
Roodepoort: Technikon/Manufacta 38,05 38,00 38,05 38,05 38,00 35,05 - 3,738 -0,015 0,42
Industria North 44,38 41,70 40,07 39,70 38,38 35,10 - 4,081 -0,054 0,92
89

Robertville 50,59 49,93 48,58 48,10 49,92 46,50 1,2 4,010 -0,016 0,54
Laserpark 66,06 66,08 65,65 64,64 64,22 63,23 2,2 4,264 -0,012 0,94
West Rand 53,61 53,16 51,76 51,55 51,12 49,66 1,3
East Rand
Elandsfontein 51,61 50,78 49,97 49,47 50,63 51,08 1,8 3,944 -0,003 0,06
Tunney/Greenhills 67,57 66,33 66,14 66,05 66,50 66,71 2,0 4,214 -0,002 0,13
Henville 52,54 53,26 52,53 51,10 52,11 52,84 1,7 3,979 -0,003 0,07
Hughes 69,69 69,44 68,81 65,69 65,08 64,20 1,8 4,391 -0,025 0,94
Bartletts 69,10 69,10 68,08 64,73 64,77 64,77 1,0 4,363 -0,022 0,86
Lilianton - 38,10 36,00 36,00 35,50 35,00 4,0 - - -
Comet 43,30 43,30 41,30 41,30 41,30 38,60 2,0 3,924 -0,027 0,81
Meadowbrook/Wilbart 67,50 66,94 66,94 65,83 66,14 66,59 1,8 4,234 -0,005 0,54
Sunnyrock 68,83 67,44 67,43 66,05 66,18 65,90 1,8 4,287 -0,011 0,87
Rustivia/Activia Park 54,69 53,97 53,97 52,69 52,54 53,26 1,8 4,048 -0,009 0,69
Eastleigh 55,71 55,10 53,79 54,24 53,61 53,98 2,0 4,060 -0,009 0,66
Sebenza Ext 14 53,70 52,70 52,74 51,99 52,41 52,78 1,6 3,998 -0,005 0,35
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Spartan Ext 16 (Sebenza Link) + Ext 1/3/7 56,99 56,61 56,49 55,46 54,46 55,56 1,7 4,098 -0,010 0,71
Isando 58,34 57,93 56,76 55,92 55,81 55,46 2,6 4,144 -0,014 0,94
Isando 3 58,30 58,30 57,89 55,86 55,38 55,67 2,4 4,161 -0,016 0,86
Jet Park 63,76 63,33 62,74 64,55 65,01 64,76 2,2 4,105 0,007 0,53
Alrode & Xs 52,04 49,20 46,94 45,04 43,79 44,04 1,9 4,189 -0,047 0,92
Alrode South 54,38 49,95 46,25 46,68 46,92 47,72 2,2 4,113 -0,031 0,51
Alberton 50,23 47,73 46,72 45,88 44,88 44,55 1,3 4,066 -0,030 0,93
Aeroport/Spartan Ext 2 67,63 64,31 62,74 60,01 59,87 61,03 1,5 4,354 -0,030 0,78
Delville 43,48 43,48 40,70 40,70 39,20 38,43 1,3 3,971 -0,035 0,92
Roodekop 44,00 43,90 43,80 44,48 45,67 45,13 2,5 3,721 0,010 0,70
Wadeville: Industrial zoning 53,48 51,14 49,96 49,45 49,37 48,25 2,0 4,092 -0,024 0,87
90

Route 24/Meadowdale 65,47 64,79 64,40 62,40 62,40 61,24 1,8 4,285 -0,018 0,96
Germiston S/Industries E 48,77 48,77 47,90 46,33 46,03 45,74 2,0 4,005 -0,020 0,94
Driehoek/Industries W 51,39 51,24 49,51 46,51 44,25 43,58 1,5 4,238 -0,051 0,96
Knights 39,40 39,40 38,70 37,03 37,03 36,03 1,3 3,826 -0,026 0,94
Spartan Proper 55,96 54,40 54,21 53,43 52,63 52,27 2,3 4,112 -0,017 0,95
Founders View 64,27 64,27 63,59 63,29 62,49 62,20 1,3 4,219 -0,010 0,96
Longmeadow 80,59 80,22 79,91 78,38 77,65 76,57 1,3 4,473 -0,014 0,96
Pomona/Kempton Park 70,46 70,46 70,96 70,96 72,07 70,06 1,9 4,249 0,002 0,05
Gosforth Park 70,37 70,37 70,37 71,25 69,88 70,52 1,7 4,254 0,000 0,00
S&J Industrial Estate 74,35 74,26 74,31 73,87 73,98 75,28 2,2 4,297 0,002 0,11
East Rand 60,37 59,75 58,96 58,35 58,22 58,23 1,9
Far East Rand
Boksburg North & East 49,09 48,80 47,94 46,94 46,51 46,23 3,2 3,993 -0,018 0,98
Benoni South 46,27 46,12 45,77 44,77 43,50 43,50 3,5 3,949 -0,019 0,93
New Era/Vulcania 42,10 39,33 38,58 35,84 35,03 33,78 2,0 4,048 -0,058 0,98
Nuffield 38,73 35,03 33,00 29,60 29,60 31,30 3,0 3,963 -0,064 0,74
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Fulcrum 34,05 34,05 32,45 31,40 28,90 28,90 - 3,829 -0,051 0,93
Apex 52,38 51,18 49,56 49,14 47,94 47,52 2,0 4,097 -0,026 0,96
Labore Brakpan 45,20 45,20 39,15 36,55 34,05 33,50 4,0 4,333 -0,092 0,94
Morehill Ext 8 Benoni 46,72 46,52 45,30 44,22 41,24 41,24 1,7 4,071 -0,038 0,92
Far East Rand 45,88 44,90 43,56 42,00 40,72 40,57 2,7
Pretoria
Charlotte Maxeke 50,00 45,00 45,00 40,00 40,00 35,00 1,0 4,375 -0,086 0,94
Pretoria Industrial Township 50,00 45,00 45,00 40,00 40,00 35,00 1,0 4,375 -0,086 0,94
Koedoespoort 60,00 55,00 50,00 45,00 40,00 33,00 1,5 4,966 -0,154 0,97
Waltloo/Despatch 60,00 56,67 56,67 52,50 50,00 50,00 2,3 4,377 -0,052 0,95
Silverton/Silvertondale 58,25 52,50 48,75 47,67 46,00 45,00 3,3 4,378 -0,065 0,90
91

Samcor Park 52,50 52,50 50,00 50,00 47,50 45,00 2,0 4,200 -0,040 0,90
Sunderland Ridge - 67,50 65,00 60,00 55,00 55,00 1,5 - - -
Hermanstad 50,00 45,00 40,00 40,00 40,00 40,00 1,0 4,154 -0,055 0,68
Kirkney 40,00 35,00 32,00 27,00 20,00 18,00 2,0 4,953 -0,222 0,97
Hennopspark X15 & X7 85,00 82,50 82,50 80,00 70,00 60,00 2,5 4,963 -0,086 0,79
Gateway 74,25 72,00 70,00 67,50 62,50 58,75 1,8 4,665 -0,062 0,95
Rooihuiskraal 90,00 82,50 80,00 80,00 70,00 60,00 1,0 5,036 -0,095 0,86
Louwlardia 84,00 80,75 80,75 82,00 80,50 82,00 2,4 4,433 -0,004 0,13
Lyttelton Manor X4/X6 65,00 65,00 60,00 55,00 55,00 50,00 1,0 4,596 -0,073 0,95
Pretoria North 50,00 45,00 35,00 25,00 25,00 20,00 1,0 5,332 -0,255 0,97
Silvertondale X1 60,00 55,00 50,00 45,00 45,00 40,00 1,0 4,652 -0,104 0,97
Klerksoord 45,00 40,00 35,00 30,00 25,00 18,00 1,0 5,144 -0,233 0,96
Rosslyn 55,00 52,50 52,50 52,50 50,00 50,00 2,0 4,125 -0,023 0,84
Centurion 90,00 85,00 80,00 80,00 70,00 60,00 - 5,066 -0,098 0,88
Pretoria 62,32 60,31 56,28 52,69 48,81 45,07 1,9
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Polokwane
Lebowakgomo - - - - - - - - - -
Superbia 52,50 38,25 30,50 28,50 - - 3,5 - - -
Industria 60,00 46,00 43,50 32,00 - - 1,0 - - -
Ladine 65,00 47,50 43,00 31,00 - - 2,0 - - -
Futura - - 35,00 - - - 2,0 - - -
Laboria 45,00 45,00 33,75 35,00 50,00 - 2,8 - - -
Magna Via 67,50 66,25 60,00 50,00 - - 2,0 - - -
Seshego - - - - - - - - - -
Polokwane 59,44 48,27 41,50 34,29 - - 2,3
Mbombela
92

Mbombela East 62,50 57,13 56,88 51,25 - - 2,5 - - -

Mbombela West 51,25 57,00 46,75 47,50 45,00 - 2,8 - - -
Rocky's Drift 42,38 45,00 43,75 43,25 45,00 - 2,3 - - -
Riverside Park 90,75 76,88 81,25 72,75 55,00 65,00 2,5 5,071 -0,107 0,72
Mbombela 61,72 59,00 57,16 53,69 48,33 - 2,5
Durban
Springfield Park 84,29 80,00 74,21 73,33 70,50 70,50 1,9 4,680 -0,049 0,90
Mayville 68,60 66,20 64,80 65,00 60,00 58,33 4,0 4,461 -0,042 0,90
Phoenix 81,25 78,75 75,00 70,00 68,13 65,63 2,0 4,731 -0,060 0,99
Chris Hani Rd (North Coast/ 82,14 80,71 74,67 73,42 73,00 72,50 2,7 4,594 -0,036 0,84
Briardene)
Briardene Industrial Park 89,64 84,17 81,33 78,00 76,67 79,38 1,8 4,661 -0,036 0,76
Umgeni Rd/Stamford Hill 77,50 76,00 72,00 70,00 70,00 68,33 3,0 4,533 -0,034 0,93
Umbilo/Sydney Rd/Magwaza 71,00 70,00 69,17 67,40 66,00 65,00 3,0 4,401 -0,025 0,99
Maphalala St (Gale)
Jacobs 72,50 71,40 69,00 69,33 67,67 67,50 2,2 4,385 -0,019 0,90
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Mobeni 73,50 72,00 69,60 69,33 67,67 67,67 2,0 4,416 -0,023 0,92
Clairwood Logistics Park - - - 90,00 88,33 88,33 1,6 4,465 -0,037 0,97
Prospecton 76,00 76,00 72,17 69,33 68,20 67,50 2,0 4,539 -0,037 0,94
Ithala Industrial Estate 60,00 60,00 60,00 45,00 - - 4,0 - - -
Pinetown Central 71,43 69,17 66,14 65,07 63,83 61,86 2,9 4,465 -0,037 0,97
New Germany 70,00 70,00 67,50 67,50 68,10 67,60 2,8 4,298 -0,010 0,59
Mountain Ridge 67,50 65,00 61,25 60,00 56,25 52,50 4,3 4,575 -0,065 0,97
Isipingo 59,00 57,50 56,25 52,50 50,00 47,50 4,5 4,424 -0,060 0,98
Rossburgh/South Coast Rd 67,50 67,50 67,50 67,67 68,75 67,50 3,2 4,199 0,002 0,19
Edwin Swales Drive 77,33 74,00 72,33 72,50 70,00 70,00 2,5 4,470 -0,025 0,88
Glen Anil 83,33 79,00 77,00 75,00 73,00 71,67 1,8 4,620 -0,039 0,97
93

Felix Dlamini Rd (Brickfield) 73,33 73,33 70,00 67,50 67,50 62,50 3,7 4,537 -0,041 0,91
Verulam 62,50 62,50 57,50 55,00 50,00 45,00 5,5 4,667 -0,089 0,94
Canelands 65,00 65,00 62,50 61,67 60,00 57,50 3,0 4,367 -0,033 0,94
Tongaat 57,50 57,50 55,00 48,33 45,00 42,50 4,0 4,595 -0,091 0,95
New Westmead/Mahogany 74,00 73,70 71,00 69,50 69,50 66,60 2,4 4,461 -0,028 0,94
Westmead 76,67 75,00 73,92 73,33 71,25 68,83 2,0 4,487 -0,026 0,94
Alexander Park 73,33 71,67 70,00 68,33 66,67 65,00 2,0 4,472 -0,032 1,00
Surprise Farm 71,67 71,67 68,33 66,67 65,00 65,00 2,0 4,446 -0,031 0,93
Mariann Park/Southmead 75,00 70,00 66,67 60,00 60,00 60,00 2,7 4,650 -0,065 0,90
Queensmead Industria - - - - - - 1,0 - - -
Maxmead 72,50 71,25 69,50 68,25 67,00 65,00 2,5 4,441 -0,028 0,99
Ringroad Industrial Park 70,00 70,00 70,00 68,00 - - 1,0 - - -
Avoca/Red Hill/Northgate 78,00 77,00 77,00 75,60 75,60 77,50 2,0 4,372 -0,004 0,21
Falcon Park 65,00 65,00 60,00 - - - 3,5 - - -
Riverhorse Valley Business Estate 94,00 94,00 89,00 88,00 86,00 85,00 1,6 4,710 -0,030 0,93
Mount Edgecombe 88,75 86,25 85,00 83,33 83,00 78,33 1,8 4,643 -0,029 0,91
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Umbogintwini/Southgate 75,25 72,50 72,50 72,50 70,88 70,00 1,3 4,399 -0,016 0,84
Southgate Industrial Park 73,00 70,00 71,67 71,67 70,00 70,00 1,0 4,321 -0,008 0,39
Umgeni Park 75,00 75,00 73,33 71,67 70,00 69,33 2,0 4,457 -0,024 0,97
Hammarsdale 58,75 58,75 52,00 52,00 50,60 58,75 4,2 4,136 -0,017 0,11
Cato Ridge 64,50 64,50 62,00 59,60 56,60 61,00 3,2 4,318 -0,027 0,60
Camperdown 58,33 58,33 55,00 56,67 53,33 40,00 3,3 4,560 -0,080 0,60
Ballito 83,33 81,67 81,67 80,00 76,67 75,00 3,0 4,584 -0,028 0,92
Dube Tradeport - - 83,33 78,33 76,67 - 2,7 - - -
Kingsburgh 72,50 72,50 70,00 70,00 70,00 70,00 1,5 4,339 -0,011 0,68
Cornubia 92,50 90,00 83,25 82,00 79,50 78,25 2,5 4,774 -0,046 0,93
Durban 75,54 73,78 71,05 69,77 68,80 68,13 2,6
94

Ladysmith
Ezakheni/Pieters - - - - - - - - - -
Danskraal 25,00 20,00 15,00 10,00 8,00 6,00 7,00 5,405 -0,392 1,00
Nambiti 25,00 20,00 15,00 10,00 8,00 6,00 7,00 5,405 -0,392 1,00
Colenso - - - - - - - - - -
Ladysmith 25,00 20,00 15,00 10,00 8,00 6,00 7,00
Cape Town
Viking Place 70,00 60,00 50,00 45,00 45,00 - - - - -
Glosderry 95,00 89,00 80,00 - - - 1,5 - - -
Paarden Eiland/Metro 78,00 77,65 74,67 70,00 63,00 61,00 1,0 4,794 -0,073 0,94
Montague Gardens 74,42 72,75 70,83 68,10 67,86 65,83 2,6 4,489 -0,033 0,98
Marconi Beam 72,22 68,13 66,88 66,29 62,80 63,60 2,1 4,446 -0,034 0,88
Killarney Gardens 61,86 57,57 55,00 52,71 52,25 51,67 3,6 4,354 -0,047 0,90
Richmond Park - - 88,33 83,33 77,50 77,50 3,0 - - -
Racing Park 45,00 45,00 45,00 40,00 - - 2,0 - - -
Atlantis 45,00 40,00 42,50 39,00 39,00 38,00 2,0 3,985 -0,039 0,72
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Woodstock/Salt River/Observatory 73,33 67,50 62,50 - - - 3,0 - - -

Athlone 1 & 2 - - - - - - - - - -
Lansdowne Nerissa - - - - - - - - - -
Sand Industria - - - - - - - - - -
Ottery Hillstar 75,00 60,00 55,00 - - - 3,0 - - -
Ottery Sunset 75,00 60,00 55,00 - - - 3,0 - - -
Diep River 91,00 - - - - - 3,0 - - -
Elfindale 85,00 - - - - - 3,5 - - -
Monwood/Philippi - - - - - - - - - -
Retreat/Steenberg 95,00 - - - - 85,00 - - - -
Capricorn Park 78,75 - - - - - 2,0 - - -
95

Maitland 73,07 69,44 67,67 62,14 56,40 55,00 2,3 4,751 -0,081 0,97
Ndabeni 80,13 77,20 77,00 72,50 - - 1,8 - - -
Epping 1 & 2 67,86 63,57 62,86 63,57 63,75 60,00 2,5 4,315 -0,022 0,63
WP Park 68,33 61,67 60,00 60,00 52,50 50,00 1,0 4,636 -0,077 0,91
Elsies River (excl. Central Park) 49,33 49,33 47,67 43,67 43,00 - 1,5 - - -
Parow Beaconvale 56,67 55,00 50,00 48,33 48,33 - 3,0 - - -
Tygerberg Business Park 65,00 62,50 62,50 60,00 57,50 - - - - -
Parow Industria 67,00 65,83 61,67 61,00 60,00 60,00 1,7 4,371 -0,032 0,87
Parow East 60,00 60,00 56,67 55,00 52,50 - - - - -
Bellville Oakdale 50,00 50,00 50,00 50,00 45,00 - - - - -
Bellville Stikland/Kaymor 68,33 65,83 65,83 64,00 - - 1,5 - - -
Bellville Triangle 58,25 57,20 56,25 51,67 50,00 50,00 1,0 4,340 -0,048 0,94
Bellville South/Sacks Circle 56,67 55,00 53,75 51,25 50,00 50,00 1,7 4,235 -0,037 0,96
Kraaifontein 57,50 55,00 50,00 40,00 40,00 - - - - -
Brackenfell Industria - 68,75 68,33 66,25 - - 3,0 - - -
Everite Brackenfell 65,00 62,50 55,00 55,00 - - 1,0 - - -
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Kuils River 63,75 62,50 57,50 57,50 - - 1,3 - - -

Blackheath 56,40 55,60 54,50 54,17 50,00 50,00 1,8 4,236 -0,035 0,88
Saxenburg Industrial Park 67,00 66,00 64,00 64,00 61,00 60,00 1,7 4,372 -0,030 0,94
Okavango 58,33 56,67 51,67 51,67 - - 1,0 - - -
Brackengate/Icon Business Park 80,00 80,00 77,50 75,00 - - 1,0 - - -
Paarl - - - - - 55,00 1,0 - - -
Wellington - - - - - - - - - -
Contermanskloof - - - - - - - - - -
Rivergate 77,50 70,00 70,00 70,00 70,00 70,00 3,0 4,405 -0,019 0,41
Airport Ind (north of sewerage farm) 76,67 75,00 72,50 80,60 70,00 70,00 2,5 4,453 -0,020 0,26
Airport Ind (west of Borcherds 76,67 75,00 72,50 76,25 70,00 70,00 2,0 4,462 -0,023 0,60
96

Quarry)
Airport Ind (east of Borcherds 85,00 85,75 82,50 80,00 80,00 80,00 2,0 4,562 -0,021 0,84
Quarry)
King Air Industrial Park 95,00 95,00 95,00 95,00 95,00 95,00 - 4,554 0,000 -
Durbanville Industrial Park 85,00 80,00 75,00 75,00 75,00 - 2,0 - - -
Northgate Industrial Park - - - - - - - - - -
Cape Town 69,93 66,48 64,11 63,19 59,21 63,00 2,1
Helderberg
The Interchange - - - - - - - - - -
Helderberg Industrial Park/ - - - - - - - - - -
Broadlands
Gants - - - - - - - - - -
Somerset Business Park - - - - - - - - - -
Georges Park/Onverwacht - - - - - - - - - -
Mansfield - - - - - - - - - -
Firgrove Industrial Estate 95,00 90,00 90,00 - - - 2,0 - - -
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Strand Halt - - - - - - - - - -
Asla Park - - - - - - - - - -
Helderberg - - - - - - -
Stellenbosch
Plankenbrug - - - - - - - - - -
Devon Valley - - - - - - - - - -
Tenantville - - - - - - - - - -
Klapmuts - - - - - - - - - -
Stellenbosch - - - - - - -
Gqeberha
97

Deal Party 46,25 40,00 40,00 40,00 36,67 35,83 4,3 4,106 -0,058 0,82
North End 45,00 42,50 41,67 38,33 35,00 32,50 4,1 4,304 -0,087 0,97
Korsten/Neave/Sidwell/Sydenham 45,63 41,67 38,50 38,50 35,83 35,00 3,9 4,159 -0,067 0,92
South End Walmer 45,00 42,50 42,50 40,00 40,00 - 2,0 - - -
Kariega: Volkswagen area/NMBLP 35,00 35,00 34,33 35,00 36,67 35,00 2,8 3,513 0,006 0,16
Kariega: Hella/Kruisrivier 27,50 27,50 28,17 27,50 26,83 26,25 5,0 3,400 -0,013 0,53
Struandale 45,00 41,67 41,67 40,00 39,00 36,25 2,3 4,070 -0,050 0,93
Markman Township 36,25 36,25 33,33 33,33 31,67 29,33 2,7 3,912 -0,055 0,91
Perseverance 38,75 36,25 35,00 35,00 35,00 32,50 2,8 3,838 -0,037 0,82
Walmer 61,67 60,00 53,33 - - - 2,3 - - -
Greenbushes Industrial Park 68,75 62,50 60,83 56,67 55,00 - 1,7 - - -
Greenbushes (outside industrial park) 60,00 60,00 52,50 52,50 - - 2,0 - - -
Fairview 82,50 82,50 75,00 75,00 75,00 75,00 2,3 4,562 -0,029 0,68
Coega SDZ - 60,00 60,00 61,67 61,67 56,67 2,3 - - -
Gqeberha 49,56 46,18 45,53 43,14 39,66 37,52 3,0
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

East London
Arcadia 52,00 50,00 48,00 45,00 - - 2,0 - - -
Gately/Woodbrook 45,00 45,00 40,00 40,00 38,00 - 3,0 - - -
Wilsonia 45,00 45,00 40,00 40,00 38,00 38,00 2,0 4,089 -0,051 0,86
Braelyn 45,00 45,00 40,00 40,00 - - 3,0 - - -
Northend 45,00 40,00 40,00 - - - 3,0 - - -
Chiselhurst 50,00 48,00 45,00 45,00 - - 2,0 - - -
Meisies Halt 68,00 65,00 60,00 55,00 - - 2,0 - - -
Beacon Bay Industrial - - - - - - - - - -
IDZ - - - - - - - - - -
West Bank Industrial Area 50,00 47,00 45,00 43,00 42,00 - 2,0 - - -
98

East London 50,00 48,13 44,75 44,00 39,33 - 2,4

Bloemfontein
Hilton 51,00 48,67 44,00 - - - - - - -
East End 59,00 58,33 50,33 43,00 - - - - - -
Harvey Road 43,67 37,33 36,00 33,00 27,00 - - - - -
Old Industrial 52,00 49,00 46,00 38,50 25,00 - - - - -
Hamilton: Mill St 35,75 33,00 32,33 31,50 28,50 - - - - -
Hamilton: G Lubbe St 39,67 38,33 31,50 30,50 - - - - - -
Estoire 50,33 56,00 51,00 46,00 - - - - - -
Quaggafontein 70,00 69,00 69,00 69,00 - - - - - -
Bloemfontein 48,75 47,21 44,83 41,64 - - -
George
George Central - - - - - - - - - -
Tamsui Industria - - - - - - - - - -
Pacaltsdorp Industria - - - - - - - - - -
George - - - - - - -
Industrial rentals and vacancies
 Table 7.2 (continued)
Mean prime industrial market rentals as in quarter 2024:2
(R/m² p.m.; gross lease; excl. VAT)
Area size leased in m²
Vacancy a b r²
250 500 1.000 2.500 5.000 10.000
Rode’s Report 2024:2

Pietermaritzburg
Willowton - 48,00 45,00 45,00 40,00 38,00 2,0 - - -
Mkondeni/Shortts Retreat - 45,00 45,00 40,00 38,00 35,00 3,0 - - -
Camps Drift - 55,00 50,00 45,00 - - 5,0 - - -
Pietermaritzburg Central 70,00 70,00 65,00 60,00 - - 2,0 - - -
Rosedale/Allandale - - - - - - - - - -
Howick - - - - - - - - - -
Pietermaritzburg - 54,50 51,25 47,50 39,00 36,50 3,0
Lower Umfolozi
Empangeni - - - - - - - - - -
Richards Bay (Alton) - - - - - - - - - -
99

Richards Bay CBD (Dollar Drive) - - - - - - - - - -

Lower Umfolozi - - - - - - -
Windhoek
North 65,00 55,00 50,00 45,00 40,00 - 1,0 - - -
Lafrenz 65,00 55,00 50,00 45,00 40,00 - 1,0 - - -
South 65,00 55,00 50,00 45,00 40,00 - 1,0 - - -
Prosperita 60,00 55,00 50,00 45,00 40,00 - 1,0 - - -
Windhoek 63,75 55,00 50,00 45,00 40,00 - 1,0
Industrial rentals and vacancies
 Table 7.3
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Central Witwatersrand
Rode’s Report 2024:2

Cambridge Park 5,75 5,75 5,75 5,75 9,30 8,25 PVS,SHP

Wynberg Proper 5,75 1,89 3,68 4,12 7,67 8,60 AP,KA,PVS,SHP,WP
Strijdom Park 4,05 4,10 3,13 2,77 4,43 7,24 AP,GI,OSO,PVS,SHP,WP
Kya Sand West 4,15 3,92 3,88 4,10 6,22 6,56 AP,AV,CPS,OSO,PVS,SHP
Kya Sand East 3,99 7,10 6,96 7,62 3,32 4,25 AP,AV,CPS,OSO,MR,PVS,SHP
Lanseria Corporate Estate 3,65 6,89 8,47 9,36 10,24 10,24 AP,AV,CPS,MR,PVS,SHP
Cosmo Business Park 3,33 2,90 2,89 4,09 3,72 3,34 AP,CPS,PVS,SHP
Mostyn Park 5,98 1,74 1,66 0,52 0,75 1,31 AP,BLA,CPS,PVS,SHP
Clayville/Olifantsfontein 6,38 6,04 7,47 6,66 7,08 7,37 AP,CPS,GI,PVS,SHP
Chloorkop 7,21 7,91 6,52 4,81 3,55 2,06 AP,CPS,KA,PPR,RO,PVS,SHP,ZZ
100

Amalgam 3,75 3,75 3,59 2,04 2,22 3,06 AP,GB,PVS,RO

Crown Mines 6,63 6,68 6,61 5,41 4,57 4,76 AP,GB,MR,PVS,RO
Industria 6,93 8,81 9,42 10,41 12,73 12,26 AP,PVS,
Booysens/Booysens Reserve/Ophirton 4,24 4,25 3,16 2,55 1,90 3,40 AP,GB,PVS,RO
Village Main/Village Deep/New Centre 2,78 4,18 2,94 2,38 4,08 3,44 AP,PVS,RO
Benrose 2,93 2,93 3,72 3,72 3,72 3,72 AP,MR,PVS,RO
Steeledale/Electron/Tulisa Park 3,64 4,48 4,19 4,37 5,10 5,18 AP,MR,PVS,RO
Aeroton 3,72 3,72 6,89 6,59 6,59 6,29 AP,BLA,GB,GI,PVS,RO
Devland 3,50 1,55 2,50 4,05 4,00 4,05 AP,PVS
Nancefield - - - - - - AP
Cleveland/Heriotdale 2,04 2,04 2,97 2,96 2,19 1,84 AP,PVS,RO,RNP
Newlands/Martindale 1,75 1,80 6,75 6,75 9,27 11,78 AP,PVS
Kew/Wynberg East 4,41 4,89 5,74 5,46 7,10 5,05 AP,KA,PVS,MR,WP
Bramley View/Lombardy West 2,83 2,85 4,25 5,20 7,70 6,65 AP,PVS
Marlboro South (Alexandra) - - - - - - AP,PVS
Halfway House: hi-tech strip 7,57 7,18 8,27 6,57 3,77 3,80 AP,CPS,CR,GB,GI,OSO,PVS,RO,SHP,WP
Halfway House: Richards Drive 6,86 7,34 5,29 7,75 4,91 4,90 AP,CPS,GB,GI,OSO,PVS,RO,SHP,WP
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Randjespark 7,81 7,51 7,55 6,74 6,45 7,00 AP,AV,CPS,GB,MR,OSO,PVS,SHP
Rode’s Report 2024:2

Corporate Park (Midrand) 7,80 7,26 6,65 7,89 7,57 7,48 AP,CPS,GB,MR,OSO,PVS,RO,SHP
Commercia 2,34 2,06 3,57 7,42 7,26 2,45 AP,CPS,PVS,SHP
Kramerville/Eastgate Ext12 & Ext13 5,08 5,89 7,29 8,44 8,96 9,15 AP,CPS,MR,OSO,PVS,SHP
Linbro Park 7,67 7,45 3,88 4,64 4,44 4,05 AP,AV,CPS,GB,GI,KA,ME,PPR,PVS,RO,SHP,
WP
Longlake 9,18 7,95 7,92 8,57 8,50 8,10 AP,AV,BLA,CPS,GB,ME,PPR,PVS,RO,SHP,
WP
Wesco Park/Eastgate Ext3, Ext11, Ext6, 5,32 5,32 5,83 6,30 5,62 - CPS,PVS,SHP
Ext8/Malboro North (New)
City Deep 3,81 3,74 7,91 0,87 1,31 1,33 AP,GI,MR,PVS,RO
North Riding/Hoogland 4,63 4,85 4,70 4,17 4,60 0,75 AP,CPS,PVS,SHP
101

Samrand Centurion 6,92 8,97 9,91 8,23 3,57 7,35 AP,CPS,GB,GI,MR,OSO,PVS,RO,SHP

Barbeque Downs 6,94 6,11 3,81 0,86 1,25 1,00 AP,CPS,GB,KA,OSO,PVS,SHP,WP
Selby Ext 12/13/15/19/20/24/City 1,94 5,32 4,12 3,13 5,48 4,99 AP,PVS,RO
West
Selby Ext 5/10/14/18 1,35 3,13 2,38 2,38 4,37 3,56 AP,PVS,RO
Selby Ext 11 0,28 4,37 3,35 3,36 5,02 4,52 AP,PVS,RO
Selby Ext 3/4/6 2,41 2,87 2,05 2,06 3,56 3,29 AP,PVS,RO
Denver (Old) 5,57 5,56 7,87 8,21 8,07 7,60 AP,PVS,RO
Denver (New) 0,71 0,71 0,75 1,65 1,70 1,18 AP,BLA,PVS,RO
Kyalami Business Park 5,81 6,12 5,79 6,59 5,95 7,19 AP,CR,GB,GI,MR,OSO,PVS,SHP,WP
Reuven 0,17 2,23 1,43 2,97 2,35 2,56 AP,GB,PVS,RO
Selby (Old)/Selby Ext2/Park Central 2,62 2,18 1,73 1,41 3,78 2,15 AP,BLA,PVS,RO
Robertsham 4,91 5,90 6,22 4,98 5,93 4,18 AP,GB,PVS,RO
Fordsburg/Newtown 6,47 6,48 6,47 4,18 5,31 3,80 AP,GB,PVS
Waterfall 11,99 10,07 8,87 10,07 9,44 6,98 AP,AV,CPS,CR,GB,ME,MR,PVS,SHP
Lords View 8,38 7,42 6,23 8,46 8,21 7,45 AP,AV,CPS,ME,PVS,SHP,RO
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
West Rand
Rode’s Report 2024:2

Lea Glen 4,31 4,30 6,23 7,42 9,66 12,27 AP,CPS,PVS,SHP

Honeydew X19/20/21/22 4,73 4,72 3,50 2,58 4,36 6,08 AP,OSO,PVS,SHP
Stormill 6,53 7,00 5,66 4,88 5,47 4,14 AP,CPS,GI,PVS,SHP
Chamdor 6,00 3,48 2,55 0,05 1,40 1,40 AP,PVS
Factoria 11,92 9,93 2,78 0,66 4,16 0,60 AP,CPS,PVS
Krugersdorp: Delporton - 0,48 - - - - AP,PVS
Randfontein: Aureus 11,85 - - - - - AP,PVS
Boltonia - - - - - - AP,PVS
Roodepoort: Technikon/Manufacta - - - - - - AP,PVS
Industria North 3,23 2,33 4,08 4,10 6,25 5,10 AP,CPS,PVS
Robertville 5,40 4,09 4,46 4,44 3,17 6,63 AP,BLA,CPS,GI,PVS,SHP,SS
102

Laserpark 1,97 1,97 2,28 0,72 3,53 3,85 AP,OSO,PVS,SHP,WP

East Rand
Elandsfontein 4,80 2,77 3,27 4,23 6,93 7,79 AP,AV,BLA,CPS,KA,ME,MR,PPR,RO,PVS,
SHP,SS
Tunney/Greenhills 5,16 5,24 5,32 4,79 5,24 6,23 AP,AV,BLA,CPS,KA,ME,MR,PPR,RO,PVS,
SHP,SS
Henville 5,83 5,78 6,41 7,31 8,80 9,20 AP,CPS,ME,PPR,PVS,RO,SHP
Hughes 5,76 6,35 6,01 5,38 5,99 5,68 AP,GB,ME,MR,PPR,PVS,RO,SS
Bartletts 3,77 5,33 4,66 5,57 5,59 5,59 AP,ME,MR,PPR,PVS,SS
Lilianton - - 1,00 1,00 0,50 3,00 MR,PVS
Comet - - - - - - MR,PVS
Meadowbrook/Wilbart 3,33 3,29 3,29 3,73 3,92 4,75 AP,AV,CPS,KA,ME,MR,PPR,PVS,RO,SHP,SS
Sunnyrock 4,38 4,07 3,33 3,96 4,68 4,72 AP,CPS,ME,MR,PPR,PVS,RO,SHP,SS
Rustivia/Activia Park 4,69 4,18 4,96 6,42 7,91 9,13 CPS,ME,PPR,PVS,RO,SHP,SS
Eastleigh 4,46 6,24 8,06 8,03 9,01 7,46 AP,CPS,KA,ME,MR,PPR,PVS,RO,SHP,SS
Sebenza Ext 14 4,46 5,51 5,11 5,18 5,52 5,03 CPS,ME,MR,KA,PPR,PVS,SHP,SS
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Spartan Ext 16 (Sebenza Link) + Ext 7,45 6,27 5,41 5,30 5,33 6,26 CPS,GB,ME,MR,PPR,PVS,SHP,SS
Rode’s Report 2024:2

1/3/7
Isando 5,14 5,19 5,69 5,31 4,45 5,06 AP,AV,CPS,CR,GB,KA,ME,MR,OSO,PPR,
PVS,RO,SHP,SS
Isando 3 5,48 5,48 4,79 3,37 4,55 4,59 AP,CR,GB,ME,MR,OSO,PPR,PVS,RO,SHP,
SS
Jet Park 4,36 4,37 5,06 4,57 5,91 7,28 AP,BLA,CPS,GB,KA,ME,MR,OSO,PPR,PVS,
RO,SHP,SS
Alrode & Xs 6,49 4,63 4,30 7,10 7,29 8,86 AP,CPS,GI,MR,PVS,RO,SHP,SS
Alrode South 4,66 2,89 4,51 4,90 5,96 6,72 AP,CPS,MR,PVS,SHP,SS
Alberton 8,37 6,64 6,70 7,16 7,00 7,14 AP,CPS,MR,PVS,RO,SS
Aeroport/Spartan Ext 2 5,15 6,95 8,56 8,86 8,87 2,32 AP,CPS,ME,PPR,PVS,RO,SS
103

Delville 4,51 4,51 2,19 2,19 3,19 2,39 AP,MR,PVS,RO

Roodekop 4,13 3,46 4,73 6,19 7,70 7,74 AP,MR,PPR,PVS,RO,SHP
Wadeville: Industrial zoning 4,69 6,17 5,68 5,90 6,85 6,97 AP,CPS,GI,KA,PPR,PVS,RO,SHP,SS
Route 24/Meadowdale 6,28 8,31 8,80 7,90 7,90 3,71 AP,CPS,ME,MR,PPR,PVS,RO,SS
Germiston S/Industries E 8,10 8,10 8,26 9,48 11,33 11,46 AP,AV,CPS,MR,PPR,PVS,RO,SS
Driehoek/Industries W 6,90 6,88 5,82 4,72 5,44 5,63 GI,CPS,MR,PPR,PVS,RO,SS
Knights 5,46 5,46 5,31 3,58 3,58 4,34 AP,PPR,PVS,RO
Spartan Proper 6,07 5,57 5,69 4,32 4,10 4,61 AP,CPS,GB,ME,PPR,PVS,RO,SHP,SS
Founders View 7,71 7,71 8,14 8,11 9,01 9,22 AP,CPS,GB,ME,PPR,PVS,RO,SHP,SS
Longmeadow 6,03 5,98 5,44 6,63 6,37 6,45 AP,AV,CPS,GB,KA,ME,MR,PPR,PVS,RO,
SHP,SS,WP
Pomona/Kempton Park 6,88 6,88 7,01 5,39 5,98 6,75 AP,AV,BLA,CPS,GB,ME,MR,PPR,PVS,RO,
SHP,SS
Gosforth Park 5,11 5,11 5,11 5,18 5,54 4,68 AP,AV,BLA,CPS,GI,ME,MR,PPR,PVS,RO,
SHP,SS
S&J Industrial Estate 6,34 7,28 6,85 5,66 5,89 6,61 AP,AV,BLA,CPS,ME,MR,OSO,PPR,PVS,RO,
Industrial rentals and vacancies

SHP
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Far East Rand
Rode’s Report 2024:2

Boksburg North & East 4,01 3,86 2,96 3,86 6,05 8,27 AP,CPS,MR,PVS,RO,RNP,SHP
Benoni South 3,43 3,40 3,36 3,82 3,00 3,00 AP,MR,PVS,RO,SHP,SS
New Era/Vulcania 1,56 5,41 5,03 4,94 6,30 6,66 AP,BLA,MR,PVS,RO
Nuffield 1,93 2,49 4,32 2,79 2,79 1,84 AP,PVS,RO
Fulcrum 4,05 4,05 2,45 1,40 3,90 3,90 AP,PVS
Apex 3,92 3,41 2,59 1,96 2,20 1,80 AP,CPS,MR,PVS,RO,SS
Labore Brakpan 0,20 0,20 4,15 1,55 4,05 3,50 AP,PVS
Morehill Ext 8 Benoni 5,87 5,79 5,51 4,25 1,94 1,94 AP,CPS,MR,PVS,RO,SS
Pretoria
Charlotte Maxeke - - - - - - AP
104

Pretoria Industrial Township - - - - - - AP

Koedoespoort - - - - 0,00 7,00 AP,HN
Waltloo/Despatch 7,07 2,36 6,24 2,50 5,00 10,00 AP,GB,HN
Silverton/Silvertondale 8,90 4,33 2,17 3,77 1,41 4,08 ABA,AP,GB,HN
Samcor Park 2,50 2,50 0,00 0,00 2,50 5,00 AP,GB
Sunderland Ridge - 2,50 - - - - AP,GB
Hermanstad - - - - - - AP
Kirkney - - - - - - AP
Hennopspark X15 & X7 5,00 2,50 2,50 - - - AP,GB
Gateway 7,19 5,10 6,12 7,50 5,59 5,45 ABA,AP,GB,HN,MAS
Rooihuiskraal - 2,50 - - - - AP,GB
Louwlardia 6,00 2,59 2,59 4,69 6,18 11,33 AP,BLA,CPS,GB,MR,SHP
Lyttelton Manor X4/X6 - - - - - - AP
Pretoria North - - - - - - AP
Silvertondale X1 - - - - - - AP
Klerksoord - - - - - - AP
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Rosslyn 5,00 7,50 7,50 7,50 10,00 15,00 AP,GB
Rode’s Report 2024:2

Centurion - - - - - - AP
Polokwane
Lebowakgomo - - - - - -
Superbia 12,50 3,25 5,50 1,50 - - MO,TG
Industria 5,00 4,00 6,50 - - - MO,TG
Ladine 0,00 2,50 7,00 - - - MO,TG
Futura - - - - - - MO
Laboria - 10,80 1,25 5,00 - - ES,MO,NET,TG
Magna Via 7,50 1,25 0,00 - - - ES,MO,NET,TG
Seshego - - - - - -
105

Mbombela
Mbombela East 4,33 4,11 9,74 6,50 - - PG,KEL,MPV,ORI
Mbombela West 2,17 6,93 3,90 4,33 0,00 - PG,KEL,MPV,ORI
Rocky's Drift 1,52 0,00 2,17 3,03 0,00 - PG,KEL,MPV,ORI
Riverside Park 9,09 1,08 6,50 3,90 0,00 - PG,KEL,MPV,ORI
Durban
Springfield Park 9,04 5,98 5,81 7,45 8,44 8,44 AWP,BON,MX,PC,SA,SPS,ZZ
Mayville 9,16 7,33 8,38 10,80 7,07 8,50 AWP,MX,SA,SPS,ZZ
Phoenix 4,15 4,15 5,00 3,54 4,10 3,70 AWP,SA,SPS,ZZ
Chris Hani Rd (North Coast/Briardene) 11,29 11,16 6,10 5,63 5,77 8,29 AWP,BON,GI,PC,SA,SPS,ZZ
Briardene Industrial Park 11,37 9,32 8,98 7,30 8,08 8,36 AWP,BON,GI,PC,SA,SPS,ZZ
Umgeni Rd/Stamford Hill 11,62 9,70 9,27 8,66 10,80 12,47 AWP,MX,PC,SA,ZZ
Umbilo/Sydney Rd/Magwaza 5,83 6,45 9,32 9,95 11,58 13,42 AWP,MX,PC,SA,SPS,ZZ
Maphalala St (Gale)
Jacobs 5,59 5,57 4,20 4,19 2,05 2,50 AWP,MX,PC,SPS,ZZ
Mobeni 4,39 4,86 3,26 4,19 2,05 2,05 AWP,MX,PC,SPS,ZZ
Industrial rentals and vacancies

Clairwood Logistics Park - - - 7,07 8,50 12,13 AWP,BLA,MX,PC,SPS,ZZ

Prospecton 8,00 8,00 6,47 10,29 11,70 2,50 AWP,MX,PC,SF,SPS,ZZ
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Ithala Industrial Estate - - - 15,00 - - BLA,PC
Rode’s Report 2024:2

Pinetown Central 5,15 6,72 7,32 8,78 11,19 10,79 AWP,BLA,FUN,GI,PC,SA,SPS,ZZ

New Germany 3,16 3,16 2,24 2,24 1,85 2,24 AWP,FUN,PC,SA,SPS,ZZ
Mountain Ridge 7,50 5,00 6,25 5,00 6,25 7,50 SA,ZZ
Isipingo 9,00 7,50 6,25 7,50 10,00 12,50 AWP,GI,SA
Rossburgh/South Coast Rd 7,50 7,50 5,59 2,05 2,17 2,50 AWP,MX,PC,SPS,ZZ
Edwin Swales Drive 6,13 6,48 8,81 2,50 - 0,00 AWP,MX,PC,ZZ
Glen Anil 12,47 8,60 7,48 7,07 6,78 4,71 AWP,BON,GI,PC,SPS,ZZ
Felix Dlamini Rd (Brickfield) 2,36 2,36 0,00 2,50 2,50 2,50 AWP,SPS,ZZ
Verulam 2,50 2,50 2,50 5,00 5,00 0,00 AWP,ZZ
Canelands 0,00 0,00 2,50 4,71 5,00 12,50 AWP,PC,SPS
Tongaat 2,50 2,50 0,00 2,36 4,08 2,50 AWP,PC,ZZ
106

New Westmead/Mahogany 6,63 6,62 6,63 5,57 8,43 6,65 AWP,GI,PC,SA,SPS,ZZ

Westmead 6,87 5,00 6,06 6,24 6,41 7,86 AWP,FUN,PC,SA,SPS,ZZ
Alexander Park 2,36 2,36 4,08 4,71 6,24 10,00 FUN,PC,ZZ
Surprise Farm 2,36 2,36 4,71 6,24 8,16 10,00 FUN,PC,ZZ
Mariann Park/Southmead 5,00 8,16 6,24 0,00 7,07 7,07 AWP,PC,ZZ
Queensmead Industria - - - - - - AWP
Maxmead 2,50 2,17 3,64 4,09 5,43 7,07 AWP,FUN,PC,ZZ
Ringroad Industrial Park - - - - - - PC
Avoca/Red Hill/Northgate 9,27 7,48 8,12 7,71 10,46 10,90 AWP,BON,PC,SPS,ZZ
Falcon Park 0,00 0,00 5,00 - - - BLA,PC,ZZ
Riverhorse Valley Business Estate 8,00 8,00 8,00 6,78 8,00 7,07 AWP,BLA,BON,PC,SPS,ZZ
Mount Edgecombe 12,93 10,83 4,08 4,71 10,77 4,71 AWP,GI,PC,SPS,ZZ
Umbogintwini/Southgate 13,33 14,36 10,31 5,59 3,85 3,54 AWP,PC,SA,SF,SPS
Southgate Industrial Park 7,38 9,35 6,24 6,24 4,08 0,00 AWP,PC,SF,SPS
Umgeni Park 4,08 4,08 2,36 2,36 0,00 0,94 AWP,PC,SPS,ZZ
Hammarsdale 8,20 8,20 8,72 10,30 8,09 11,92 AWP,PC,SH,SPS,ZZ
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Cato Ridge 2,87 2,87 4,95 9,09 8,73 13,93 AWP,PC,SH,SPS,ZZ
Rode’s Report 2024:2

Camperdown 6,24 6,24 7,07 8,50 10,27 0,00 AWP,SPS,ZZ

Ballito 14,34 12,47 6,24 7,07 6,24 5,00 AWP,SPS,ZZ
Dube Tradeport - - 11,79 4,71 6,24 - AWP,SPS,ZZ
Kingsburgh 7,50 7,50 5,00 0,00 0,00 - AWP,SPS,
Cornubia 13,46 12,75 7,69 5,87 6,18 7,36 AWP,BLA,PC,SPS,ZZ
Ladysmith
Ezakheni/Pieters - - - - - -
Danskraal - - - - - - DE
Nambiti - - - - - - DE
Colenso - - - - - -
107

Cape Town
Viking Place - - - - - - DN
Glosderry 0,00 1,00 0,00 - - - AN,COR
Paarden Eiland/Metro 7,44 7,50 8,87 10,69 2,16 4,32 AN,AP,AX,DD,JB,RIO,SCM,VP,WPM
Montague Gardens 5,59 8,26 10,37 9,25 13,59 11,33 AN,AP,APG,AX,BLA,CPS,DN,JB,RIO,SAF,
SCM,VP,WPM
Marconi Beam 5,33 6,09 7,47 9,18 12,86 11,57 AP,APG,AX,BLA,CPS,DN,JB,RIO,SAF,VP
Killarney Gardens 3,87 4,44 3,78 4,46 2,28 2,36 AN,AP,AX,DN,RIO,VP
Richmond Park - - 17,00 16,50 17,50 17,50 AN,AP,BLA,VP
Racing Park 0,00 5,00 5,00 0,00 - - AN,AP
Atlantis 0,00 0,00 2,50 1,00 1,00 0,00 AN,AP
Woodstock/Salt River/Observatory 10,27 7,50 2,50 - - - AN,CA,WD
Athlone 1 & 2 - - - - - -
Lansdowne Nerissa - - - - - -
Sand Industria - - - - - -
Ottery Hillstar - - - - - - COR
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Ottery Sunset - - - - - - COR
Rode’s Report 2024:2

Diep River 8,49 - - - - - AN,COR,SAF

Elfindale 0,00 - - - - - COR,SAF
Monwood/Philippi - - - - - - BLA
Retreat/Steenberg - - - - - - AN
Capricorn Park 1,25 - - - - - AN,SAF
Maitland 5,23 8,96 8,83 9,20 12,24 5,00 AN,AP,AX,COR,CPS,DD,DN,JB,WPM
Ndabeni 5,13 4,83 6,28 7,50 - - AN,AP,AX,JB
Epping 1 & 2 3,64 5,15 6,47 7,42 7,40 5,00 AN,AP,APG,DN,GAM,JB,VP,WPM
WP Park 6,24 6,24 7,07 7,07 2,50 - AN,DN,VP
Elsies River (excl. Central Park) 4,19 4,19 2,05 5,79 7,00 - AN,AP,WPM
Parow Beaconvale 4,71 4,08 4,08 2,36 2,36 - AP,DN,VP
108

Tygerberg Business Park 5,00 7,50 7,50 5,00 7,50 - DN,VP

Parow Industria 10,30 10,57 7,99 8,60 9,49 0,00 AN,AP,APG,DN,JB,VP,WPM
Parow East 7,07 7,07 6,24 4,08 7,50 - AP,DN,VP
Bellville Oakdale - - - - - - DN
Bellville Stikland/Kaymor 9,43 8,86 9,75 9,70 - - AN,AP,APG,CPS,DN,WD
Bellville Triangle 5,40 3,71 4,15 2,36 4,08 - AN,AP,CPS,DN,WD
Bellville South/Sacks Circle 6,24 3,54 4,15 4,15 4,08 - AN,AP,CPS,DN,WD
Kraaifontein 7,50 5,00 - - - - DN,WD
Brackenfell Industria - 12,44 15,46 17,09 - - DN,JB,WD,WPM
Everite Brackenfell 0,00 2,50 5,00 5,00 - - AN,DN
Kuils River 5,45 4,33 4,33 4,33 - - AN,AP,CPS,DN
Blackheath 4,22 3,38 4,56 6,72 0,00 0,00 AN,AP,COR,CPS,DN,JB,WPM
Saxenburg Industrial Park 1,41 1,41 1,41 1,41 1,00 0,00 AN,AP,CPS
Okavango 6,24 6,24 6,24 6,24 - - AN,DN,WPM
Brackengate/Icon Business Park 5,00 5,00 7,50 5,00 - - AN,DN,WPM
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Paarl - - - - - - DD
Rode’s Report 2024:2

Wellington - - - - - -
Contermanskloof - - - - - -
Rivergate 5,59 3,54 3,54 0,00 - - AN,AP,VP
Airport Ind (north of sewerage farm) 6,24 4,08 2,50 10,46 0,00 0,00 AN,AP,APG,JB,VP
Airport Ind (west of Borcherds Quarry) 6,24 4,08 2,50 6,50 0,00 0,00 AP,APG,JB,VP
Airport Ind (east of Borcherds 8,16 8,90 7,50 8,16 10,00 10,00 AN,AP,APG,VP
Quarry)
King Air Industrial Park - - - 4,08 - - AP,JB,VP
Durbanville Industrial Park - - - - - - AP
Northgate Industrial Park - - - - - -
Helderberg
109

The Interchange - - - - - -
Helderberg Industrial Park/Broadlands - - - - - -
Gants - - - - - -
Somerset Business Park - - - - - -
Georges Park/Onverwacht - - - - - -
Mansfield - - - - - -
Firgrove Industrial Estate - - - - - - AN
Strand Halt - - - - - -
Asla Park - - - - - -
Stellenbosch
Plankenbrug - - - - - -
Devon Valley - - - - - -
Tenantville - - - - - -
Klapmuts - - - - - -
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Gqeberha
Rode’s Report 2024:2

Deal Party 1,25 0,00 0,00 6,12 2,36 3,12 BR,BV,SUM,TR

North End 6,12 2,50 2,36 4,71 0,00 3,54 BR,BV,SUM,TR
Korsten/ Neave/ Sidwell/Sydenham 5,69 2,36 1,08 1,08 1,18 0,00 BR,BV,SUM,TR
South End Walmer 0,00 2,50 2,50 0,00 0,00 - BV,SUM
Kariega: Volkswagen area/NMBLP 4,08 4,08 3,30 4,08 6,24 4,08 BR,BV,SUM
Kariega: Hella/Kruisrivier 2,04 2,04 2,90 2,04 1,31 1,25 BR,BV,SUM
Struandale 0,00 2,36 2,36 0,00 2,94 1,25 BR,BV,SUM
Markman Township 1,25 1,25 2,36 2,36 2,36 0,94 BR,BV,SUM
Perseverance 1,25 1,25 0,00 0,00 0,00 2,50 BR,BV,SUM
Walmer 14,34 16,33 10,27 - - - BR,BV,SUM
Greenbushes Industrial Park 1,25 5,40 5,14 6,24 - - BR,BV,SUM
110

Greenbushes (outside industrial park) - - 7,50 7,50 - - BV,SUM

Fairview 12,50 2,50 4,08 5,00 - - BR,BV,SUM,TR
Coega SDZ - - 4,08 4,71 4,71 2,36 BR,BV,SUM
East London
Arcadia - - - - - - CAP
Gately/Woodbrook - - - - - - CAP
Wilsonia - - - - - - CAP
Braelyn - - - - - - CAP
Northend - - - - - - CAP
Chiselhurst - - - - - - CAP
Meisies Halt - - - - - - CAP
Beacon Bay Industrial - - - - - -
IDZ - - - - - -
West Bank Industrial Area - - - - - - CAP
Industrial rentals and vacancies
 Table 7.3 (continued)
Standard deviation from mean prime industrial market rentals
as in 2024:2
Area size leased in m²
Panellist codes
250 500 1.000 2.500 5.000 10.000
Bloemfontein
Rode’s Report 2024:2

Hilton 4,32 2,62 1,41 - - - BR,EQV,NR

East End 5,35 6,24 6,60 7,00 - - BR,EQV,NR
Harvey Road 5,19 5,25 4,32 3,00 - - BR,EQV,NR
Old Industrial 6,16 7,87 6,98 6,50 - - BR,EQV,NR
Hamilton: Mill St 5,85 4,30 2,05 3,50 1,50 - BR,EQV,NR,PLA
Hamilton: G Lubbe St 6,85 6,24 1,50 0,50 - - BR,EQV,NR
Estoire 7,76 4,32 6,36 6,00 - - BR,EQV,NR,PLA
Quaggafontein 0,00 1,00 1,00 1,00 - - BR,EQV,NR
George
George Central - - - - - -
Tamsui Industria - - - - - -
111

Pacaltsdorp Industria - - - - - -
Pietermaritzburg
Willowton - - - - - - HN
Mkondeni/Shortts Retreat - - - - - - HN
Camps Drift - - - - - - HN
Pietermaritzburg Central - - - - - - HN
Rosedale/Allandale - - - - - -
Howick - - - - - -
Lower Umfolozi
Empangeni - - - - - -
Richards Bay (Alton) - - - - - -
Richards Bay CBD (Dollar Drive) - - - - - -
Windhoek
North - - - - - - PVN
Lafrenz - - - - - - PVN
South - - - - - - PVN
Industrial rentals and vacancies

Prosperita - - - - - - PVN
Rode’s Report 2024:2 112 Industrial rentals and vacancies

Notes to the industrial rental tables

1. The rentals are the achievable or market rates for the quarter shown in the table heading and
apply to industrial and warehouse space for the floor sizes indicated. The rentals are the means
(averages) of the rates as per our panels of experts in the various cities.

2. The rental rates assume gross leases, market escalation rates and leases of 3 to 5 years.

3. In terms of a gross lease, the tenant in a stand-alone building typically pays for only his utilities,
like refuse removal, water, sewerage and electricity, as well as internal maintenance and maybe
increases in rates and taxes. He provides and pays for his own security. All other expenses are for
the account of the landlord. In a park, the tenant pays, in addition to his gross rental, his pro rata
share of security costs, security lighting and landscaping.

4. The rental rates also apply to the office portion, where this is less than 10% of the total
building area. This means we quote ‘through rates’. (See Glossary – Annexure 1.) For larger
office portions, the office rental is, as a rule of thumb, about 150% of the industrial rental
rate.

5. Prime space is space that is easily lettable because it satisfies each of the following quality
criteria:

a. Generally, in a good condition

b. Satisfactory macro-access (i.e. access to freeway)
c. Satisfactory micro-access (i.e. from street to building)
d. Proper loading facilities
e. Eaves >6,0 m (excluding micro-/mini-units)
f. On ground level
g. Adequate three-phase electrical power
h. Wide clear span of trusses (few internal pillars)
i. Roof insulation.

However, a building may have additional enhancements that could improve lettability by
increasing the size of the potential tenant pool. Such enhancements could include sufficient
office accommodation, adequate parking, sprinkler systems, masonry up to sill height,
adequate floor loadings and sufficient yard space.

6. Secondary space is space that is not classifiable as prime because it does not satisfy all nine
prerequisites for prime space listed above. Such space is typically old buildings or structures
that have been haphazardly renovated. They would have poor access, too little yard space
or office accommodation, inadequate goods lifts, no three-phase power and obsolete electrics
and ablution facilities. Such space is often (but not exclusively) found in highly urbanised
areas.
Rode’s Report 2024:2 113 Industrial rentals and vacancies

7. Vacancy scale for industrial nodes. The vacancy levels are based on a scale of 1 to 9 as shown
below:

1 2 3 4 5 6 7 8 9
Low Medium High

The scale should be interpreted as follows:

1 = low- vacancy
2 = low vacancy
3 = low+ vacancy
4 = medium- vacancy
5 = medium vacancy
6 = medium+ vacancy
-
7 = high vacancy
8 = high vacancy
9 = high+ vacancy
Where: low = <5% vacancy;
medium = 5%-10% vacancy;
high = >10% vacancy.

Please note that with effect from quarter 2 of 2019 we have changed the percentages corresponding
with the vacancy factors. The previous percentages were:

low = <10% vacancy

medium = 10-20% vacancy
high = >20% vacancy.

8. For notes on how to use a regression equation to interpolate a rental rate, see Annexure 3.
Rode’s Report 2024:2 114 Industrial rentals and vacancies

Table 7.4
Predominant market escalation rates (%)
for industrial leases
Average as in quarter 2024:2
5-year leases
Mean SD n
Central Witwatersrand 7,23 0,64 14
West Rand 7,25 0,80 11
East Rand 7,36 0,60 16
Far East Rand 7,02 1,02 11
Pretoria 7,00 0,71 4
Polokwane 6,19 0,78 4
Mbombela 7,38 0,22 4
Durban 7,46 0,56 12
Ladysmith 7,00 - 1
Lower Umfolozi - - -
Cape Town 7,67 0,62 15
Helderberg 8,00 - 1
Stellenbosch - - -
Gqeberha 6,75 0,43 4
East London 8,00 - 1
Bloemfontein 7,33 0,62 3
George - - -
Pietermaritzburg 7,00 - 1
Windhoek 6,00 - 1
Notes:
1. These are the averages of the predominant — i.e. most often achieved — market escalation rates as reported
by our panel of experts.
2. SD = standard deviation (see Glossary).
Rode’s Report 2024:2 115 Industrial rentals and vacancies

Table 7.5
Indicative operating expenses
for industrial buildings
As in quarter 2024:2 in rands per m² per month
Stand-alone Park
R/m² SD n R/m² SD n
Central Witwatersrand 12,42 4,55 7 13,54 3,37 9
West Rand 9,87 0,19 3 12,67 2,90 3
East Rand 11,45 2,74 11 13,68 4,54 10
Far East Rand 8,17 1,31 6 9,80 3,59 5
Pretoria 30,00 5,00 2 28,00 7,18 4
Polokwane 21,00 2,94 3 27,33 5,25 3
Mbombela 12,00 - 1 14,88 0,65 4
Durban 23,92 6,62 6 24,48 8,96 7
Ladysmith 7,00 - 1 - - -
Lower Umfolozi - - - - - -
Cape Town 12,27 3,63 7 13,44 3,51 9
Helderberg 12,00 - 1 15,00 - 1
Stellenbosch - - - - - -
Gqeberha 13,50 2,86 3 16,25 3,75 2
East London - - - 30,00 - 1
Bloemfontein 26,67 1,25 3 28,00 2,00 2
George - - - - - -
Pietermaritzburg 19,00 - 1 21,00 - 1
Windhoek 28,50 - 1 30,00 - 1
Notes: The operating expenses are estimates for the past 12 months and are as per our expert panellists in the
various cities. The following items are included:
stand-alone buildings: rates and taxes and insurance (incl. Sasria) and
park buildings: as above, plus security, security lighting, landscaping and management.
Rode’s Report 2024:2 116 Panellist logos

Our heartfelt thanks to the companies that contributed to the industrial-market

survey. By clicking on their logos, you will learn more about these panellists.
Rode’s Report 2024:2 117 Panellist logos
Rode’s Report 2024:2 118 Industrial stand values

Chapter 8: Industrial stand values

Stand values edge lower

Kobus Lamprecht

Table 8.1
Sensitivity of land value to changes in rent
A simplistic viability study
Scenario
% change
A B
Market rent year 1 (net) R10 R12 +20%
Capitalization rate 10% 10%
MV on completion (net rent capitalized) R100 R120 +20%
Construction costs -R60 -R60 +0%
Profit margin* -R17 -R20 +18%
Max value of land/stand† R23 R40 +74%
* Assuming a constant profit margin of 20% of cost (construction costs plus land costs)
† Thus, land value is a residual item in this viability study: it is the maximum the developer can afford to pay for
the land.

In the medium term, stand values tend to Stand-value performance

track industrial rental trends, which implies
that poor market-rental growth translates Nationally, the nominal value of serviced and
into very weak stand-value growth and strong level stands decreased by 1,3% in the second
market-rental growth results in very strong quarter of 2024 compared to a year earlier ̶
stand-value growth. the second consecutive quarterly decline.
This implies that in real terms stand values
The explanation for this leveraging effect are still in negative territory.
of rentals on stand values is demonstrated
in the pro forma viability study depicted The decline in stand values in the second
in Table 8.1. It shows how land values quarter was largely due to a sharp decline in
are estimated using the land residual the Central Witwatersrand. This is in spite of
(developers’) approach. Note the sensitivity the strong rental growth observed in Chapter
of stand values to changes in market rentals. 7. But as we said above, the relationship only
The principle is the same as financial gearing. holds in the medium term. In contrast, stand
values in Durban and Cape Town grew by
Please note with “stands” we mean serviced 3,4% and 2,7% respectively.
and level stands zoned for industrial
activities. Serviced implies the stands have Note on the chart the significant disparity
water, electricity and sewerage connections between serviced stand values in Durban and
and are ready to be sold. Cape Town on the one hand and the Central
Rode’s Report 2024:2 119 Industrial stand values

Witwatersrand and the East Rand on the The remainder of this chapter includes
other. The reason for the high stand values in market values for level, serviced stands in
Cape Town is largely the scarcity of land, named industrial areas. The tables showing
while in Durban a key landowner-developer industrial land values contain regression
has held back on new supply during the past parameters to allow readers to interpolate
few years. One of Rode’s survey respondents land values for area sizes other than those
noted that “the Western Cape is in dire need given in the tables. This is necessary because
of serviced, zoned industrial development the relationship between price per m² and
land”. floor-area size is not linear; thus, straight-line
interpolation is not recommended.
Nominal industrial stand values (1000-m² stands)
3,000
Smoothed
2,000
Normally, the larger an industrial stand,
1,000
the cheaper the stand value per square
800
metre, but we find this is not always the case,
(log scale)

600
R/m²

500
400
which is most likely due to a shortage or
300
C ape Town
an oversupply in certain size categories in a
200 Durban
East Rand particular township. However, in the case
of virgin land with industrial-development
C entral Witwatersrand

100
00 02 04 06 08
Source of data: Rode's Time Series
10 12 14 16 18 20 22 24
potential, one would expect a huge difference
in the value per hectare, depending on
Real industrial stand values (1000-m² stands)
2021 rands extent: larger tracks take longer to sell out
2,000
once serviced, which dramatically pushes
1,600
1,400
Sm oothe d
up the risk for the developer, which in turn
1,200 means the present value per hectare of larger
(log scale)

1,000
tracks will be lower, holding all other factors
R/m²

800
Deflated by BER BCI (2021=100)

600 C ape Town

constant, because of the time value of money
400
Durban
East Rand and the higher risk (resulting in a higher
C entral Witwatersrand
discount rate).
00 02 04 06 08 10 12 14 16 18 20 22 24

Source of data: Rode's Time Series

For more details on how to use these

These changes are calculated on smoothed equations, refer to Annexure 3 (annexure
data. Note also that the y-scale (vertical scale) page XVI).
of the graphs is in log form. The advantage of
this is that we can now reliably compare the This concludes our chapter on industrial stand
growth rates of the cities with each other. It values. 
so happens that the cities’ stand values run
nearly parallel, meaning their deflated market PS: If you do not understand a term used in
levels have been growing at similar rates since this article, please consult the Glossary
about 2009. (Annexure 1) or let us know.
 Table 8.2
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Rode’s Report 2024:2

Central Witwatersrand
Cambridge Park 1.500 1.800 1.800 1.800 1,0 6,899 0,068 0,58
Wynberg Proper 1.750 1.800 1.800 1.800 1,0 7,403 0,011 0,58
Strijdom Park 1.233 1.233 1.267 1.267 1,0 7,018 0,014 0,84
Kya Sand West 1.000 1.000 950 950 1,0 7,099 -0,027 0,84
Kya Sand East 850 850 775 775 1,0 7,089 -0,048 0,84
Lanseria Corporate Estate 1.225 1.225 1.275 1.275 1,1 6,962 0,021 0,84
Cosmo Business Park 1.000 1.000 983 850 1,5 7,374 -0,063 0,66
Mostyn Park 950 950 917 825 1,3 7,281 -0,058 0,78
Clayville/Olifantsfontein 738 750 775 800 3,4 6,355 0,035 0,99
Chloorkop 975 938 940 1.000 2,2 6,790 0,010 0,10
120

Amalgam - 1.200 1.200 1.200 1,0 - - -

Crown Mines 1.000 1.000 917 900 1,3 7,283 -0,052 0,90
Industria 700 700 600 600 3,0 7,125 -0,081 0,84
Booysens/Booysens Reserve/Ophirton 800 800 800 800 1,0 6,685 0,000 -
Village Main/Village Deep/New Centre 450 450 450 500 - 5,817 0,040 0,58
Benrose 750 750 750 750 1,0 6,620 0,000 -
Steeledale/Electron/Tulisa Park - 873 923 1.120 1,0 - - -
Aeroton 1.100 1.100 1.083 1.083 2,3 7,060 -0,008 0,84
Devland 800 800 800 800 - 6,685 0,000 -
Nancefield 800 700 700 700 - 6,988 -0,050 0,58
Cleveland/Heriotdale 788 788 788 788 4,5 6,669 0,000 -
Newlands/Martindale - - - - - - - -
Kew/Wynberg East 900 900 750 750 4,0 7,481 -0,096 0,84
Bramley View/Lombardy West 800 800 500 500 - 8,435 -0,246 0,84
Marlboro South (Alexandra) 250 250 250 250 - 5,521 0,000 -
Halfway House: hi-tech strip - 1.450 1.450 1.425 1,4 - - -
Halfway House: Richards Drive 1.300 1.217 1.213 1.225 2,3 7,305 -0,023 0,49
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Randjespark - - 1.350 1.350 1,5 - - -
Rode’s Report 2024:2

Corporate Park (Midrand) 1.500 1.500 1.400 1.400 1,0 7,570 -0,036 0,84
Commercia 900 850 825 825 1,2 7,043 -0,037 0,84
Kramerville/Eastgate Ext12 & Ext13 1.667 1.667 1.567 1.567 1,0 7,649 -0,032 0,84
Linbro Park 1.433 1.433 1.421 1.364 1,9 7,413 -0,020 0,72
Longlake 1.617 1.581 1.514 1.514 1,3 7,600 -0,031 0,92
Wesco Park/Eastgate Ext3, Ext11, Ext6, - 2.000 - - 1,0 - - -
Ext8/Malboro North (New)
City Deep 1.025 1.019 925 913 2,0 7,344 -0,058 0,90
North Riding/Hoogland 1.350 1.350 1.350 1.267 1,4 7,384 -0,024 0,58
Samrand Centurion 1.100 1.083 1.067 1.050 4,2 7,139 -0,020 1,00
Barbeque Downs 1.350 1.350 1.333 1.367 1,0 7,186 0,003 0,08
121

Selby Ext 12/13/15/19/20/24/City West 450 450 450 450 - 6,109 0,000 -
Selby Ext 5/10/14/18 450 450 450 450 - 6,109 0,000 -
Selby Ext 11 450 450 450 450 - 6,109 0,000 -
Selby Ext 3/4/6 450 450 450 450 - 6,109 0,000 -
Denver (Old) 338 338 338 335 1,0 5,842 -0,003 0,58
Denver (New) 788 788 788 788 1,0 6,669 0,000 -
Kyalami Business Park 1.800 1.800 - - 1,0 - - -
Reuven 850 850 850 850 - 6,745 0,000 -
Selby (Old)/Selby Ext2/Park Central 450 450 450 450 - 6,109 0,000 -
Robertsham 850 850 850 850 - 6,745 0,000 -
Fordsburg/Newtown 350 350 600 500 - 4,356 0,214 0,65
Waterfall 1.650 1.650 1.600 1.600 1,0 7,523 -0,016 0,84
Lords View 1.175 1.167 1.150 1.150 2,6 7,139 -0,010 0,92
Central Witwatersrand 1.075 1.094 1.067 1.068 1,7
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Rode’s Report 2024:2

West Rand
Lea Glen - - - - - - - -
Honeydew X19/20/21/22 1.250 1.250 1.250 1.250 1,0 7,131 0,000 -
Stormill 1.100 1.100 1.000 950 3,0 7,500 -0,069 0,92
Chamdor 500 500 400 400 1,0 7,046 -0,117 0,84
Factoria 800 800 800 600 1,0 7,482 -0,108 0,58
Krugersdorp: Delporton 600 600 600 600 - 6,397 0,000 -
Randfontein: Aureus 500 500 500 500 - 6,215 0,000 -
Boltonia 400 400 400 400 - 5,991 0,000 -
Roodepoort: Technikon/Manufacta 500 500 500 500 - 6,215 0,000 -
Industria North - - - - - - - -
122

Robertville 1.025 1.025 925 925 1,3 7,315 -0,054 0,84

Laserpark 1.267 1.267 1.233 1.233 1,3 7,243 -0,014 0,84
West Rand 885 885 846 827 1,4
East Rand
Elandsfontein 875 875 838 838 2,0 6,937 -0,023 0,84
Tunney/Greenhills 1.210 1.210 1.188 1.117 1,4 7,339 -0,033 0,77
Henville 900 900 850 850 2,0 7,015 -0,030 0,84
Hughes 1.117 1.117 1.117 1.083 1,0 7,102 -0,011 0,58
Bartletts 1.175 1.125 1.125 1.125 1,0 7,168 -0,016 0,58
Lilianton - - - - - - - -
Comet - 850 850 850 1,0 - - -
Meadowbrook/Wilbart 1.250 1.250 1.200 1.150 1,7 7,401 -0,037 0,90
Sunnyrock 1.150 1.150 1.100 1.050 1,7 7,342 -0,041 0,90
Rustivia/Activia Park 900 900 867 867 2,1 6,943 -0,020 0,84
Eastleigh 917 917 883 883 1,4 6,959 -0,019 0,84
Sebenza Ext 14 1.000 1.000 950 950 1,0 7,099 -0,027 0,84
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Spartan Ext 16 (Sebenza Link) + Ext 1/3/7 900 900 875 875 1,0 6,907 -0,015 0,84
Rode’s Report 2024:2

Isando 1.017 1.017 992 975 2,1 7,064 -0,019 0,92

Isando 3 1.100 1.088 1.075 1.075 1,4 7,072 -0,010 0,90
Jet Park 1.200 1.190 1.190 1.190 1,9 7,109 -0,003 0,58
Alrode & Xs 783 783 758 758 1,3 6,784 -0,017 0,84
Alrode South 750 733 683 667 1,8 7,003 -0,055 0,97
Alberton 750 750 713 713 1,2 6,811 -0,027 0,84
Aeroport/Spartan Ext 2 1.188 1.188 1.188 1.188 1,0 7,080 0,000 -
Delville 475 475 475 463 1,0 6,237 -0,010 0,58
Roodekop 583 583 550 500 1,8 6,852 -0,067 0,86
Wadeville: Industrial zoning 733 700 675 650 2,4 6,943 -0,051 0,99
123

Route 24/Meadowdale 1.300 1.300 1.133 1.133 1,9 7,681 -0,072 0,84
Germiston S/Industries E 583 583 583 595 1,5 6,314 0,007 0,58
Driehoek/Industries W 850 850 850 862 3,5 6,707 0,005 0,58
Knights 625 625 625 638 2,0 6,383 0,007 0,58
Spartan Proper 900 900 870 870 1,5 6,929 -0,018 0,84
Founders View 1.188 1.188 1.138 1.138 1,2 7,240 -0,023 0,84
Longmeadow 1.533 1.533 1.500 1.483 1,0 7,448 -0,016 0,92
Pomona/Kempton Park 1.088 1.088 1.063 1.010 2,8 7,219 -0,031 0,82
Gosforth Park 1.260 1.260 1.260 1.260 2,5 7,139 0,000 -
S&J Industrial Estate 1.270 1.270 1.270 1.270 4,6 7,147 0,000 -
East Rand 1.021 1.015 989 977 1,8
Far East Rand
Boksburg North & East 788 788 775 763 2,0 6,774 -0,014 0,90
Benoni South 633 633 617 600 1,3 6,626 -0,024 0,90
New Era/Vulcania 567 517 483 450 2,3 6,996 -0,096 0,99
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Nuffield 500 400 350 350 1,0 7,219 -0,154 0,85
Rode’s Report 2024:2

Fulcrum 500 400 350 350 1,0 7,219 -0,154 0,85

Apex 800 800 733 733 3,7 7,009 -0,046 0,84
Labore Brakpan 600 590 550 550 3,5 6,697 -0,043 0,90
Morehill Ext 8 Benoni 783 767 717 700 1,3 7,029 -0,052 0,97
Far East Rand 685 664 628 615 2,2
Pretoria
Charlotte Maxeke 1.000 1.000 800 800 1,0 7,739 -0,117 0,84
Pretoria Industrial Township 1.000 1.000 800 800 1,0 7,739 -0,117 0,84
Koedoespoort - - - - - - - -
Waltloo/Despatch 1.100 1.100 1.050 1.000 1,3 7,312 -0,043 0,90
124

Silverton/Silvertondale 1.000 950 950 900 1,0 7,174 -0,040 0,86

Samcor Park 1.050 1.050 1.000 1.000 1,5 7,138 -0,026 0,84
Sunderland Ridge 750 750 650 650 3,0 7,153 -0,075 0,84
Hermanstad 1.000 1.000 800 800 1,0 7,739 -0,117 0,84
Kirkney 350 350 300 250 1,0 6,937 -0,149 0,89
Hennopspark X15 & X7 800 700 600 - 1,0 - - -
Gateway 1.400 1.400 1.190 1.190 1,5 7,849 -0,085 0,84
Rooihuiskraal - - - - - - - -
Louwlardia 1.600 1.600 1.500 1.500 1,2 7,618 -0,034 0,84
Lyttelton Manor X4/X6 1.300 1.300 1.300 1.300 1,0 7,170 0,000 -
Pretoria North 450 450 350 300 1,0 7,472 -0,190 0,92
Silvertondale X1 - 1.100 900 800 2,0 - - -
Klerksoord 350 350 300 200 2,0 7,556 -0,233 0,79
Rosslyn 925 925 850 800 2,0 7,313 -0,067 0,92
Centurion 1.400 1.200 1.200 1.000 1,0 8,100 -0,126 0,86
Pretoria 1.011 1.000 924 902 1,5
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Rode’s Report 2024:2

Polokwane
Lebowakgomo - - - - - - - -
Superbia - - - - 1,0 - - -
Industria - - - - 1,0 - - -
Ladine - 1.200 - - 2,0 - - -
Futura - - - - 1,0 - - -
Laboria - - 500 - 2,7 - - -
Magna Via 993 - 875 - 2,5 - - -
Seshego - - - - - - - -
Polokwane - - - - 2,1
Mbombela
125

Mbombela East 1.450 1.450 1.400 1.400 2,0 7,410 -0,018 0,84
Mbombela West 750 750 750 750 1,0 6,620 0,000 -
Rocky's Drift 800 800 800 800 3,0 6,685 0,000 -
Riverside Park 1.185 1.185 1.176 1.164 3,3 7,135 -0,008 0,87
Mbombela 1.106 1.106 1.094 1.086 2,7
Durban
Springfield Park 2.500 2.500 2.333 2.250 1,8 8,182 -0,050 0,92
Mayville 1.500 1.500 1.250 1.000 1,7 8,611 -0,179 0,89
Phoenix 2.000 2.000 1.775 1.500 2,0 8,512 -0,126 0,87
Chris Hani Rd (North Coast/Briardene) 2.750 2.500 2.375 2.188 1,8 8,555 -0,093 0,97
Briardene Industrial Park 2.750 2.500 2.375 2.250 1,8 8,477 -0,083 0,96
Umgeni Rd/Stamford Hill 1.750 1.750 1.500 1.250 1,7 8,547 -0,149 0,89
Umbilo/Sydney Rd/Magwaza Maphalala St 1.500 1.500 1.250 1.000 1,7 8,611 -0,179 0,89
(Gale)
Jacobs 2.500 2.167 2.083 2.000 1,7 8,408 -0,090 0,87
Mobeni 2.500 2.167 2.083 2.000 1,7 8,408 -0,090 0,87
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Prospecton 1.800 1.750 1.667 1.667 1,5 - - -
Rode’s Report 2024:2

Ithala Industrial Estate - - - - 1,0 - - -

Pinetown Central - 1.750 1.625 1.500 1,7 - - -
New Germany - - 1.500 1.425 1,7 - - -
Mountain Ridge 1.125 1.000 750 625 3,5 8,870 -0,263 0,99
Isipingo 2.000 2.000 1.500 1.500 1,5 8,672 -0,151 0,84
Rossburgh/South Coast Rd 2.500 2.500 2.375 2.250 1,7 8,165 -0,047 0,90
Edwin Swales Drive - - 2.125 2.075 1,7 - - -
Glen Anil - - 2.317 2.233 2,0 - - -
Felix Dlamini Rd (Brickfield) 2.500 2.500 2.250 2.000 1,7 8,543 -0,099 0,89
Verulam 1.375 1.375 1.125 925 4,5 8,516 -0,179 0,90
126

Canelands 1.500 1.500 1.375 1.300 3,5 7,793 -0,067 0,92

Tongaat 1.183 1.025 875 725 5,0 8,513 -0,207 0,99
New Westmead/Mahogany 1.500 1.450 1.333 1.190 2,3 8,018 -0,099 0,95
Westmead - 1.750 1.625 1.500 1,7 - - -
Alexander Park - - 1.625 1.500 1,7 - - -
Surprise Farm - - 1.625 1.500 1,7 - - -
Mariann Park/Southmead 1.375 1.250 1.200 1.083 2,7 7,878 -0,095 0,96
Queensmead Industria - - - - 1,0 - - -
Maxmead - - 1.625 1.500 2,3 - - -
Ringroad Industrial Park - - - - 1,0 - - -
Avoca/Red Hill/Northgate - - 2.125 1.750 3,0 - - -
Falcon Park 1.250 1.250 1.000 750 3,0 8,759 -0,225 0,88
Riverhorse Valley Business Estate - 2.625 2.500 2.500 2,3 - - -
Mount Edgecombe 2.750 2.500 2.067 2.067 2,3 8,845 -0,136 0,92
Umbogintwini/Southgate 2.000 2.000 1.500 1.500 1,3 8,672 -0,151 0,84
Southgate Industrial Park - - 2.000 2.000 1,0 - - -
Umgeni Park - - - - 5,0 - - -
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Hammarsdale 1.483 1.153 1.020 788 4,5 9,048 -0,256 0,97
Rode’s Report 2024:2

Cato Ridge 1.450 1.250 1.050 888 4,3 8,732 -0,210 1,00
Camperdown 1.313 1.025 900 825 4,0 8,467 -0,193 0,94
Ballito 2.233 2.125 2.000 1.417 3,3 9,006 -0,180 0,78
Dube Tradeport - - - 1.600 2,5 - - -
Kingsburgh 1.550 1.250 1.150 1.000 1,5 8,532 -0,177 0,95
Cornubia 2.350 2.083 1.838 1.670 4,3 8,768 -0,147 1,00
Durban 1.734 1.780 1.705 1.544 2,3
Ladysmith
Ezakheni/Pieters - - - - - - - -
Danskraal - - - 180 - - - -
127

Nambiti - - - 180 - - - -
Colenso - - - - - - - -
Ladysmith - - - 180 -
Cape Town
Viking Place - - - - - - - -
Glosderry - - - - 1,0 - - -
Paarden Eiland/Metro 2.700 2.500 2.400 2.300 1,0 8,346 -0,066 0,96
Montague Gardens 2.200 2.200 2.114 1.925 1,1 8,104 -0,056 0,81
Marconi Beam 2.200 2.000 1.900 1.700 1,0 8,412 -0,104 0,97
Killarney Gardens 2.038 1.938 1.867 - 1,7 - - -
Richmond Park - - - - 1,0 - - -
Racing Park 600 600 - - 3,0 - - -
Atlantis 525 525 400 400 3,0 7,276 -0,143 0,84
Woodstock/Salt River/Observatory - - - - 1,0 - - -
Athlone 1 & 2 - - - - - - - -
Lansdowne Nerissa - - - - - - - -
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Rode’s Report 2024:2

Sand Industria - - - - - - - -
Ottery Hillstar - - - - - - - -
Ottery Sunset - - - - - - - -
Diep River - - - - 1,0 - - -
Elfindale - - - - - - - -
Monwood/Philippi - - - - - - - -
Retreat/Steenberg - - - - 1,0 - - -
Capricorn Park 1.850 1.700 - - 1,0 - - -
Maitland 2.100 1.675 1.550 - 1,0 - - -
Ndabeni 2.200 2.200 2.100 2.100 1,0 7,869 -0,024 0,84
Epping 1 & 2 1.750 1.750 1.750 1.750 1,5 7,467 0,000 -
128

WP Park 2.500 2.500 2.500 2.500 1,0 7,824 0,000 -

Elsies River (excl. Central Park) 1.200 1.200 1.200 1.200 1,0 7,090 0,000 -
Parow Beaconvale 3.050 3.200 3.950 - - - - -
Tygerberg Business Park - - - - - - - -
Parow Industria 3.050 3.200 3.950 - - - - -
Parow East - - - - - - - -
Bellville Oakdale - - - - - - - -
Bellville Stikland/Kaymor 2.120 2.100 2.100 2.000 1,3 7,816 -0,022 0,70
Bellville Triangle 1.738 1.725 1.675 1.650 1,0 7,628 -0,024 0,97
Bellville South/Sacks Circle 1.750 1.750 1.750 1.600 1,0 7,716 -0,034 0,58
Kraaifontein 1.700 1.700 1.400 - 1,0 - - -
Brackenfell Industria 2.075 2.075 1.867 - 2,0 - - -
Everite Brackenfell 2.150 2.150 1.900 - 1,0 - - -
Kuils River 1.750 1.750 1.700 1.600 1,0 7,743 -0,038 0,82
Blackheath 1.300 1.267 1.150 1.108 2,2 7,691 -0,074 0,97
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Saxenburg Industrial Park 2.000 2.000 1.867 - 1,0 - - -
Rode’s Report 2024:2

Okavango 1.800 1.750 1.600 1.500 - 8,072 -0,082 0,98

Brackengate/Icon Business Park 2.500 2.400 2.300 - - - - -
Paarl - - - 1.200 3,0 - - -
Wellington - - - - - - - -
Contermanskloof - - - - - - - -
Rivergate 2.100 1.975 1.740 1.400 6,0 8,863 -0,171 0,93
Airport Ind (north of sewerage farm) - - - - - - - -
Airport Ind (west of Borcherds Quarry) 2.400 2.000 2.000 - - - - -
Airport Ind (east of Borcherds Quarry) - - - - - - - -
King Air Industrial Park - - - - - - - -
Durbanville Industrial Park - - - - - - - -
129

Northgate Industrial Park - - - - - - - -

Cape Town 1.947 1.890 1.925 1.582 1,6
Helderberg
The Interchange - - - - - - - -
Helderberg Industrial Park/Broadlands - - - - - - - -
Gants - - - - - - - -
Somerset Business Park - - - - - - - -
Georges Park/Onverwacht - - - - - - - -
Mansfield - - - - - - - -
Firgrove Industrial Estate - - - 1.400 1,0 - - -
Strand Halt - - - - - - - -
Asla Park - - - - - - - -
Helderberg - - - - 1,0
Stellenbosch
Plankenbrug - - - - - - - -
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Devon Valley - - - - - - - -
Rode’s Report 2024:2

Tenantville - - - - - - - -
Klapmuts - - - - - - - -
Stellenbosch - - - - -
Gqeberha
Deal Party - 583 583 583 3,0 - - -
North End 500 500 500 500 1,5 6,215 0,000 -
Korsten/Neave/Sidwell/Sydenham 675 617 533 533 2,0 7,261 -0,110 0,92
South End Walmer 600 600 - - - - - -
Kariega: Volkswagen area/NMBLP 300 300 300 292 2,5 5,782 -0,011 0,58
Kariega: Hella/Kruisrivier 233 233 233 225 2,5 5,553 -0,014 0,58
130

Struandale 500 483 483 483 1,5 6,292 -0,013 0,58

Markman Township 425 367 350 333 3,3 6,696 -0,098 0,89
Perseverance 433 433 400 383 2,0 6,488 -0,058 0,92
Walmer 700 700 625 625 2,3 6,973 -0,059 0,84
Greenbushes Industrial Park 550 550 500 500 3,0 6,665 -0,050 0,84
Greenbushes (outside industrial park) 433 433 400 350 3,0 6,740 -0,092 0,85
Fairview 1.583 1.583 1.375 - 2,0 - - -
Coega SDZ - - - - - - - -
Gqeberha 633 579 505 433 2,3
East London
Arcadia - - - - - - - -
Gately/Woodbrook - - - - - - - -
Wilsonia - - - - - - - -
Braelyn - - - - - - - -
Northend - - - - - - - -
Chiselhurst - - - - - - - -
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Meisies Halt 650 650 650 500 4,0 7,204 -0,098 0,58
Rode’s Report 2024:2

Beacon Bay Industrial 750 750 650 500 3,0 7,880 -0,173 0,84
West Bank Industrial Area - - - - - - - -
East London - - - - 3,5
Bloemfontein
Hilton - - 450 450 1,0 - - -
East End 550 600 650 513 2,0 6,473 -0,015 0,02
Harvey Road 700 700 450 450 1,0 8,196 -0,232 0,84
Old Industrial 600 600 350 350 1,0 8,404 -0,282 0,84
Hamilton: Mill St 400 400 350 350 1,0 6,489 -0,070 0,84
Hamilton: G Lubbe St 300 300 250 250 1,0 6,383 -0,096 0,84
131

Estoire - - 575 535 4,0 - - -

Quaggafontein 900 900 825 1.000 3,0 6,593 0,027 0,12
Bloemfontein 571 583 530 495 1,8
George
George Central - - - - - - - -
Tamsui Industria - - - - - - - -
Pacaltsdorp Industria - - - - - - - -
George - - - - -
Pietermaritzburg
Willowton - 600 600 580 2,0 - - -
Mkondeni/Shortts Retreat - 580 510 480 4,0 - - -
Camps Drift - - - - - - - -
Pietermaritzburg Central - - - - - - - -
Rosedale/Allandale - - - - - - - -
Howick - - - - - - - -
Pietermaritzburg - - - - -
Industrial stand values
 Table 8.2 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m² Land
a b r²
1.000 2.000 5.000 10.000 availability
Lower Umfolozi
Rode’s Report 2024:2

Empangeni - - - - - - - -
Richards Bay (Alton) - - - - - - - -
Richards Bay CBD (Dollar Drive) - - - - - - - -
Lower Umfolozi - - - - -
Windhoek
North 1.850 1.750 1.600 1.400 1,0 8,353 -0,118 0,96
Lafrenz 1.850 1.750 1.650 1.450 1,0 8,226 -0,100 0,94
South - - 1.800 1.550 1,0 - - -
Prosperita - - 1.750 1.450 1,0 - - -
Windhoek - - 1.700 1.463 1,0
132
Industrial stand values
 Table 8.3
Standard deviation from mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Rode’s Report 2024:2

Central Witwatersrand
Cambridge Park - - - - SHP
Wynberg Proper 250,00 200,00 200,00 200,00 AP,SHP
Strijdom Park 47,14 47,14 94,28 94,28 AP,OSO,SHP,WP
Kya Sand West 100,00 100,00 50,00 50,00 AP,SHP
Kya Sand East 150,00 150,00 75,00 75,00 AP,OSO,SHP
Lanseria Corporate Estate 225,00 225,00 175,00 175,00 AP,CPS,SHP
Cosmo Business Park 100,00 100,00 84,98 50,00 AP,CPS,SHP
Mostyn Park 50,00 50,00 84,98 25,00 AP,CPS,SHP
Clayville/Olifantsfontein 96,01 79,06 55,90 61,24 AP,CPS,GB,SHP
Chloorkop 43,30 64,95 96,95 137,84 AP,CPS,GB,PPR,SHP,SS
133

Amalgam - - - - AP,RO
Crown Mines - 285,77 277,89 254,95 AP,GB,MR,RO
Industria - - - - AP,GB,SS
Booysens/Booysens Reserve/Ophirton - - - - AP,MR
Village Main/Village Deep/New Centre - - - - AP
Benrose 50,00 50,00 50,00 50,00 AP,MR,RO
Steeledale/Electron/Tulisa Park - 127,50 177,50 380,00 AP,RO,SS
Aeroton 100,00 100,00 117,85 117,85 AP,GB,RO,SS
Devland - - - - AP
Nancefield - - - - AP
Cleveland/Heriotdale 12,50 12,50 12,50 12,50 AP,RO
Newlands/Martindale - - - -
Kew/Wynberg East 100,00 100,00 250,00 250,00 AP,MR
Bramley View/Lombardy West - - - - AP
Marlboro South (Alexandra) - - - - AP
Halfway House: hi-tech strip - 50,00 50,00 75,00 GB,OSO,SHP,WP
Industrial stand values

Halfway House: Richards Drive - 271,83 235,52 216,51 AP,CPS,OSO,SHP,SS

 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Rode’s Report 2024:2

Randjespark - - 150,00 150,00 CPS,SHP,SS

Corporate Park (Midrand) - - - - GB,OSO,SHP,SS
Commercia - 50,00 25,00 25,00 CPS,SHP
Kramerville/Eastgate Ext12 & Ext13 339,93 339,93 418,99 418,99 AP,OSO,SHP
Linbro Park 274,87 274,87 299,83 190,33 AP,CPS,GB,PPR,MR,SHP,SS,WP
Longlake 211,48 237,09 294,85 294,85 AP,CPS,GB,PPR,ME,MR,SHP,SS,WP
Wesco Park/Eastgate Ext3, Ext11, Ext6, Ext8/ - - - - CPS
Malboro North (New)
City Deep - 6,25 100,00 87,50 AP,RO
North Riding/Hoogland 50,00 50,00 50,00 124,72 AP,CPS,SHP
Samrand Centurion 294,39 311,80 309,12 318,85 AP,CPS,OSO,SHP
134

Barbeque Downs 450,00 450,00 368,18 329,98 AP,CPS,GB,SHP

Selby Ext 12/13/15/19/20/24/City West - - - - AP
Selby Ext 5/10/14/18 - - - - AP
Selby Ext 11 - - - - AP
Selby Ext 3/4/6 - - - - AP
Denver (Old) 137,50 137,50 137,50 135,00 AP,RO
Denver (New) 12,50 12,50 12,50 12,50 AP,RO
Kyalami Business Park - - - - GB,MR,OSO,SHP
Reuven - - - - AP
Selby (Old)/Selby Ext2/Park Central - - - - AP
Robertsham - - - - AP
Fordsburg/Newtown - - - - AP
Waterfall 150,00 150,00 81,65 81,65 CPS,MR,SHP,SS
Lords View 43,30 47,14 86,60 86,60 AP,CPS,ME,SHP,WP
Industrial stand values
 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Rode’s Report 2024:2

West Rand
Lea Glen - - - -
Honeydew X19/20/21/22 - - - - AP
Stormill - - - - AP
Chamdor - - - - AP
Factoria - - - - AP
Krugersdorp: Delporton - - - - AP
Randfontein: Aureus - - - - AP
Boltonia - - - - AP
Roodepoort: Technikon/Manufacta - - - - AP
Industria North - - - - AP
135

Robertville 75,00 75,00 75,00 75,00 AP,SHP,

Laserpark 23,57 23,57 23,57 23,57 AP,CPS,OSO,SHP,WP
East Rand
Elandsfontein 82,92 82,92 108,25 108,25 CPS,ME,PPR,SHP
Tunney/Greenhills 66,33 66,33 89,27 102,74 AP,CPS,ME,MR,PPR,SHP
Henville 81,65 81,65 122,47 122,47 CPS,ME,PPR
Hughes 102,74 102,74 102,74 117,85 AP,ME,PPR
Bartletts 75,00 143,61 143,61 143,61 AP,ME,MR,PPR
Lilianton - - - -
Comet - - - - MR
Meadowbrook/Wilbart 50,00 50,00 100,00 150,00 CPS,SHP
Sunnyrock 50,00 50,00 0,00 50,00 AP,CPS,ME
Rustivia/Activia Park 141,42 141,42 169,97 169,97 CPS,ME,SHP
Eastleigh 62,36 62,36 23,57 23,57 AP,ME,MR,SHP
Sebenza Ext 14 100,00 100,00 50,00 50,00 ME,SHP
Spartan Ext 16 (Sebenza Link) + Ext 1/3/7 187,08 187,08 163,94 163,94 GB,ME,PPR,SHP
Industrial stand values

Isando 134,37 134,37 159,21 172,60 AP,CPS,GB,ME,OSO,PPR,SHP

 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Isando 3 70,71 73,95 82,92 82,92 GB,ME,OSO,SHP
Rode’s Report 2024:2

Jet Park 83,67 80,00 80,00 80,00 GB,ME,OSO,PPR,RO,SHP

Alrode & Xs 201,38 201,38 182,95 182,95 MR,RO,SHP
Alrode South 187,08 169,97 143,37 124,72 CPS,MR,SHP
Alberton 180,28 180,28 143,07 143,07 AP,MR,RO,SHP
Aeroport/Spartan Ext 2 151,55 151,55 151,55 151,55 AP,ME,PPR,SHP
Delville 75,00 75,00 75,00 62,50 MR,RO
Roodekop 131,23 131,23 108,01 81,65 MR,RO,SHP
Wadeville: Industrial zoning 84,98 93,54 55,90 61,24 AP,MR,RO,SHP
Route 24/Meadowdale 100,00 100,00 205,48 188,56 AP,CPS,SHP
Germiston S/Industries E 143,37 143,37 143,37 163,45 AP,MR,RO
136

Driehoek/Industries W 108,01 108,01 108,01 98,01 AP,MR,RO

Knights 125,00 125,00 125,00 162,50 AP,RO
Spartan Proper 187,08 187,08 146,97 146,97 AP,GB,ME,PPR,SHP
Founders View 151,55 151,55 221,85 221,85 AP,GB,ME,PPR,SHP
Longmeadow 197,20 197,20 223,61 254,41 AP,GB,ME,MR,PPR,SHP
Pomona/Kempton Park 174,55 174,55 178,10 190,79 AP,GB,ME,PPR,RO
Gosforth Park 73,48 73,48 73,48 73,48 AP,ME,MR,PPR,RO,SHP
S&J Industrial Estate 67,82 67,82 67,82 67,82 AP,ME,MR,PPR,RO,SHP
Far East Rand
Boksburg North & East 129,30 129,30 134,63 143,07 AP,CPS,MR,RO
Benoni South 23,57 23,57 23,57 40,82 AP,MR,RO
New Era/Vulcania 47,14 84,98 102,74 108,01 AP,MR,RO
Nuffield - - - - AP
Fulcrum - - - - AP
Apex 81,65 81,65 117,85 117,85 AP,MR,RO
Labore Brakpan 100,00 90,00 100,00 100,00 AP,RO
Morehill Ext 8 Benoni 154,56 164,99 94,28 70,71 AP,MR,RO
Industrial stand values
 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Rode’s Report 2024:2

Pretoria
Charlotte Maxeke - - - - AP
Pretoria Industrial Township - - - - AP
Koedoespoort - - - -
Waltloo/Despatch 100,00 100,00 150,00 200,00 AP,GB,HN
Silverton/Silvertondale 0,00 50,00 50,00 100,00 AP,GB
Samcor Park 50,00 50,00 100,00 100,00 AP,GB
Sunderland Ridge - - - - AP
Hermanstad - - - - AP
Kirkney - - - - AP
Hennopspark X15 & X7 - - - - AP
137

Gateway - - 210,00 210,00 ABA,GB

Rooihuiskraal - - - - MAS
Louwlardia - - - - SHP
Lyttelton Manor X4/X6 - - - - AP
Pretoria North - - - - AP
Silvertondale X1 - 200,00 - - AP,HN
Klerksoord - - - - AP
Rosslyn 275,00 275,00 350,00 400,00 AP,GB
Centurion - - - - AP
Polokwane
Lebowakgomo - - - -
Superbia - - - - MO
Industria - - - - MO
Ladine - - - - TG
Futura - - - - MO
Laboria - - - - TG
Industrial stand values

Magna Via 57,50 - 75,00 - ES,NET,TG

Seshego - - - -
 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Rode’s Report 2024:2

Mbombela
Mbombela East - - - - ORI
Mbombela West - - - - ORI
Rocky's Drift - - - - ORI
Riverside Park 0,00 0,00 15,16 36,81 PG,KEL,MPV,ORI
Durban
Springfield Park 0,00 - 471,40 250,00 AWP,BON,PC,ZZ
Mayville - - - - PC,ZZ
Phoenix 0,00 0,00 25,00 0,00 AWP,PC,ZZ
Chris Hani Rd (North Coast/Briardene) 250,00 0,00 414,58 324,76 AWP,BON,PC,ZZ
Briardene Industrial Park 250,00 0,00 125,00 250,00 AWP,BON,PC,ZZ
138

Umgeni Rd/Stamford Hill - - - - PC,ZZ

Umbilo/Sydney Rd/Magwaza Maphalala St (Gale) - - - - PC,ZZ
Jacobs - 471,40 424,92 408,25 AWP,PC,ZZ
Mobeni - 471,40 424,92 408,25 AWP,PC,ZZ
Prospecton - 540,06 623,61 623,61 AWP,PC,ZZ
Ithala Industrial Estate - - - -
Pinetown Central - 250,00 375,00 500,00 PC,ZZ
New Germany - - 500,00 575,00 PC,ZZ
Mountain Ridge 125,00 0,00 250,00 125,00 AWP,ZZ
Isipingo - - 0,00 0,00 AWP,PC
Rossburgh/South Coast Rd - - 125,00 250,00 PC,ZZ
Edwin Swales Drive - - 375,00 425,00 PC,ZZ
Glen Anil - - 516,94 612,83 BON,PC,ZZ
Felix Dlamini Rd (Brickfield) - - - - PC,ZZ
Verulam 125,00 125,00 125,00 175,00 AWP,ZZ
Canelands 0,00 - 125,00 200,00 AWP,PC,SPS
Industrial stand values
 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Tongaat 289,64 225,00 125,00 25,00 AWP,SPS,ZZ
Rode’s Report 2024:2

New Westmead/Mahogany 0,00 393,70 471,40 573,47 AWP,PC,ZZ

Westmead - 250,00 375,00 500,00 PC,ZZ
Alexander Park - - 375,00 500,00 PC,ZZ
Surprise Farm - - 375,00 500,00 PC,ZZ
Mariann Park/Southmead 125,00 0,00 216,02 311,80 AWP,PC,ZZ
Queensmead Industria - - - -
Maxmead - - 375,00 500,00 PC,ZZ
Ringroad Industrial Park - - - -
Avoca/Red Hill/Northgate - - 875,00 750,00 BON,ZZ
Falcon Park - - - - ZZ
139

Riverhorse Valley Business Estate - 125,00 0,00 0,00 BON,PC,ZZ

Mount Edgecombe 250,00 0,00 94,28 94,28 AWP,PC,ZZ
Umbogintwini/Southgate - - 0,00 0,00 AWP,PC
Southgate Industrial Park - - - - PC
Umgeni Park - - - - ZZ
Hammarsdale 184,09 136,71 58,88 143,07 AWP,PC,SH,SPS,ZZ
Cato Ridge 147,20 0,00 50,00 230,15 AWP,PC,SH,SPS,ZZ
Camperdown 207,29 225,00 200,00 195,26 AWP,PC,SA,SPS,ZZ
Ballito 555,78 375,00 500,00 424,92 AWP,PC,SPS,ZZ
Dube Tradeport - - - - PC
Kingsburgh 50,00 - 150,00 - AWP,SF,SPS
Cornubia 314,25 311,80 204,25 292,57 AWP,GI,PC,SA,SPS,ZZ
Ladysmith
Ezakheni/Pieters - - - -
Danskraal - - - - DE
Nambiti - - - - DE
Industrial stand values

Colenso - - - -
 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Rode’s Report 2024:2

Cape Town
Viking Place - - - -
Glosderry - - - - AN,COR
Paarden Eiland/Metro 141,42 0,00 0,00 0,00 AN,AX,COR,DN,WPM
Montague Gardens 141,42 100,00 274,79 163,94 AN,APG,AX,CPS,DN,JB,RIO,SAF,WPM
Marconi Beam - - - - AX,CPS,SAF
Killarney Gardens 276,98 326,68 449,69 - AN,AP,AX,DN
Richmond Park - - - - AN
Racing Park 200,00 200,00 - - AN,AP,JB
Atlantis 275,00 275,00 200,00 200,00 AN,AP
Woodstock/Salt River/Observatory - - - - AN
140

Athlone 1 & 2 - - - -
Lansdowne Nerissa - - - -
Sand Industria - - - -
Ottery Hillstar - - - -
Ottery Sunset - - - -
Diep River - - - - AN
Elfindale - - - -
Monwood/Philippi - - - -
Retreat/Steenberg - - - - AN,COR
Capricorn Park 150,00 - - - AN,COR,SAF
Maitland - 75,00 50,00 - AN,AX,COR,CPS,WPM
Ndabeni - - - - AN,AX
Epping 1 & 2 250,00 250,00 250,00 250,00 AN,APG
WP Park - - - - AN
Elsies River (excl. Central Park) - - - - AN
Parow Beaconvale 1.450,00 1.800,00 2.550,00 - DN,SCM
Industrial stand values

Tygerberg Business Park - - - - DN,SCM

 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Parow Industria 1.450,00 1.800,00 2.550,00 - DN,SCM
Rode’s Report 2024:2

Parow East - - - - SCM

Bellville Oakdale - - - -
Bellville Stikland/Kaymor 354,40 363,32 223,61 - AN,CPS,DN,WD,WPM
Bellville Triangle 232,85 238,48 125,00 108,01 AN,CPS,DN,WPM
Bellville South/Sacks Circle 50,00 50,00 50,00 0,00 AN,CPS,DN
Kraaifontein 300,00 300,00 - - DN,WD
Brackenfell Industria 258,60 258,60 94,28 - AN,DN,WD,WPM
Everite Brackenfell 350,00 350,00 100,00 - AN,DN
Kuils River 150,00 150,00 200,00 100,00 AP,CPS
Blackheath 244,95 242,67 243,24 130,44 AN,AP,COR,CPS,DN,JB,WPM
141

Saxenburg Industrial Park 346,41 346,41 339,93 - AN,AP,DN,CPS

Okavango - - - - WPM
Brackengate/Icon Business Park 0,00 0,00 0,00 - DN,WPM
Paarl - - - - DD
Wellington - - - -
Contermanskloof - - - -
Rivergate 400,00 325,00 260,00 100,00 AN,AP
Airport Ind (north of sewerage farm) - - - -
Airport Ind (west of Borcherds Quarry) - - - - DN
Airport Ind (east of Borcherds Quarry) - - - -
King Air Industrial Park - - - -
Durbanville Industrial Park - - - -
Northgate Industrial Park - - - -
Helderberg
The Interchange - - - -
Helderberg Industrial Park/Broadlands - - - -
Gants - - - -
Industrial stand values
 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Somerset Business Park - - - -
Rode’s Report 2024:2

Georges Park/Onverwacht - - - -
Mansfield - - - -
Firgrove Industrial Estate - - - - AN
Strand Halt - - - -
Asla Park - - - -
Stellenbosch
Plankenbrug - - - -
Devon Valley - - - -
Tenantville - - - -
Klapmuts - - - -
142

Gqeberha
Deal Party - 117,85 117,85 117,85 BR,BV,SUM
North End 0,00 0,00 0,00 0,00 BR,BV,SUM
Korsten/Neave/Sidwell/Sydenham 75,00 102,74 47,14 47,14 BR,BV,SUM
South End Walmer - - - - BV
Kariega: Volkswagen area/NMBLP - 81,65 81,65 92,04 BR,BV,SUM
Kariega: Hella/Kruisrivier 84,98 84,98 84,98 88,98 BR,BV,SUM
Struandale - 102,74 102,74 102,74 BR,BV,SUM
Markman Township 75,00 23,57 0,00 23,57 BR,BV,SUM
Perseverance 47,14 47,14 0,00 23,57 BR,BV,SUM
Walmer 216,02 216,02 125,00 125,00 BR,BV,SUM
Greenbushes Industrial Park 50,00 50,00 - - BV,SUM
Greenbushes (outside industrial park) 131,23 131,23 108,01 108,01 BR,BV,SUM
Fairview 311,80 311,80 125,00 - BR,BV,SUM
Coega SDZ - - - -
Industrial stand values
 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
East London
Rode’s Report 2024:2

Arcadia - - - -
Gately/Woodbrook - - - -
Wilsonia - - - -
Braelyn - - - -
Northend - - - -
Chiselhurst - - - -
Meisies Halt - - - - CAP
Beacon Bay Industrial - - - - CAP
West Bank Industrial Area - - - -
Bloemfontein
143

Hilton - - - - BR,NR
East End 50,00 - - 137,50 BR,EQV,NR
Harvey Road - - - - BR,NR
Old Industrial - - - - BR,NR
Hamilton: Mill St - - - - BR,NR
Hamilton: G Lubbe St - - - - BR,NR
Estoire - - 75,00 115,00 BR,EQV,NR
Quaggafontein - - 175,00 - BR,EQV,NR
George
George Central - - - -
Tamsui Industria - - - -
Pacaltsdorp Industria - - - -
Pietermaritzburg
Willowton - - - - HN
Mkondeni/Shortts Retreat - - - - HN
Camps Drift - - - -
Industrial stand values
 Table 8.3 (continued)
Mean market values for serviced and level industrial stands in quarter 2024:2
(R/m² excl. VAT)
Area size in m²
Panellist codes
1.000 2.000 5.000 10.000
Pietermaritzburg Central - - - -
Rode’s Report 2024:2

Rosedale/Allandale - - - -
Howick - - - -
Lower Umfolozi
Empangeni - - - -
Richards Bay (Alton) - - - -
Richards Bay CBD (Dollar Drive) - - - -
Windhoek
North - - - - PVN
Lafrenz - - - - PVN
South - - - - PVN
144

Prosperita - - - - PVN
Industrial stand values
Rode’s Report 2024:2 145 Flats market

Chapter 9: Flats market

Flat vacancies decline sharply

Kobus Lamprecht

Flat vacancy rates on a national level 2% year on year in the first quarter, based on
averaged 6,7% in the second quarter of 2024, Stats SA data. As rental increases are not
down from 7,9% in the first quarter of 2024, lifting the roof, the data suggests that
according to Rode’s residential survey data property owners or their managers have
(see the chart and Table 9.1). Vacancy rates generally kept rental levels in control to keep
are now below the average 2023 level of properties tenanted.
7,2%.
The Western Cape continued to stand out
Please note that Rode calculates vacancy with its low flat vacancy rate of 2,7% in the
rates based on the number of flats vacant as second quarter of 2024, well below the
a percentage of the total stock managed by national average. Here flat-rental growth was
managing agents. better than in Gauteng at 4,2%. The Western
Cape has the best tenants of all nine
Regionally, Gauteng surprised us with its flat provinces based on first-quarter 2024
vacancy rate declining significantly to 7,1% PayProp data, with only 14,2% of tenants in
from 9,3% in the first quarter of 2024. This arrears. Let’s also remember this is the
was due to lower vacancies in Johannesburg province with the lowest unemployment rate
and Pretoria. Gauteng’s flat rentals grew by in SA.

Source of data: Rode's Time Series

Rode’s Report 2024:2 146 Flats market

Source of data: Stats SA; PayProp

Source of data: PayProp

The decline in national vacancy rates since residential rentals continue to decline in real
their Covid peak of 13% has supported terms after adjusting for inflation (CPI) of just
rental growth. Official data from Stats SA above 5%. Unfortunately, no second-quarter
shows that in the first quarter of 2024 data was available at the time of publishing.
nominal flat rentals in South Africa increased
by 3,6% compared to a year earlier (see the The chart shows the number of tenants
rental chart). Interestingly, PayProp found in arrears as a percentage of the total
rental growth for housing 1 to be 3,8% in the number of tenants on the PayProp system.
same quarter, much slower than the 4,6% in This percentage increased to 18,3% in the first
the fourth quarter of 2023. Note how growth quarter of 2024 from 17% in the fourth
has converged on the chart. This implies that quarter of 2023.

1 “Housing” includes flats.

Rode’s Report 2024:2 147 Flats market

The slower-than-inflation growth in rentals, Economists see the prime rate declining
combined with dipping vacancies and the from the June level of 11,75%, but it is
growing number of tenants in arrears, points important to understand that, over the
to property managers not pushing up asking medium term, rates will remain well above
rentals unduly. the pandemic low prime rate of 7%.
Therefore, a rental market collapse or a
A positive factor for the rental market house price boom is unlikely.
over the short term is still high interest
rates, which will continue to sway some In the tables that follow, we first show
potential buyers to rather rent. However, flat vacancy rates on a regional level,
the probability of local interest rate cuts has followed by the specific rental levels in
risen after rates were lowered in Europe, the suburbs for the various grades of
Canada and many emerging markets. In the flats. Note that the flat-rental data tends
US, markets on 22 July were expecting up to to be erratic in some cases due to small
three cuts before the end of 2024, based on sample sizes. Thus, we advise readers to
data from the CME Group. Eventual declines consider using an average of at least two
in interest rates could see some people quarters to obtain a more stable rental
choose to buy rather than rent. rate.

Table 9.1
Flat vacancies by city/province (%)
Average for all grades
(standard & upmarket combined)
City/Province 24Q1 24Q2
Johannesburg 10,1 6,8
Pretoria 13,0 8,3
Gauteng 9,3 7,1
Durban 13,5 10,9
Pietermaritzburg 2,9 1,5
KwaZulu-Natal 11,2 10,1
East London 12,9 7,5
Gqeberha 3,6 4,1
Eastern Cape 10,4 6,5
Cape Town 2,5 2,9
Stellenbosch 0,0 0,0
George 0,0 0,0
Western Cape 2,3 2,7
Bloemfontein 6,1 6,9
National (weighted and smoothed) 7,9 6,7
Source of data: Rode’s Time Series
 Table 9.2
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Johannesburg - - - -
Rode’s Report 2024:2

City Central R2.987 R187 - - - - - - PPG,TI

Yeoville/Bellevue/Highlands R3.678 - R3.990 R990 - - - - NAN,PPG
Jeppestown/Fordsburg/ Malvern/ - - - - - - - -
Kensington
North-Eastern Suburbs - - - - - - - -
Maraisburg/Crosby/Brixton - - - - - - - -
Meldene (Melville, Westdene, - - - - - - - -
Auckland Park)
Killarney/Illovo - - - - - - - -
Greenside/Victory Park/Linden/ - - - - - - - -
Emmarentia
148

Parkhurst/Parkview - - - - - - - -
Rosebank - - - - - - - -
Randburg: Ferndale/Fontainebleau R4.525 R475 R4.900 R600 R6.733 R94 R8.000 R0 CAR,PRS,TI
Randburg & Suburbs R5.000 - R5.600 R100 R6.800 R0 R8.000 - CAR,TI
Windsor: East/West R4.200 - R5.000 - R6.500 - R8.000 - TI
Craighall/Craighall Park - - - - - - - -
Sandton: North & Far North - - - - - - - -
Sandton: South to Central - - - - - - - -
Bedfordview - - - - - - - -
Old South - - - - - - - -
New South - - - - - - - -
Waterfall - - - - - - - -
CBD Maboneng - - - - - - - -
Houghton Estate - - - - - - - -
Melrose (excl. Melrose Arch) - - - - - - - -
Parktown - - - - - - - -
Flats market
 Table 9.2 (continued)
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Germiston - - - -
Rode’s Report 2024:2

Primrose - - - - - - - -
Germiston Central & South - - - - - - - -
Germiston Southern Suburbs - - - - - - - -
Elsburg - - - - - - - -
Witfield - - - - - - - -
Benoni R4.100 R4.943 R5.775 R7.613
Benoni Central R3.500 - R4.800 - R5.500 - R6.500 - SC
Lakefield R4.500 - R5.500 - R6.000 - R7.500 - SC
Westdene - - - - - - - -
Farrarmere R4.000 - R5.000 - R6.000 - R9.600 - SC
Morehill - - R4.200 - R6.200 - R7.000 - SC
149

Rynfield - - R5.500 - R5.800 - R9.800 - SC

Northmead - - - - R5.800 - R7.500 - SC
Crystal Park R4.500 - R4.800 - R5.700 - R7.000 - SC
Mackenzie Park - - - - - - - -
Western Extension R4.000 - R4.800 - R5.200 - R6.000 - SC
Pretoria R4.187 R5.387 R7.050 R10.236
Akasia R4.500 - R5.200 - R5.828 R28 R6.851 R49 PPG,TR
Pretoria North/Dorandia/Florauna R4.400 - R5.500 - R6.700 - R7.500 - TR
Annlin/Wonderboom/Sinoville/ - - - - - - - -
Montana
Die Moot/Queenswood - - R5.350 R150 - - - - MPR,RIZ
East Lynne/Eersterust - - - - - - - -
Silverton/Meyerspark/La Montagne - - R6.000 R500 R8.110 R1.210 - - RIZ,TR
East (Menlo Park/Ashlea Gardens/ - - R5.980 R520 R9.200 R300 R15.500 R500 RIZ,TR
all Lynnwoods/Die Wilgers/Faerie
Glen/Garsfontein/Constantia/
Flats market

Waterkloof Glen/Erasmuskloof)
 Table 9.2 (continued)
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Pretorius Park - - - - - - - -
Rode’s Report 2024:2

Groenkloof/Brooklyn/Most - - R7.000 - R10.000 - R18.000 - RIZ

Waterkloofs/Erasmusrand
Monument Park - - R6.500 - R9.000 - R14.000 - RIZ
South Eastern Suburbs - - R5.500 - R8.000 - R12.000 - RIZ
Sunnyside R3.200 R700 R3.850 R350 R4.750 R250 R6.400 R600 MPR,TR
Arcadia R4.136 R36 R5.000 - R5.800 - R6.500 - PPG,TR
Pretoria Central R3.500 - R4.000 - R5.350 R150 R7.000 - MPR,TR
Pretoria West R3.800 - R4.200 - R5.100 - R5.800 - TR
Kwaggasrand/West Park - - - - - - - -
Elandspoort/Danville - - - - - - - -
150

Atteridgeville/Laudium - - - - - - - -
Hatfield R5.500 R1.000 R5.850 R650 R7.915 R1.085 R15.000 - RIZ,TR
Centurion R4.960 R5.800 R6.890 R9.317
Pierre van Ryneveld R4.300 - R5.000 - R5.900 - R6.900 - TR
Irene R4.500 - R5.000 - R6.500 - R7.900 - TR
Kloofsig/Lyttelton Manor/ - - R5.950 R250 R7.000 R500 R10.000 - RIZ,TR
Doringkloof/Zwartkop
Highveld and Extensions R5.800 - R6.300 - R7.450 - R10.600 - TR
Clubview/Eldoraigne/Wierda - - R6.250 R550 R7.900 - R12.500 - RIZ,TR
Park/Cranebrook/Bronberrick/
Rooihuiskraal North
Rooihuiskraal/The Reeds - - - - R6.875 R375 - - RIZ,TR
Heuweloord R5.800 - R6.000 - R7.400 - - - TR
Valhalla R4.400 - R5.500 - R6.000 - R8.000 - TR
Flats market
 Table 9.2 (continued)
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Polokwane R3.783 R4.230 R6.583 R9.025
Rode’s Report 2024:2

Eduanpark/Welgelegen R3.950 - - - - - - - SF
Bendor/Bendor extension 1 - - - - R7.000 - R14.000 - SF
Ster Park R3.400 - R4.600 - R5.500 - R6.100 - TG
Flora Park/Fauna Park/ R4.000 - R5.000 - R7.250 - R10.500 - TG
Capricorn
Polokwane Central/Hospitaal - - R3.900 R600 - - R5.500 - SF,TG
Park
Annadale - - R3.750 - - - - - SF
Penina Park/Ivy Park - - - - - - - -
Durban R4.135 R6.113 R7.678 R8.165
Upper highway: Kloof/Hillcrest - - - - - - - -
151

Pinetown area/Queensburgh R4.270 - R5.280 - - - - - TR

Westville area - - - - R9.455 - - - TR
Central City R3.300 - R3.800 - R4.850 - - - TR
Berea/Morningside/Glenwood - - R7.125 - R7.950 - - - TR
South and North Beach - - R7.995 - R8.975 - - - TR
Durban North - - R6.495 - - - - - TR
La Lucia/Greater Umhlanga - - R8.500 - R9.500 - - - TR
North (Dolphin) Coast/Ballito - - - - R8.650 - - - TR
Montclaire/Yellowwood Park - - R4.800 - R6.000 - - - TR
Bluff R4.470 - R5.220 - R6.725 - R7.330 - TR
Amanzimtoti/Warner Beach R4.500 - R5.800 - R7.000 - R9.000 - SF
Cape Town R7.725 R9.085 R10.494 R18.242
Camps Bay/Clifton/Bantry Bay - - R16.500 R3.500 R29.000 R11.000 R43.000 R17.000 JUS,TR
Sea Point/Green Point/Three R9.667 R624 R11.250 R2.250 R14.750 R1.953 R22.500 R4.500 JUS,MAF,SQ,TR
Anchor Bay
Flats market
 Table 9.2 (continued)
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Sea Point/Green Point/Three R9.667 R624 R11.250 R2.250 R14.750 R1.953 R22.500 R4.500 JUS,MAF,SQ,TR
Rode’s Report 2024:2

Anchor Bay
City Bowl (excl. Higgovale) R8.700 R1.200 R12.000 R0 R15.125 R125 R18.000 - SQ,TR
City Centre - - - - - - - -
Waterfront - - - - - - - -
Woodstock/Observatory R6.500 - R7.500 - R8.580 R509 - - MAF,PX,TR
Rondebosch/Rosebank/ R7.333 R850 R7.966 R1.675 R10.750 R990 R13.500 - JA,MAF,PX,SQ,TR,
Claremont VP
Kenilworth/Wynberg/ - - R7.840 R1.174 R11.614 R1.072 - - JA,MAF,PX,SQ,TR
Plumstead
Grassy Park - - - - R8.000 - - - TR
Muizenberg/Kalk Bay/Fish Hoek R7.400 - R8.000 - R10.000 - R13.500 R1.500 JA,TR
152

Hout Bay R10.000 - R12.000 - R16.000 - - - JUS

Century City - - - - - - - -
Milnerton Sanddrift - - - - - - - -
Milnerton Royal Ascot - - - - R10.000 - - - TR,VP
Milnerton Burgundy Estate - - R9.500 - R11.500 R500 R14.500 - TR,VP
Tableview - - - - - - - -
Parklands/Sandown/ - - R5.000 - R8.370 R815 - - LA,PPG,TR
Sunningdale
Bloubergstrand - - R8.000 - - - - - TR
Melkbosstrand - - - - - - - -
Athlone - - - - R7.513 R488 - - LA,TR
Garlandale - - - - - - - -
Rondebosch East/Crawford - - - - R12.000 - R15.730 - PX
Mitchells Plain - - - - - - - -
Bishop Lavis - - - - - - - -
Montana/Belhar - - - - - - - -
Flats market
 Table 9.2 (continued)
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Pinelands - - - - - - - -
Rode’s Report 2024:2

Brooklyn/Rugby/Maitland - - R6.125 R125 R7.700 R200 - - SQ,TR

Monte Vista/Goodwood/ - - R5.750 - R7.052 R1.453 - - LA,MAF,TR
Parow/Bellville Central
Tyger Valley area - - - - R10.000 - - - LA
Durbanville - - - - - - - -
Brackenfell/Kuils River R5.500 - R6.000 - R7.250 R250 R10.000 - CIR,LA
Somerset West - - - - R8.000 - R11.500 - LA,TR
Strand - - - - R8.750 R750 - - LA,SQ,TR
Gordon's Bay - - - - R7.250 R250 - - LA,MAF
Kraaifontein (excl. Buh-Rein) - - - - R7.200 - R13.900 - LA
153

Buh-Rein Estate - - - - R8.100 R900 - - LA,TR

Paarl R5.175 R325 R6.400 R500 R6.875 R540 R9.250 R250 JUS,LA,PRU,TR
Wellington - - - - - - - -
Stellenbosch - - - -
Cloetesville - - - - - - - -
Onder Papegaaiberg - - - - - - - -
Simonswyk - - - - - - - -
Idas Valley - - - - - - - -
Uniepark - - - - - - - -
Krigeville - - - - - - - -
Dalsig - - - - - - - -
Kleingeluk - - - - - - - -
Nuutgevonden - - - - - - - -
Nooitgedacht Village - - - - - - - -
Paradyskloof - - - - - - - -
Klein Welgevonden - - - - - - - -
Flats market
 Table 9.2 (continued)
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Campus – Central - - - - - - - -
Rode’s Report 2024:2

Campus – West - - - - - - - -
Campus – North - - - - - - - -
La Colline - - - - - - - -
George R5.625 R6.750 R8.375 R10.000
Heather Park - - - - - - - -
Heatherlands - - - - - - - -
King George Park - - - - - - - -
Dormehl's Drift R5.500 - R6.500 - R9.500 - R11.000 - BVF
George South R5.500 - R6.500 - R7.500 - R9.000 - BVF
George Central R5.500 - R6.500 - R7.500 - R9.000 - BVF
154

Bo-Dorp R6.000 - R7.500 - R9.000 - R11.000 - BVF

Denver Park - - - - - - - -
Loerie Park - - - - - - - -
Protea Park - - - - - - - -
Parkdene - - - - - - - -
Borcherds - - - - - - - -
Lawaaikamp - - - - - - - -
Ballot's View - - - - - - - -
Herolds Bay (excl. Oubaai) - - - - - - - -
Oubaai - - - - - - - -
Gqeberha R4.025 R4.460 R5.430 R6.189
Summerstrand/Humewood/ R5.000 - R5.500 - R6.100 - R7.200 - TR
South End
Walmer R4.000 - R4.800 - R5.850 R350 R6.500 - IPC,TR
Central/North End - - R3.900 R900 - - - - IPC,TR
Flats market
 Table 9.2 (continued)
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Newton Park - - - - - - R7.050 R1.050 IPC,TR
Rode’s Report 2024:2

Westering R4.500 - R5.000 - R6.100 R600 - - IPC,TR

Kabega R4.200 - R4.700 - R5.200 - R6.000 - PPG,TR
Algoa Park R2.000 - R2.500 - R3.000 - R3.700 - TR
Lorraine R4.500 - R5.000 - R5.800 - R6.200 - TR
Sherwood R4.000 - R4.500 - R5.000 - R6.000 - TR
Fairview R4.000 - R4.800 - R5.300 - R6.000 - TR
East London R3.900 R5.500 R6.680 R7.600
Southernwood/Quigney Beach/ R3.900 - R4.750 R750 R6.650 R150 - - ERA,TR
CBD
Berea - - - - - - - -
Cambridge/Amalinda/Haven - - R4.600 - R5.100 - R5.500 - TR
155

Hills
Beacon Bay - - R6.750 R250 R8.000 - R9.700 - ERA,TR
Gonubie - - R5.500 - R7.000 - - - ERA
Cove Rock - - - - - - - -
Nahoon - - R5.400 - - - - - TR
Vincent - - - - - - - -
Bloemfontein R3.857 R4.366 R5.244 R6.139
Bloemfontein CBD R3.425 R75 R3.800 R200 R4.625 R125 R5.500 R0 NR,PLA
Westdene R3.650 R150 R4.350 R150 R5.250 R250 R6.450 R450 NR,PLA
Willows R3.700 R200 R4.100 R200 R4.750 R250 R5.750 R750 NR,PLA
Navalsig R4.000 - R4.400 R200 R4.950 R450 R5.900 R900 NR,PLA
Arboretum R3.850 R150 R4.400 R200 R5.225 R425 - - NR,PLA
Langenhovenpark R4.200 - R4.530 R330 R5.275 R475 R6.425 R1.225 NR,PLA
Bainsvlei R4.250 R250 R4.900 R700 R5.850 R850 R6.200 - NR,PLA
Universitas R3.950 R50 R4.200 - R5.800 R700 R6.500 R500 NR,PLA
Pentagon Park R4.000 - R4.700 - R5.700 - R6.700 - NR
Flats market
 Table 9.2 (continued)
Flat rentals: Standard units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Kimberley R3.900 R5.500 R7.400 R8.100
Rode’s Report 2024:2

Albertynshof R3.500 - R5.500 - R7.000 - R7.500 - PW

Belgravia R3.500 - R5.500 - R7.000 - R7.500 - PW
New Park R3.500 - R5.500 - R7.000 - R7.500 - PW
Eltoro Park R4.500 - R5.500 - R8.000 - R9.000 - PW
Hillcrest R4.500 - R5.500 - R8.000 - R9.000 - PW
Pietermaritzburg R3.600 R5.063 R6.463 R7.900
Woodlands/Northdale/Bombay - - - - - - - -
Heights/Orient Heights/
Allandale
Chase Valley/Oak Park/ - - R5.450 - R6.850 - R8.900 - HN
Chasedene/Northern Park
156

Wembley/Clarendon - - R5.500 - R7.000 - R8.800 - HN

Pietermaritzburg City R3.600 - R4.400 - R5.850 - R6.900 - HN
Prestbury - - R4.900 - R6.150 - R7.000 - HN
Pelham/Scottsville/Richmond - - - - - - - -
Crest/Bisley
Hayfields/Lincoln Meade/ - - - - - - - -
Bellevue/The Meadows
Vanderbijlpark - - - -
Vanderbijlpark Central - - - - - - - -
Vanderbijlpark CE R4.400 - R5.800 - R6.450 - - - DT
Vanderbijlpark SE - - - - - - - -
Vanderbijlpark SW - - - - - - - -
Vanderbijlpark CW - - - - - - - -
Flats market
 Table 9.3
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Johannesburg - - - -
Rode’s Report 2024:2

City Central - - - - - - - -
Yeoville/Bellevue/Highlands - - - - - - - -
Jeppestown/Fordsburg/ Malvern/ - - - - - - - -
Kensington
North-Eastern Suburbs - - - - - - - -
Maraisburg/Crosby/Brixton - - - - - - - -
Meldene (Melville, Westdene, - - - - - - - -
Auckland Park)
Killarney/Illovo - - - - - - - -
Greenside/Victory Park/Linden/ - - - - - - - -
Emmarentia
157

Parkhurst/Parkview - - - - - - - -
Rosebank - - - - - - - -
Randburg: Ferndale/ R6.000 - R6.500 - R7.500 R300 R8.500 - CAR,PRS
Fontainebleau
Randburg & Suburbs R6.000 - R6.500 - R7.283 R83 R8.500 - CAR,PPG
Windsor: East/West - - - - - - - -
Craighall/Craighall Park - - - - - - - -
Sandton: North & Far North - - - - - - - -
Sandton: South to Central - - - - - - - -
Bedfordview - - - - - - - -
Old South - - - - - - - -
New South - - - - - - - -
Waterfall - - - - - - - -
CBD Maboneng - - - - - - - -
Houghton Estate - - - - - - - -
Flats market
 Table 9.3 (continued)
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Melrose Arch - - - - - - - -
Rode’s Report 2024:2

Melrose (excl. Melrose Arch) - - - - - - - -

Parktown - - - - - - - -
Germiston - - - -
Primrose - - - - R4.776 - R5.775 - PH
Germiston Central & South - - - - - - - -
Germiston Southern Suburbs - - - - - - - -
Elsburg - - - - - - - -
Witfield - - - - - - - -
Benoni R4.500 R5.229 R7.138 R8.925
Benoni Central R4.000 - R5.000 - R6.000 - R7.000 - SC
158

Lakefield R5.000 - R5.800 - R6.500 - R10.000 - SC

Westdene - - - - - - - -
Farrarmere R4.500 - R5.500 - R9.700 - R10.500 - SC
Morehill - - R4.500 - R6.800 - R7.200 - SC
Rynfield - - R5.800 - R9.300 - R10.500 - SC
Northmead - - - - R6.500 - R12.500 - SC
Crystal Park - - R5.000 - R6.800 - R7.200 - SC
Mackenzie Park - - - - - - - -
Western Extension R4.500 - R5.000 - R5.500 - R6.500 - SC
Pretoria - - - -
Akasia - - - - - - - -
Pretoria North/Dorandia/ - - - - - - - -
Florauna
Annlin/Wonderboom/Sinoville/ - - - - - - - -
Montana
Die Moot/Queenswood - - - - - - - -
Flats market
 Table 9.3 (continued)
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
East Lynne/Eersterust - - - - - - - -
Rode’s Report 2024:2

Silverton/Meyerspark/La Montagne - - - - - - - -
East (Menlo Park/Ashlea Gardens/ - - - - R12.000 - R18.500 - RIZ
all Lynnwoods/Die Wilgers/Faerie
Glen/Garsfontein/ Constantia/
Waterkloof Glen/ Erasmuskloof)
Pretorius Park - - - - - - - -
Groenkloof/Brooklyn/Most - - - - R15.000 - R20.000 - RIZ
Waterkloofs/Erasmusrand
Monument Park - - - - - - - -
South Eastern Suburbs - - - - - - - -
Sunnyside - - - - - - - -
159

Arcadia - - - - - - - -
Pretoria Central - - - - - - - -
Pretoria West - - - - - - - -
Kwaggasrand/West Park - - - - - - - -
Elandspoort/Danville - - - - - - - -
Atteridgeville/Laudium - - - - - - - -
Hatfield - - R8.000 - R10.000 - R20.000 - RIZ
Centurion - - - -
Pierre van Ryneveld - - - - - - - -
Irene - - - - - - - -
Kloofsig/Lyttelton Manor/ - - - - - - - -
Doringkloof/Zwartkop
Highveld and Extensions - - - - - - - -
Clubview/Eldoraigne/Wierda Park/ - - - - - - - -
Cranebrook/Bronberrick/
Rooihuiskraal North
Flats market
 Table 9.3 (continued)
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rooihuiskraal/The Reeds - - - - - - - -
Rode’s Report 2024:2

Heuweloord - - - - - - - -
Valhalla - - - - - - - -
Polokwane - - - -
Eduanpark/Welgelegen - - - - - - - -
Bendor/Bendor extension 1 - - - - - - - -
Ster Park - - - - - - - -
Flora Park/Fauna Park/Capricorn - - - - - - - -
Polokwane Central/Hospitaal Park - - R4.700 - R5.800 - R7.250 - TG
Annadale - - - - - - - -
Penina Park/Ivy Park - - - - - - - -
160

Durban - - - -
Upper highway: Kloof/Hillcrest - - - - - - - -
Pinetown area/Queensburgh - - - - R7.400 - - - TR
Westville area - - - - - - - -
Central City - - - - - - - -
Berea/Morningside/Glenwood - - R8.150 - R8.300 - - - TR
South and North Beach - - - - - - - -
Durban North - - - - - - - -
La Lucia/Greater Umhlanga - - - - - - - -
North (Dolphin) Coast/Ballito - - - - - - R15.000 - TR
Montclaire/Yellowwood Park - - - - - - - -
Bluff - - - - - - - -
Amanzimtoti/Warner Beach R5.500 - R6.750 - R8.700 - R11.500 - SF
Flats market
 Table 9.3 (continued)
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Cape Town - - - -
Rode’s Report 2024:2

Camps Bay/Clifton/Bantry Bay R35.000 - R40.000 - R75.000 - R120.000 - JUS

Sea Point/Green Point/Three R12.000 - - - R35.000 - R55.000 - JUS
Anchor Bay
City Bowl (excl. Higgovale) - - - - - - - -
City Centre - - - - R27.000 R7.000 - - LA,TR
Waterfront - - - - - - - -
Woodstock/Observatory - - - - R12.000 - - - TR
Rondebosch/Rosebank/Claremont R8.250 R250 R11.250 R1.250 R15.000 R816 R18.000 R2.000 JA,TR,VP
Kenilworth/Wynberg/Plumstead R9.000 - R11.000 - R13.000 - R14.000 - JA
Grassy Park - - - - - - - -
161

Muizenberg/Kalk Bay/Fish Hoek R9.000 - R10.000 - R15.000 - R25.000 - JA

Hout Bay R13.000 - R14.000 - R22.000 R2.000 - - JUS,TR
Century City - - - - - - - -
Milnerton Sanddrift - - - - R12.800 - - - LA
Milnerton Royal Ascot - - - - - - - -
Milnerton Burgundy Estate - - R9.700 - R14.000 - R18.500 - VP
Tableview - - - - - - - -
Parklands/Sandown/Sunningdale - - - - - - - -
Bloubergstrand - - - - - - - -
Melkbosstrand - - - - - - R10.000 - LA
Athlone - - - - - - - -
Garlandale - - - - - - - -
Rondebosch East/Crawford - - - - - - - -
Mitchells Plain - - - - - - - -
Bishop Lavis - - - - - - - -
Montana/Belhar - - - - - - - -
Flats market
 Table 9.3 (continued)
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Pinelands - - - - - - - -
Rode’s Report 2024:2

Brooklyn/Rugby/Maitland - - - - - - - -
Monte Vista/Goodwood/Parow/ - - - - R10.000 - R13.000 - LA
Bellville Central
Tyger Valley area - - - - R12.000 - R20.000 - LA
Durbanville - - - - - - - -
Brackenfell/Kuils River - - - - R10.750 R2.250 - - LA,MAF
Somerset West - - R9.000 - R12.000 - R17.000 - MAF
Strand - - - - - - - -
Gordon's Bay - - - - - - - -
Kraaifontein (excl. Buh-Rein) - - - - R8.000 - - - LA
162

Buh-Rein Estate - - - - - - - -
Paarl R7.500 R1.500 R9.250 R2.750 R12.050 R2.950 R14.500 R2.500 JUS,PRU
Wellington - - - - - - - -
Stellenbosch - - - -
Cloetesville - - - - - - - -
Onder Papegaaiberg - - - - - - - -
Simonswyk - - - - - - - -
Idas Valley - - - - - - - -
Uniepark - - - - - - - -
Krigeville - - - - - - - -
Dalsig - - - - - - - -
Kleingeluk - - - - - - - -
Nuutgevonden - - - - - - - -
Nooitgedacht Village - - - - - - - -
Paradyskloof - - - - - - - -
Klein Welgevonden - - - - - - - -
Flats market
 Table 9.3 (continued)
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Campus - Central - - - - - - - -
Rode’s Report 2024:2

Campus - West - - - - - - - -
Campus - North - - - - - - - -
La Colline - - - - - - - -
George - - - -
Heather Park - - - - - - - -
Heatherlands - - - - - - - -
King George Park - - - - - - - -
Dormehl's Drift R7.000 - R8.500 - R11.000 - R14.000 - BVF
George South - - - - - - - -
George Central - - - - - - - -
163

Bo-Dorp - - - - - - - -
Denver Park - - - - - - - -
Loerie Park - - - - - - - -
Protea Park - - - - - - - -
Parkdene - - - - - - - -
Borcherds - - - - - - - -
Lawaaikamp - - - - - - - -
Ballot's View - - - - - - - -
Herolds Bay (excl. Oubaai) - - - - - - - -
Oubaai - - - - - - - -
Gqeberha R4.257 R4.700 R5.945 -
Summerstrand/Humewood/ R5.300 - R5.800 - R6.500 - R7.500 - TR
South End
Walmer - - - - R6.700 R700 - - IPC,TR
Central/North End - - R4.300 R1.100 - - - - IPC,TR
Newton Park R3.800 - R4.900 - R5.500 - - - TR
Flats market
 Table 9.3 (continued)
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Westering - - - - R6.800 R800 - - IPC,TR
Rode’s Report 2024:2

Kabega R4.500 - R5.000 - R5.700 - R6.500 - TR

Algoa Park R2.400 - R2.800 - R3.400 - R4.000 - TR
Lorraine R5.000 - R5.300 - R6.200 - R6.500 - TR
Sherwood R4.300 - R4.800 - R5.300 - R6.300 - TR
Fairview R4.500 - R5.100 - R5.800 - R6.500 - TR
East London - - - -
Southernwood/Quigney Beach/ - - R4.750 - R7.000 - - - TR
CBD
Berea - - - - R7.500 - - - TR
Cambridge/Amalinda/Haven Hills - - - - R6.300 - - - TR
164

Beacon Bay - - R8.500 - - - - - TR

Gonubie - - - - - - - -
Cove Rock - - - - - - - -
Nahoon - - - - - - - -
Vincent - - - - - - - -
Bloemfontein R4.140 R4.725 R5.900 R7.333
Bloemfontein CBD R3.700 - R4.150 - R5.000 - R6.000 - NR
Westdene R4.150 R150 R4.750 R250 R6.000 R500 R7.450 R450 NR,PLA
Willows R4.100 - R4.500 R300 R5.400 R400 R6.000 - NR,PLA
Navalsig R4.200 - R4.750 R250 R5.750 R250 - - NR,PLA
Arboretum R4.200 - R4.500 - R5.750 R250 - - NR,PLA
Langenhovenpark R4.400 - R4.900 R400 R6.650 R150 R8.450 R50 NR,PLA
Bainsvlei R4.100 - R5.150 R650 R5.950 R950 R7.500 - NR,PLA
Universitas R4.100 - R4.500 - R6.000 - R7.000 - NR
Pentagon Park R4.300 - R4.900 - R6.500 - R7.700 - NR
Flats market
 Table 9.3 (continued)
Flat rentals: Upmarket units
Average rands per month as at quarter 2024:2
Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Kimberley - - - -
Rode’s Report 2024:2

Albertynshof - - - - - - - -
Belgravia - - - - - - - -
New Park - - - - - - - -
Eltoro Park - - - - - - - -
Hillcrest - - - - - - - -
Pietermaritzburg - - - -
Woodlands/Northdale/Bombay - - - - - - - -
Heights/Orient Heights/Allandale
Chase Valley/Oak Park/ - - R6.500 - R7.250 - R9.800 - HN
Chasedene/Northern Park
Wembley/Clarendon - - R6.500 - R8.050 - R10.000 - HN
165

Pietermaritzburg City - - - - - - - -
Prestbury - - - - - - - -
Pelham/Scottsville/Richmond - - - - - - - -
Crest/Bisley
Hayfields/Lincoln Meade/ - - - - - - - -
Bellevue/The Meadows
Vanderbijlpark - - - -
Vanderbijlpark Central - - - - - - - -
Vanderbijlpark CE - - - - - - - -
Vanderbijlpark SE - - - - - - - -
Vanderbijlpark SW - - - - - - - -
Vanderbijlpark CW - - - - - - - -
Flats market
 Table 9.4
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Johannesburg - - - -
City Central - - - - - - - -
Yeoville/Bellevue/Highlands - - - - - - -
Jeppestown/Fordsburg/Malvern/ - - - - - - - -
Kensington
North-Eastern Suburbs - - - - - - - -
Maraisburg/Crosby/Brixton - - - - - - - -
Meldene (Melville, Westdene, - - - - - - - -
Auckland Park)
Killarney/Illovo - - - - - - - -
Greenside/Victory Park/Linden/ - - - - - - - -
166

Emmarentia
Parkhurst/Parkview - - - - - - - -
Rosebank - - - - - - - -
Randburg: Ferndale/Fontainebleau - - R250 - R400 - R350 - CAR
Randburg & Suburbs - - R250 - R400 - R350 - CAR
Windsor: East/West - - R200 - - - - - TI
Craighall/Craighall Park - - - - - - - -
Sandton: North & Far North - - - - - - - -
Sandton: South to Central - - - - - - - -
Bedfordview - - - - - - - -
Old South - - - - - - - -
New South - - - - - - - -
Waterfall - - - - - - - -
CBD Maboneng - - - - - - - -
Houghton Estate - - - - - - - -
Flats market
 Table 9.4 (continued)
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Melrose Arch - - - - - - - -
Melrose (excl. Melrose Arch) - - - - - - - -
Parktown - - - - - - - -
Germiston - - - -
Primrose - - - - - - - -
Germiston Central & South - - - - - - - -
Germiston Southern Suburbs - - - - - - - -
Elsburg - - - - - - - -
Witfield - - - - - - - -
Benoni - - - -
Benoni Central - - - - - - - -
167

Lakefield - - - - - - - -
Westdene - - - - - - - -
Farrarmere - - - - - - - -
Morehill - - - - - - - -
Rynfield R200 - - - - - - - SC
Northmead - - - - - - - -
Crystal Park - - - - - - - -
Mackenzie Park - - - - - - - -
Western Extension - - - - - - - -
Pretoria - - - -
Akasia - - - - - - - -
Pretoria North/Dorandia/Florauna - - - - - - - -
Annlin/Wonderboom/Sinoville/ - - - - - - - -
Montana
Die Moot/Queenswood - - - - - - - -
East Lynne/Eersterust - - - - - - - -
Flats market
 Table 9.4 (continued)
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Silverton/Meyerspark/La Montagne - - - - - - - -
East (Menlo Park/Ashlea Gardens/ - - - - - - - -
all Lynnwoods/Die Wilgers/Faerie
Glen/Garsfontein/Constantia/
Waterkloof Glen/Erasmuskloof)
Pretorius Park - - - - - - - -
Groenkloof/Brooklyn/Most - - - - - - - -
Waterkloofs/Erasmusrand
Monument Park - - - - - - - -
South Eastern Suburbs - - - - - - - -
Sunnyside - - - - - - - -
Arcadia - - - - - - - -
168

Pretoria Central - - - - - - - -
Pretoria West - - - - - - - -
Kwaggasrand/West Park - - - - - - - -
Elandspoort/Danville - - - - - - - -
Atteridgeville/Laudium - - - - - - - -
Hatfield - - - - - - - -
Centurion - - - -
Pierre van Ryneveld - - - - - - - -
Irene - - - - - - - -
Kloofsig/Lyttelton Manor/ - - - - - - - -
Doringkloof/Zwartkop
Highveld and Extensions - - - - - - - -
Clubview/Eldoraigne/Wierda Park/ - - - - - - - -
Cranebrook/Bronberrick/
Rooihuiskraal North
Flats market
 Table 9.4 (continued)
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Rooihuiskraal/The Reeds - - - - - - - -
Heuweloord - - - - - - - -
Valhalla - - - - - - - -
Polokwane - - - -
Eduanpark/Welgelegen - - - - - - - -
Bendor/Bendor extension 1 - - - - - - - -
Ster Park - - - - - - - -
Flora Park/Fauna Park/Capricorn - - - - - - - -
Polokwane Central/Hospitaal - - - - - - - -
Park
Annadale - - - - - - - -
169

Penina Park/Ivy Park - - - - - - - -

Durban R261 R313 R525 -
Upper highway: Kloof/Hillcrest - - - - - - - -
Pinetown area/Queensburgh R225 - R315 - - - - - TR
Westville area - - - - - - - -
Central City - - - - - - - -
Berea/Morningside/Glenwood R325 - R355 - R450 - - - TR
South and North Beach R325 - - - - - - - TR
Durban North R300 - - - - - - - TR
La Lucia/Greater Umhlanga - - - - - - - -
North (Dolphin) Coast/Ballito - - - - - - - -
Montclaire/Yellowwood Park - - - - - - - -
Bluff R200 - - - - - - - TR
Amanzimtoti/Warner Beach R228 R78 R270 - R600 - R300 - SF,TR
Flats market
 Table 9.4 (continued)
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Cape Town R458 - R750 -

Camps Bay/Clifton/Bantry Bay R650 - - - R900 - - - TR
Sea Point/Green Point/Three R650 - - - R967 R47 - - MAF,SQ,TR
Anchor Bay
City Bowl (excl. Higgovale) R450 - - - R650 - - - TR
City Centre - - - - - - - -
Waterfront - - - - - - - -
Woodstock/Observatory R325 R75 - - - - - - MAF,TR
Rondebosch/Rosebank/Claremont R250 - - - R575 R75 - - MAF,SQ
Kenilworth/Wynberg/Plumstead R483 R184 - - R650 R150 - - JA,MAF,SQ
Grassy Park - - - - - - - -
170

Muizenberg/Kalk Bay/Fish Hoek - - - - - - - -

Hout Bay - - - - - - - -
Century City - - - - - - - -
Milnerton Sanddrift - - - - - - - -
Milnerton Royal Ascot - - - - - - - -
Milnerton Burgundy Estate - - - - - - - -
Tableview - - - - - - - -
Parklands/Sandown/Sunningdale - - - - - - - -
Bloubergstrand - - - - - - - -
Melkbosstrand - - - - - - - -
Athlone - - - - - - - -
Garlandale - - - - - - - -
Rondebosch East/Crawford - - - - - - - -
Mitchells Plain - - - - - - - -
Bishop Lavis - - - - - - - -
Montana/Belhar - - - - - - - -
Pinelands - - - - - - - -
Flats market
 Table 9.4 (continued)
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Brooklyn/Rugby/Maitland - - - - - - - -
Monte Vista/Goodwood/Parow/ R450 - - - - - - - SQ
Bellville Central
Tyger Valley area - - - - - - - -
Durbanville - - - - - - - -
Brackenfell/Kuils River - - - - - - - -
Somerset West - - - - - - - -
Strand - - - - R650 - - - SQ
Gordon's Bay - - - - - - - -
Kraaifontein (excl. Buh-Rein) - - - - - - - -
Buh-Rein Estate - - - - - - - -
Paarl R300 - R350 - R700 - R350 - JUS
171

Wellington - - - - - - - -
Stellenbosch - - - -
Cloetesville - - - - - - - -
Onder Papegaaiberg - - - - - - - -
Simonswyk - - - - - - - -
Idas Valley - - - - - - - -
Uniepark - - - - - - - -
Krigeville - - - - - - - -
Dalsig - - - - - - - -
Kleingeluk - - - - - - - -
Nuutgevonden - - - - - - - -
Nooitgedacht Village - - - - - - - -
Paradyskloof - - - - - - - -
Klein Welgevonden - - - - - - - -
Campus – Central - - - - - - - -
Flats market
 Table 9.4 (continued)
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Campus – West - - - - - - - -
Campus – North - - - - - - - -
La Colline - - - - - - - -
George - - - -
Heather Park - - - - - - - -
Heatherlands - - - - - - - -
King George Park - - - - - - - -
Dormehl's Drift - - - - - - - -
George South - - - - - - - -
George Central - - - - - - - -
Bo-Dorp - - - - - - - -
172

Denver Park - - - - - - - -
Loerie Park - - - - - - - -
Protea Park - - - - - - - -
Parkdene - - - - - - - -
Borcherds - - - - - - - -
Lawaaikamp - - - - - - - -
Ballot's View - - - - - - - -
Herolds Bay (excl. Oubaai) - - - - - - - -
Oubaai - - - - - - - -
Gqeberha R225 R245 - -
Summerstrand/Humewood/South R300 - R300 - - - - - TR
End
Walmer R250 - R300 - - - - - TR
Central/North End R200 - R250 - - - - - TR
Newton Park R200 - R250 - - - - - TR
Westering R250 - R250 - - - - - TR
Flats market
 Table 9.4 (continued)
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Kabega R250 - R250 - - - - - TR

Algoa Park R150 - R150 - - - - - TR
Lorraine R250 - R250 - - - - - TR
Sherwood R250 - R250 - - - - - TR
Fairview R150 - R200 - - - - - TR
East London - - - -
Southernwood/Quigney Beach/CBD - - - - - - - -
Berea - - - - - - - -
Cambridge/Amalinda/Haven Hills - - - - - - - -
Beacon Bay - - - - - - - -
Gonubie - - - - - - - -
173

Cove Rock - - - - - - - -
Nahoon - - - - - - - -
Vincent - - - - - - - -
Bloemfontein R275 R325 R376 -
Bloemfontein CBD R200 - R250 - R250 - R250 - NR
Westdene R300 - R350 - R500 - R500 - NR,PLA
Willows R200 - R250 - - - - - NR
Navalsig R200 - R250 - - - - - NR,PLA
Arboretum - - - - R255 R145 - - NR,PLA
Langenhovenpark R300 - R350 - R450 - R450 - NR
Bainsvlei R350 - R400 - R450 - - - NR
Universitas R300 - R350 - R400 - - - NR
Pentagon Park R350 - R400 - R450 - - - NR
Kimberley - - - -
Albertynshof - - - - - - - -
Flats market
 Table 9.4 (continued)
Flat: Parking rentals
Average rands per month as at quarter 2024:2
Open Covered Lockup Basement
Panellist codes
Mean SD Mean SD Mean SD Mean SD
Rode’s Report 2024:2

Belgravia - - - - - - - -
New Park - - - - - - - -
Eltoro Park - - - - - - - -
Hillcrest - - - - - - - -
Pietermaritzburg - R323 R412 R402
Woodlands/Northdale/Bombay - - - - - - - -
Heights/Orient Heights/Allandale
Chase Valley/Oak Park/Chasedene/ - - R380 - R480 - R480 - HN
Northern Park
Wembley/Clarendon - - R360 - R450 - R450 - HN
Pietermaritzburg City - - R340 - R450 - R440 - HN
Prestbury - - R280 - R360 - R340 - HN
174

Pelham/Scottsville/Richmond Crest/ - - R285 - R350 - R340 - HN

Bisley
Hayfields/Lincoln Meade/ Bellevue/ - - R290 - R380 - R360 - HN
The Meadows
Vanderbijlpark - - - -
Vanderbijlpark Central - - - - - - - -
Vanderbijlpark CE - - - - R400 - - - DT
Vanderbijlpark SE - - - - - - - -
Vanderbijlpark SW - - - - - - - -
Vanderbijlpark CW - - - - - - - -
Flats market
Rode’s Report 2024:2 175 Panellist logos

Our heartfelt thanks to the companies that contributed to the residential-market

survey. By clicking on their logos, you will learn more about these panellists.
Rode’s Report 2024:2 176 House market

House price outlook improves

Kobus Lamprecht

Change in nominal house prices in South Africa

%
40

35

30

25

20

15

10

0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
24 YTD
-5

Source of data: FNB

House prices in South Africa are still growing few months. However, we have turned
at less than inflation amid a weak economy cautiously optimistic about prospects for
and elevated interest rates. 2025 as local interest rates are expected
to start declining before the end of this
Nominal house prices grew by 0,4% in the year and move even lower in 2025. Economic
second quarter of 2024 compared to the growth is also seen to be somewhat better
second quarter of 2023, based on FNB data. than before.
Growth for the first half of 2024 was only
0,6%, as shown on the chart. Note the slowing However, do not expect a mini-boom like
trend over the past few years. This implies during the pandemic as the prime rate is not
that prices in real terms have continued to expected to fall as low, while many of South
fall significantly as the average consumer Africa’s problems will take a long time to fix −
inflation (CPI) rate was just above 5%. Thus, in some a generation or two.
2024 real house prices will likely fall for the
ninth consecutive year. In the text below, we briefly discuss the
drivers of changes in house prices, before
Looking ahead, we expect house price growth looking at how interest rates and the
to remain under pressure over the next economy affect the housing market.
Rode’s Report 2024:2 177 House market

Drivers of changes in probably as interest rates have also moved

house prices sideways since May 2023.

House prices correlate somewhat with the Regarding the chart, note the spike in
value of residential mortgages granted, with 2020/21 thanks to the drastic lowering
r² = 0,3 − as shown on the chart. This means of the prime interest rate to a record-
the value of mortgages granted explains low 7% and the consequent release of
about 30% of changes in house prices, pent-up demand after the Covid-related hard
without controlling for other determinants. lockdown. Also note the spike in mortgage
The implication is that house prices tend to loans in 2010, which can also be attributed to
do better during periods of high churn a drastic lowering of interest rates. In 2009,
(when estate agents and conveyancers also the prime rate still averaged 11,7%, dropping
do well). to 9,8% in 2010. However, it was a sharp,
short spike, with mortgage bonds granted
The question is, what comes first: the plummeting into negative territory in 2011
higher number of sales (thereby accelerating but rising again to more normal territory from
mortgage bonds granted) or the accelerating 2012 onwards, even though interest rates
prices? stayed at the new-low level of about 9%. A
similar type of scenario is playing out now.
Thus, the spikes in 2010 and 2020/21 can be
Change in national house prices (FNB)
vs
Change in value of new mortgage loans
50
r²=0,3
160
attributed to pent-up demand being taken up
40 120 fully in a short period.
Change in new mortgage loans

30 80
Change in house prices

It is worth looking at the results of FNB’s

(%; y-o-y)
(%; y-o-y)

20 40

10 0
second-quarter 2024 residential survey
data. FNB asked estate agents to rate sales
activity from 1 to 10. Based on this metric,
0 -40

House prices
Mortgage loans (smoothed)

activity in the residential market lost a bit of

-10 -80
02 04 06 08 10 12 14 16 18 20 22

momentum in the second quarter of 2024.

Source of data: FNB; SARB

Activity was rated 5,6 − slightly down from 5,8

From the chart, it seems they differ from time in the first quarter. This is indicative of a slow
to time but on average they tend to coincide. market.

The nominal value of residential mortgages Note the slowdown since the pandemic peak
granted fell by 4,6% in the first quarter of of 7,1 in the fourth quarter of 2020. This peak
2024 compared to the first quarter of 2023. was of course created by the significant cut in
This comes after this metric fell by 19,7% interest rates, but the trend has reversed as
for the full 2023. But note on the chart the the prime interest rate rose to 11,75%. That
declines have become smaller since the said, activity has recovered somewhat after
third quarter of 2023. This suggests that reaching a low of 5,1 in the second quarter of
the market has stabilised at weak levels, 2023.
Rode’s Report 2024:2 178 House market

Estate agents' rating of SA sales activity (1 to 10)

8,0
7,5
Peak of 7.1
7,0
6,5 Long-term
6,0 avg
5,5
5,0
4,5
4,0
3,5
3,0
4Q04
3Q05
2Q06
1Q07
4Q07
3Q08
2Q09
1Q10
4Q10
3Q11
2Q12
1Q13
4Q13
3Q14
2Q15
1Q16
4Q16
3Q17
2Q18
1Q19
4Q19
3Q20
2Q21
1Q22
4Q22
3Q23
2Q24
Source of data: FNB

Estate agents' rating of sales activity (1 to 10) by

major province
7,0
6,0
5,0
4,0
3,0
2,0
1,0
0,0
Gauteng Western Cape Eastern Cape KwaZulu-Natal South Africa

23Q2 24Q2

Source of data: FNB

Regionally, activity in the second quarter highest, even surpassing the Western
of 2024 was rated higher in all four Cape. Activity in Gauteng has improved
provinces compared to the second quarter somewhat over the past year but remains
of 2023, as shown on the chart. Activity the weakest of the provinces surveyed by
in the Eastern Cape was surprisingly the FNB.
Rode’s Report 2024:2 179 House market

Time on market in weeks

Weeks
23
21
19
17
15
13 Long-term
avg
11
9
7 Low of 7,6 weeks
5
3
4Q04
3Q05
2Q06
1Q07
4Q07
3Q08
2Q09
1Q10
4Q10
3Q11
2Q12
1Q13
4Q13
3Q14
2Q15
1Q16
4Q16
3Q17
2Q18
1Q19
4Q19
3Q20
2Q21
1Q22
4Q22
3Q23
2Q24
Source of data: FNB

Time on market in weeks

by major province
16,0
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
Gauteng Western Cape Eastern Cape KwaZulu-Natal South Africa

23Q2 24Q2

Source of data: FNB

Worryingly, the time that houses are on the However, houses were on the market
market nationally rose in the second quarter for about the same duration as in the
of 2024. This indicator averaged 12,2 weeks second quarter of 2023, as shown on the
(i.e. 12 weeks and 2 days) in the second second chart. Provincially, the Western Cape
quarter of 2024, up from 10,6 weeks in the again stands out with houses selling in 8
first quarter. It is just below the long-term weeks, somewhat better than a year ago. In
average of about 13 weeks. We found an the other provinces, the average is close
inverse correlation of 30% between ‘time on to 13 weeks. Gauteng again performed the
the market’ and ‘activity’ (number of deals). worst.
Rode’s Report 2024:2 180 House market

Turning to the outlook for the housing the new government, better electricity supply
market, a significantly correlated variable of and the interest-rate cycle turning around.
residential mortgages granted is the leading
business cycle indicator of the SARB, with The BER expects the prime rate to start
r² = 0,6. This indicator reflects early stirrings declining in September and end 2025 at
in the economy, thus confirming that the 10,75% from the current level of 11,75%,
fundamental driver of house prices is ‘the which bodes well for house prices. However,
economy, stupid’. The indicator increased do not expect a mini-boom like during the
slightly off a low base in April 2024 after pandemic as the prime rate will not fall
having been in negative territory for two as far as 7%. Furthermore, many of South
years. This was due to the electricity supply Africa’s problems will take long to fix.
crisis, logistical bottlenecks, and central banks
‘normalizing’ interest rates, among other Examples are:
factors. The downturn in this indicator does
not bode well for mortgage demand soon • Poor quality of education (a structural
unless the SARB drops interest rates, which in problem that will not go away any
turn depends on the movement in inflation. time soon)
• Too few taxpayers relative to the
Change in value of new residential mortgages granted
vs
population and a tax intake that may
Change in composite business cycle leading indicator

r²=0,6
60 be at the apex of the Laffer curve 1
• Structurally high unemployment
Change in business cycle indicator

40

• Mismanagement of the state’s three

150
(%; y-o-y)
Change in value of mortgages granted

20

tiers of government and SOEs,

100
0
(%; y-o-y)

50

0
-20 resulting in, among other things, the
-50 Mortgage loans (smoothed)
rail and port crisis and dysfunctional
local authorities.
Business cycle leading indicator

-100
06 08 10 12 14 16 18 20 22 24

Source of data: SARB

It also remains to be seen how well the parties

However, looking ahead, the BER at in the National Government of Unity will work
Stellenbosch University said in July that it together. So far so good.
expects economic growth to lift to 2,2% in
2025, up from its 1% forecast for 2024. This Rode’s six-year forecasts of house prices
is an upgrade on its April forecast of 1,6% and flat rentals are provided in our sister
growth for 2025. It reflects optimism about publication Rode’s SA Property Trends.

1 In economics, the Laffer curve illustrates a theoretical relationship between rates of taxation and the resulting levels of the
government's tax revenue. The Laffer curve assumes that no tax revenue is raised at the extreme tax rates of 0% and 100%, meaning
that there is a tax rate between 0% and 100% that maximizes government tax revenue. Source: Investopedia
Rode’s Report 2024:2 181 Building activity and building costs

Chapter 11: Building activity and building-construction cost

Industrial building-construction
activity the only positive story
Kobus Lamprecht

This chapter reveals that property 2024 due to persistent house price weakness
construction activity has continued to trend and high interest rates.
downward thus far in 2024 and is still well
below historical levels. Significant factors Encouragingly, it looks more certain now
affecting all building activity are anaemic that the first local interest rate cut could
economic growth, unreliable power supply, well occur before the end of 2024, with
weak property fundamentals, high building- more easing to follow in 2025. Some
cost inflation and elevated interest rates. economists (like the BER at Stellenbosch
Naturally, little new supply, if sustained, will University) have upgraded their view of
ultimately lead to a rebalancing of demand economic growth for 2025 to around 2%,
and supply. which is an improvement from the roughly 1%
expected in 2023. This could bring some relief
As for non-residential building activity, for the property industry and, with a lag,
the main drag over the past few years support building activity from the current low
has come from office construction as it is levels.
fundamentally in the worst shape. It showed
a huge decline over the first five months of At the end of this chapter, we report on
2024. building contractors’ profit margins that
continue to look better as measured by
Industrial building activity has been the the BER’s Building Cost Index (BER BCI).
exception, with activity up sharply thus However, the strong growth in the BCI will
far in 2024. This is, after all, the sector that no doubt hold back future building activity
is in the best shape. Several of Rode’s as the BCI is outpacing, by a wide margin,
survey respondents have mentioned that the growth in market rentals, thereby
they are experiencing a shortage of existing undermining financial viability.
or brownfield industrial space. Therefore,
greenfield developments are in demand. Our detailed discussion of trends in building-
construction activity and costs follows.
Retail construction has been relatively
Building-construction
low over the past couple of years, but we
activity
believe supply should increase somewhat as
several malls and mall extensions are under To analyse building activity, we delve
construction. deeper into the SARB’s measure of gross fixed
capital formation (GFCF) as well as building-
In the residential sector, the decline in construction data from Stats SA. The SARB’s
construction activity has gotten even worse in measure of GFCF reflects the real value of
Rode’s Report 2024:2 182 Building activity and building costs

bricks and mortar being put in place in a given at the time the building plans were passed
period like a quarter or a year. by the municipality, which could be a
number of years earlier. The progression of
GFCF in the non-residential sector in the the cumulative building cost expended on a
first quarter of 2024 decreased by 14% project over time reflects a lazy S-curve.
compared to the first quarter of 2023. This For instance, a building worth R100 million
comes after activity fell by 1,5% 1 in 2023, the
completed in 2023 could reflect GFCF
third consecutive annual decline. Activity in
amounting to R25 million being put in place in
the first quarter of 2024 was still 28% lower
than the 2019 level – that is, before the Covid 2023, R50 m in 2022 and R25 m in 2021
pandemic. (see the figure).

GFCF in the residential sector in the first

quarter of 2024 fell by 16% year on year.
Activity fell by 7,1% in 2023, after recovering
somewhat in the preceding two years.
Activity in the first quarter was still 35% lower
than the 2019 average.

The GFCF data suggests that the residential

sector has fared worse than the non-
residential sector since 2023 as it is more
sensitive to interest rate fluctuations.
This is illustrated by the sharp decline in
residential buildings completed and plans Source of data: Rode & Associates
passed, as discussed later. The opposite trend
occurred in 2021/22 when residential activity
performed relatively better because of the Thus the ‘buildings completed’ statistic is a
ultra-low interest rates that prevailed during lagging indicator – it reflects conditions
the pandemic. and expectations in the property market
that existed up to two or three years earlier.
Growth in real gross fixed capital formation This is especially true of non-residential
building construction. In contrast, GFCF
Residential vs non-residential
30

20
reflects a more recent occurrence and is,
10
therefore, less of a lagging indicator as it
reflects only R25 million in 2023 in the
0
(%; y-o-y)

-10

example above.
Growth

-20

-30

-40 Non-residential

-50
R esidential
With this as background, we now turn
to Tables 11.1 and 11.2, which reflect
11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source of data: SARB

‘building plans passed’ and ‘buildings

Compare GFCF with ‘buildings completed’ completed’ in square metres as reported
(ex Stats SA), which reflects, at the date of by local governments. The data is sourced
completion, the total building costs expected from Stats SA.

1 Note that Stats SA has revised 2023’s data downwards after previously reporting a 5,5% increase.
Rode’s Report 2024:2 183 Building activity and building costs

Source of data: Stats SA

Non-residential buildings completed in than a square metre of mall or office

square metres is on track to be below its building.
long-term average for the fifth consecutive
year in 2024. This is as activity started the In the text below, we delve deeper into the
year poorly, declining by 17% in January trends by property type.
to May 2024 compared to January to May
2023, as shown in Table 11.1. As mentioned above, the property type that
is truly struggling is the office market. Office
Note on the quarterly chart how the activity during January to May 2024 fell by
contribution from office construction to 64% year on year. It is alarming to note that
total non-residential activity has become the decline worsens to 85% when compared
smaller. In contrast, industrial buildings to 2019. Simply put, it does not make sense to
increased their share to two thirds of build offices due to the substantial amount of
total activity over the first five months of existing space available to rent (see Chapter
2024 compared to 54% in 2019 (before the 6). However, there are some exceptions,
pandemic). Note also that a square metre like where offices are being built for owner
of industrial construction is worth less occupation (think Amazon in Cape Town).

Source of data: Stats SA

Rode’s Report 2024:2 184 Building activity and building costs

Source of data: Stats SA

Source of data: Stats SA

Measured in square metres, retail space in 2024 still averaged lower than pre-Covid
completed over the past few years has also (2019) levels, but it has declined less than
been well below historical levels, as shown office and retail property. This reflects the
on the chart. Completed retail construction superior fundamentals of industrial property
fell by 39% during January to May 2024 (see Chapter 7). Note that by ‘industrial
compared to the same period in 2023. market’ we mean warehousing and
However, numerous malls and extensions manufacturing space.
are currently under construction. We report
on the outlook for building activity for As for future non-residential activity, plans
the rest of 2024 and 2025 in our sister passed in square metres decreased by
publication Rode’s Retail Report. 1,5% year on year over January to May 2024,
as shown in Table 11.1. The office and
Industrial space completed during January to industrial sectors both saw a decline in plans
May 2024 was 20% higher compared to passed, while retail space increased strongly.
January to May 2023. This comes after activity We discuss the outlook for building activity
decreased by 17% over the full 2023. Looking over the medium term in Rode’s SA Property
further back, industrial building activity so far Trends.
 Rode’s Report 2024:2 185 Building activity and building costs

Table 11.1
New non-residential buildings
(private sector) (m²)
Industrial
Offices Shopping space Total
buildings
January to May 2024 vs January to May 2023 (% change)
Completed -63,7% -39,1% 20,3% -16,6%
Plans passed -64,4% 146,5% -20,4% -1,5%
Source of data: Stats SA

Table 11.2
New residential buildings
(private sector) (m²)
Dwelling houses Dwelling houses Flats &
smaller than larger than townhouses Total
80 m² 80 m²
January to May 2024 vs January to May 2023 (% change)
Completed -30,8% -10,5% -30,0% -19,3%
Plans passed -32,8% -15,8% -11,1% -15,5%
Source of data: Stats SA

Source of data: Stats SA

Residential buildings completed fell by 19% Building plans passed declined by 15%,
year on year over January to May 2024 (see which confirms that residential activity is
Table 11.2). Activity is still well below the more sensitive to higher interest rates than
long-term average, as shown on the chart. non-residential activity.
Rode’s Report 2024:2 186 Building activity and building costs

Building-construction costs as measured by the Haylett Indices. This

remain high implies that builders have generally had a
profitable year so far.
Estimates by the BER are that tender prices (as
measured by the BER BCI) 2 increased by 7,4% It must be pointed out that even where a
year on year in the second quarter of 2024, building-construction contract has a ‘Haylett’
slowing from the 14,7% rise in the first quarter clause, the rise in input costs is partially for the
of 2024. The “smoothed” increase came to account of the developer.
around 9% for the second quarter (see
Annexure 6 for historical BCI data). Rode’s six-year forecast of building activity
and building-construction costs, as well as
The increase in building costs was well above other property-related variables, is provided
the estimated input cost increase of 4,5%-5%, in Rode’s SA Property Trends. 

2 Tender prices include input costs like fuel, labour and materials, and the profit margin of contractors.
Rode’s Report 2024:2 187 Annexures

Annexures
Rode’s Report 2024:2 I Annexure 1

Glossary of property
and related terms
and abbreviations
Arithmetic mean: The most often used parking basements or above ground), lift
measure of central tendency. It is the motor rooms, service rooms, caretakers’ flats,
simple average of several observations. etc. GBA is mainly used by planning consultants
Mathematically, it is equal to the sum of all to plan and execute a building in accordance
values divided by the number of observations. with the permissible Floor Area Ratio (FAR) as
For example, the arithmetic mean of 6 and 7 is derived from the zoning of the property. GBA
(6+7)/2. The arithmetic mean of 6, 7 and 8 is is fixed for the life of the building but it should
(6+7+8)/3; and so forth. Outlier observations be noted that different local authorities may
may unduly affect the mean. In the Rode interpret the National Building Regulations,
publications all references to the ‘mean’ or which regulate the FAR definition, in a slightly
‘average’ refer to the arithmetic mean, unless different manner.” The market value of office
otherwise specified. See also geometric mean and shopping centre land is generally ex-
and median. pressed as the value per bulk square metre.

BER BCI: Bureau for Economic Research Bulk headlease: A lease that is signed with one
Building Cost Index. Measures pre-contract party, which then sublets the space to other
non-residential building-construction prices tenants.
and as such it includes the profit margin of
contractors. This index is one of the best
Capitalization rate: see Standard
indicators of the health of the building-
Capitalization rate
construction industry. If it accelerates faster
than input costs (measured by the Haylett
CBD: Central business district or downtown.
Index), then contractors are stretching their
This is an area of concentrated high economic
profit margins as a result of sufficient work,
activity. The user may want to differentiate
and vice versa.
between the metropolitan CBD (e.g. the
Building construction: the construction of Johannesburg CBD) and a decentralized CBD
buildings like houses, office blocks, factories, (like the Sandton CBD).
shopping centres, schools, hospitals. See also
civil construction. Civils: colloquial for civil construction.

Bulk: Bulk square metres refer to the Civil construction: the construction of physical
gross building area (GBA) of a building. infrastructure like roads, bridges, dams, the
According to The Sapoa Method for Measuring laying of storm water pipes, electricity
Floor Areas in Commercial and Industrial and water reticulation. See also building
Buildings, GBA covers: “The entire building construction.
area, but it excludes patios, plant boxes, sun-
screening, escape stairs, machine rooms, Cluster housing [trosbehuising]: Attached or
Rode’s Report 2024:2 II Annexure 1

detached residences grouped together in a Disinflation: Disinflation occurs when the

community, normally secured by a fence inflation rate is declining over time. See also
and a (guarded) gate. In the stricter sense deflation.
of the word, to be called cluster housing,
a complex has to have common recreation Duet house: Two attached single-family
areas like a swimming pool or private nature houses on one stand registered in terms of the
area. This layout normally results in a higher Sectional Titles Act, which means the two units
density than would be attained through are sold and bought separately.
a conventional subdivision layout. Tenure
could be either full title (managed by a Escalation rate: The rate by which a rental is
homeowners’ association) or sectional title hiked once a year in terms of a lease. The ruling
(managed by a body corporate). See also market escalation rate can be seen as an
Estate housing. attempt by the market to forecast the growth
in market rentals over the duration of the
Cyclical trend: A short-term growth path of lease, but this attempt is obviously rarely
an economic variable. Normally refers to the successful. Thus, it is important to differentiate
business cycle, as distinct from a secular between an escalated rental and a market
trend. rental.

Dec: Decentralized. A Rode abbreviation. Estate housing [landgoedbehuising]: It is

Town and regional planners differentiate similar to Cluster housing, except that
between local decentralization (from the common-area leisure facilities are not a
metropolitan CBD to the suburbs) and regional requirement of the definition; not necessarily
decentralization (to outlying areas of the upmarket, although it does have an upmarket
country). flavour.

Deflation: Deflation occurs when prices are Exit capitalization rate: When valuing an
declining over time. This is the opposite of income-producing property by discounting,
inflation and could be catastrophic. When the say, the first five years’ cash flow, the sixth
inflation rate (by some measure) is negative year’s expected net market rent must be
for a period, the economy is in a deflationary capitalized in perpetuity at the end of year five
period. See also disinflation. and thereafter also discounted to year_0 (date
of valuation). The capitalization rate at the end
Deseasonalized: Seasonal fluctuations have of year five is known as the exit capitalization
been removed. In the case of retail sales, rate. To provide for ageing, this rate is typically
this is essential to be able to compare sales slightly higher than the year_0 capitalization
pertaining to different months of the year, as rate.
opposed to comparing sales of one quarter or
month with the same quarter or month a year Floor plate:
earlier.
(1) The rentable area of a single floor in a
Discount rate: The rate used to express an building.
expected future cash stream in present-value (2) The total area of a floor of a building
terms. In most instances, the discount rate is measured from the exterior of the
equal to the hurdle rate. Mathematically, the main wall of the floor level, including
hurdle rate of a property is the sum of its voids at the level of the floor, such
market capitalization rate plus the expected as an atrium, mezzanine, stairwell,
constant growth rate of its cash flow in escalator, elevator, ventilation, duct
perpetuity. or utility shaft.
Rode’s Report 2024:2 III Annexure 1

Forward (income) yield: A bourse term, Geometric mean: A measure of central

hence it is typically applied to listed tendency calculated by multiplying the series of
properties. In the non-listed property market, numbers and taking the nth root of the product,
its approximate equivalent is the capitalization where n is the number of items in the series.
rate. It represents the expected net income of The geometric mean is defined only for sets of
year 1 (the following 12 months) divided by the positive numbers. For example, the geometric
current price/value. It stands to reason that mean of 6 and 7 is the square root of (6*7). The
existing leases would largely determine the net geometric mean of 6, 7 and 8 is the cube root of
income of year 1. See also historic (income) (6*7*8); and so forth. See also arithmetic mean
yield. and median.

Freehold title: The owner of the land Geometric mean return: It is also called the
enjoys free ownership in perpetuity (no time-weighted rate of return or the average
land rental payable to a landlord) and can compounded rate of return. It is calculated
use the land for any purpose, albeit in by taking the geometric mean of a portfolio’s
accordance with the local regulations. Cf. subperiod returns. Where there is a great
Leasehold. variance in subperiod returns, this is a better
return measure than the arithmetic mean
Full title (FT): The house or other type of return. Unlike the internal rate of return, it is
building is part of an Estate or Cluster scheme not influenced by the timing and weights of
and is built on a separate erf registered at money-flows.
the Deeds Office. The scheme is governed
by a homeowners’ association rather than a GBCSA: Green Building Council of South Africa.
sectional title body corporate. Thus, the term
is used to distinguish it from Sectional title Grey shell/box: Commercial space that is
(ST). In theory, full-title homes could be built completely unfinished. That means it has
on Leasehold or Freehold land, although the unfinished floors, no interior (dry-)walls, no
former is unlikely in SA. It is, therefore, wrong plumbing or electrical, and if it has AC, it
to call ‘full title’ ‘freehold’, when it could in fact may be without controls or ductwork. Source:
be full title on leasehold land; also, most, if https://seacoastconstruction.net/whats-the-
not all, sectional title schemes are built on difference-between-a-gray-shell-and-white-
free-hold land. box-in-the-commercial-sector/
See also: White-box finish
Fundamental value (FmV): It is a subjective
value based on the investor’s own, subjective Haylett index: A measure of the movement
forecast of rentals and maybe the investor’s of all input costs in the building industry,
unique or different in-house discount rate/ most significantly material and labour
capitalization rate. An FmV higher than the costs. Other costs include plant and fuel.
more objective market value (MV) is a buy Designed to recompense the building
signal to an investor. contractor for in-contract rises in input
costs. Does not include profit margins for
The calculation of the FmV is especially contractors. Official designation: CPAP Haylett
indicated where the economy, or property Formula (Work Group 180 & 181). Work Group
market, changes gear, e.g. a secular change in 180 covers lump-sum domestic buildings
inflation rate or the real-rental cycle bottoming and Work Group 181 entails industrial and
out. These are instances where any market is commercial buildings. The Haylett index
notoriously poor at forecasting trends. An published in RR is obtained from the Medium-
alternative term is intrinsic value. Term Forecasting Associates (MFA).
Rode’s Report 2024:2 IV Annexure 1

Historic or trailing (income) yield: A bourse space is easily lettable because it satisfies each
term, hence it is typically applied to listed of the following prerequisites:
properties. It represents the net income of
a. Generally, in a good condition;
year 0 divided by the current price/value. See
b. Satisfactory macro access (i.e. access to
also forward (income) yield. In a market of
freeway);
rising net incomes, the historic yield would be
c. Satisfactory micro access (i.e. from
expected to be lower than the forward yield.
street to building);
d. Proper loading facilities;
Hurdle rate: The minimum total
e. Eaves >6 m (excluding micro/mini
return (in-come yield plus expected capital
units);
appreciation) required by potential investors
f. Wide clear span of trusses (few internal
to induce them to invest in a property. Also
pillars);
known as the required rate. As such this is
g. On ground level;
normally the correct rate to use when doing
h. Adequate three-phase electrical
discounted cash flow (DCF) analyses. This is a
power.
similar concept to a company’s cost of capital,
i. Roof insulation
and it is not to be confused with the cost of
money (say, overdraft interest rate). One
The nine conditions above are
way of measuring the total return on an
prerequisites for space to be considered
investment, ex post or ex ante, is the internal
prime. However, a building may possess
rate of return (IRR) method. See also discount
additional enhancements that could
rate.
improve letability through increasing the
size of the potential tenant pool.
Index: Describes the method of standardizing
the base for comparative data in a time series, Such enhancements could include sufficient
usually equating the initial measure to 100 and office accommodation, adequate parking,
then expressing all other data in exact relation sprinkler systems, masonry up to sill height,
to that base. For instance, the index for office adequate floor loadings and sufficient yard
rentals in any year by comparison with space.
a base-year value of 100 might stand at
90 or 110, indicating a fall or rise of 10% Secondary: This is industrial space which is
respectively. not classifiable as prime because it does not
satisfy all nine prerequisites for prime space
Inclusionary housing: A housing programme listed above. Such space is typically old buildings
that, through conditions attached to land-use or structures, which have been haphazardly
rights approvals, requires private developers renovated. It would have poor access, too
to dedicate a certain percentage of new little yard space or office accommodation,
housing developments to low-income and low- inadequate goods lifts, no three-phase power
middle-income households, or to households and obsolete electrics and ablution facilities.
that may not otherwise afford to live in those Such space is often (but not exclusively) found in
developments. highly urbanised areas.
Source: City of Johannesburg, Inclusionary
Comparative grading nomenclature of
Housing: Proposed Amendments, 2 August
industrial and office space
2018
Industrial Offices
Industrial-building grades: Prime + A
Prime B
Prime: An industrial property (including Prime -
C
warehouses and distribution centres) in which Secondary D
Rode’s Report 2024:2 V Annexure 1

Industrial park: An industrial park is a multi- the government seems to prefer it when
tenanted complex of industrial buildings, disposing of state land. Cf. Freehold.
typically surrounded by a security fence with
access control and possibly some greenery. Lessee: A tenant to whom space or land is
rented under a lease. Cf. Lessor.
Initial yield: The first year’s expected net
operating income (based on existing leases Lessor: A landlord that lets space to another
and other income reasonably expected) under a lease. Cf. Lessee.
divided by the purchase price. Therefore, the
initial yield and the capitalization rate are only Market growth rate: The percentage by which
the same in those rare cases where a building property values or market rentals change over
is let at open-market rentals. a given period based on market dynamics.

Internal rate of return (IRR) [interne Market rental: The estimated amount for
rentabiliteit]: A performance measurement which a property would be leased on the
that takes cognisance of the time-value of valuation date between a willing lessor and a
money. Technically, it is that rate which willing lessee on appropriate lease terms in
equates the inflows with the outflows of a cash an arm’s length transaction, after proper
flow. Also known as the money-weighted rate marketing and where the parties had each
of return because the timing and weights of acted knowledgeably, prudently and without
the money-flows influence the return. Cf. compulsion. [Source: International Valuation
geometric mean return. Standards, 2020]

JSE: JSE Securities Exchange South Africa. Market value: The estimated amount for
which a property should exchange on the date
Labour tenant: A person who works on a
of valuation between a willing buyer and a
commercial farm in exchange for the right to
willing seller in an arm's-length transaction,
live on that farm without compensation, as
after proper marketing wherein the parties had
well as the right to work a portion of that farm
each acted knowledgeably, prudently, and
for himself.
without compulsion. [Source: International
Last-mile logistics units are smaller industrial Valuation Standards, 2020]
spaces used by businesses as distribution
centres to deliver goods. The MV is an objective value in that the crucial
value determinants are largely derived from the
Leaseback: A fully repairing and insuring lease marketplace. See also price and fundamental
(tenant pays all operating costs) for 10 years value.
or longer (with typically 5-yearly rent reviews
or fixed annual escalations) with a tenant with Mean: See arithmetic mean; median;
a strong covenant. geometric mean.

Leasehold land: The leaseholder (landlord) Median: Midpoint of a series of observations

grants the Lessee a long lease on the land when arranged in order of magnitude. Thus, it
(in South Africa, typically 40-99 years), in is a measure of central tendency that divides
exchange for which the tenant pays a rent the data set into halves. Less affected by
stream to the landlord. At expiry of the lease, outlier observations than the arithmetic mean.
the land (together with the improvements) For example, the median of 5, 6, 7, 8, 9 is 7. And
reverts to the leaseholder. This type of tenure for 5, 9, 15, 16, 17, 21, 23 the median is 16. Cf.
is not common in South Africa, but since 1994 geometric and arithmetic mean.
Rode’s Report 2024:2 VI Annexure 1

Metro: Metropolitan. In every issue of Rode’s Report (RR), we reflect

rentals for the following sub-grades:
MFA: Medium-Term Forecasting Associates,
building-construction economists located in A+ Reported in RR tables
Stellenbosch. A Reported in RR tables
A-
n: Number of respondents.
B+
N/A: Not available — fewer than two B Reported in RR tables
respondents. B-
C+
NNN lease: Also known as a triple-net lease. A C Reported in RR tables
fully repairing and insuring lease (tenant pays C-
all operating costs). The commonest example
is a Leaseback. Sub-grades not reported on, can be
established by straight-line interpolation.
Office-building grades defined by quality of
finishes and facilities (not location): This schema has been appearing in Rode’s
Report since 1995. At a later stage, Sapoa
• Grade A+: Generally, new, top-quality,
(following the Australian example) changed
modern buildings; ample parking; a
the name of grade A+ to P grade (for ‘premium’).
pacesetter in establishing rentals, a
As the reader will see, the P-name does not fit in
prestigious lobby finish. A minimum 4-star
with the above schema, and for this reason, we
rating by GBCSA is a prerequisite.
did not follow the Sapoa nomenclature.
• Grade A: Generally, not older than 10 years,
unless renovated; high-quality finishes; The vigilant reader will notice that, in contrast
adequate on-site parking; air-conditioning. to Sapoa, we do not include ‘location’ as a
determinant of grading. Our point of departure
• Grade B: Generally, 10 to 20 years old, unless is that the grading should only reflect quality of
renovated; accommodation to modern finishes and facilities. However, location does of
standards; air-conditioning; on-site parking. course play a role in determining market rental
rates, which is why we in RR report on market
• Grade C: Generally, 20 to 30 years old, unless
rental rates by node (and grade).
renovated; in fairly good condition, although
finishes are not up to modern standards; may Node: In real estate, a node is an area of
have some on-site parking; unlikely to be intensified commercial activity, including
centrally air-conditioned. shops and offices. In South Africa, industrial
• Grade D: A building reaching the end of its townships are also often called nodes,
functional life but can be used for storage; although this practise is not recommended.
old and in poor condition; near the bottom
of the rental rate range; typically, no air- Office demand: Office stock less office space
conditioning and no on-site parking; may vacant (space on the market for renting
have good location. irrespective of whether there is still a valid
lease over the space). In other words, demand
These grades might be further sub-divided into is office space occupied.
sub-grades, viz. A-, B+, B-, C+ or C- for purposes of
fine-tuning market rental rates. Office stock: Total rentable office space.
Rode’s Report 2024:2 VII Annexure 1

Office take-up: Change in office demand. THE FOLLOWING ITEMS ARE EXCLUDED:
Where take-up is positive, it can also be called
• Head office overheads
the growth in demand.
• Tenants’ own electricity, water, refuse and
sewage tariffs
Office vacancies: This is the floor area
• Recovered tenant alterations or
available for leasing at any given time,
installations.
irrespective of whether there is still a valid
lease over the space. Often expressed as a • VAT.
percentage of the stock measured- in rentable
Price: The amount actually paid for an asset.
m².
Not the same as market value, because special
circumstances may have applied when the
Operating costs: See outgoings.
transaction was concluded (cf. the definition
of market value).
Opportunity cash flow (OCF): A valuation term
introduced by Rode. The OCF quantifies the
PLS: Property loan stock, also known as
amount gained or foregone by the landlord in
variable loan stock (VLS) (type of listed
that the property is either over rented or under
property fund). (historic)
rented. More precisely, for each lease and the
space that such a tenant occupies, it is, until
PUT: Property unit trust (type of listed
expiry of such a lease, the present value (PV) of
property fund). (historic)
the contractual rental less the open-market
rental (as at the valuation date) escalating at
REIT: A REIT is an entity that invests primarily
the open-market escalation rate (as at the
in real estate and qualifies for special tax status
valuation date).
in that there is single taxation at the end-
Outgoings (gross operating costs): In the case investor (not the fund) level. The Dutch term
of office buildings, the following items are ‘fiscale beleggingsinstelling’ (FBI) stresses the
included under total gross operating expenses, tax characteristic. The FBI is the world’s oldest
irrespective of who pays for these: fiscally transparent investment structure for
property (since 1969).
• Rates & taxes Source: https://www.vastgoedmarkt.nl,
published 16/11/2017.
• Cleaning of common areas
• External and common-area repairs and Rental:
maintenance (normalized, i.e. averaged)
• Common-area electricity • Basic rental (base rental in the USA): A
• Security set amount used as a minimum rent in a
• Management fee (excluding head office lease which also employs a percentage of
overheads) turnover or other allocation for additional
• All leasing expenses: broker’s commission rent.
and in-house payroll, advertising, net tenant
alteration costs (normalized) • Gross rental: The total rental payable by
• Installation or relocation expenses (unless the tenant, excluding VAT, the tenant’s
recovered), buyouts, etc. own electricity and other utility charges,
• Insurance (fire & SASRIA). In the case of self- but including other operating costs (see
insurance, the market average should be Outgoings) recovered by the landlord,
included such as rates and taxes. In the case of case
• Audit fees of shopping centres, promotion expenses
Rode’s Report 2024:2 VIII Annexure 1

are included in the gross rental. See also the differential is positive, it is an
rental, net. indication of growth prospects in the
node. If the differential is negative, it is an
• Net rental: The amount payable by indication that landlords are finding it
the tenant, excluding VAT and excluding difficult to find new tenants at the asking
operating costs recovered by the landlord
rental rate.
(if any). See also rental, gross.
• Real rental: Deflated rental, typically
• Nominal rental: This has a dual meaning: observations (values) over time (a time
series) from which the relevant inflation
o Firstly, it refers to rentals where
has been removed. See also rental −
the analyst or valuer assumes no
nominal.
incentives like a rent-free period,
free relocation, cash upfront, or
balance-of-installation allowance. It Perpetual vacancy – see Vacancy – long-term.
also excludes amortisation of tenant-
installation costs. Rent-free period: No rent is payable by the
tenant for an initial portion of the term of a
o Secondly, it can also mean actual rental lease. It is offered by a landlord as a rental
values (i.e. not deflated). See also concession to attract tenants. Measure the
rental, real. rent-free period at the start of beneficial
occupation.
Parking types:
Required rate of return: see hurdle rate.
• Detached open parking: parking bay is
detached from the main building and with Retail price: In the context of property
no cover. syndication, this means the price at which a
property-holding company’s shares are sold to
• Detached shade-net parking: parking bay is
the public or the price at which these shares
detached from the main building with
trade. See also wholesale value.
shade-net cover.
• Detached covered parking: parking bay is RR: Rode's Report on the South African
detached from the main building and has a Property Market, a quarterly journal for the
solid roof. professional property practitioner.
• Structured parking: parking forms
inherently part of a structure (for instance, Sapoa: South African Property Owners
the main building). It could be in the Association.
basement, in an abutting parkade or on
SARB: South African Reserve Bank (viz. the
the rooftop (where it could be open or
central bank)
covered).
Sectional title: A type of property ownership
• Pioneer rental: The highest rental method whereby ‘sections’ of a building, or
achieved – and could be a once-off outlier a complex of buildings, are created to allow
deal; hence “pioneer” is not “market”. The for each ‘section’ of the building to be
difference between pioneer and the individually owned. In Australia it is known
highest market rentals may be used as a as ‘strata title’, and in North America
blunt tool to gauge the prospects for and Europe as ‘condominium’ (condo) (also,
market rental growth in the short term. If Eigentumswohnung in Germany).
Rode’s Report 2024:2 IX Annexure 1

Secular trend: A long-term growth path of Loch Logan Waterfront (Bloemfontein);

an economic variable, around which there Hemingways (East London); Garden Route
might be short-term (business cycle) or other Mall (George).
fluctuations. See also cyclical trend.
• Small regional: 25.000-50.000 rentable
Shopping-centre configurations: m²; 75-150 stores; generally serves as
larger community centre; some of these
• Mall: Typically enclosed with common centres also address needs of a specific
walkway between two facing strips of market segment; anchor tenant is large
stores. This is the design mode for super supermarket (bigger than approximately
regional, regional and most community 4.000 m²); up to two or three food
shopping centres. anchors can be on offer in one centre;
• Strip centre: Is an attached row of stores or focus of the tenant mix is on comparative
service outlets managed as a coherent shopping in clothing and household items;
retail entity, with on-site parking, usually entertainment mainly focused on cinemas.
located in front of the stores. Storefronts Examples are: La Lucia Mall (Durban);
may be connected by open canopies, but Walmer Park (Gqeberha); Mimosa Mall
there are no enclosed walkways linking the (Bloemfontein); Langeberg Mall (Mossel
stores. Store configuration is either a Bay).
straight line, “L” or “U” shaped. This is the
• Community: 12.000-25.000 rentable m²;
design mode for most neighbourhood,
50-150 stores; offers a wider tenant
convenience and value (USA: power)
mix than a neighbourhood centre; anchor
centres.
tenant one or two large supermarkets
bigger than 2.500 m²; Dis-Chem and
• Street-front shop: as the name implies, a
Clicks are popular tenants; some might
shop that fronts on the street. In the UK
have cinemas; Examples are: Cosmo
known as a high-street shop.
Mall (Johannesburg); Middestad Mall
Shopping centre types: (Cape Town); Mall@Lebo (Lebowakgomo,
near Polokwane); Brandwag Centre
• Super regional: More than 100.000 (Bloemfontein); Beacon Bay Retail Park
rentable m²; more than 250 stores; (East London).
comparison and specialised shopping very
important; widest possible tenant mix • Neighbourhood: 5.000-12.000 rentable
with at least seven anchor tenants; large m²; 25-50 stores; anchor tenant is
entertainment component such as cinema, well-known food retailer - could also be a
electronic games, ice rinks. Examples are: combination of two food retailers; other
Mall of Africa (Johannesburg); Menlyn Park tenant types are convenience retailers,
(Pretoria), The Pavilion (Durban); Canal such as a pharmacy, butchery, hairdresser,
Walk (Cape Town). dry cleaner, liquor store; hardware store,
small clothing stores, restaurants and
• Regional: 50.000-100.000 rentable m²; takeaways, independent stores run by
150-250 stores; anchors in most cases two residents. Examples are: Kyalami on Main
large supermarkets (more than 5.000 m²) (Johannesburg); Jean Avenue (Pretoria),
or one large supermarket (8.000 m²); Plattekloof Village (Cape Town).
significant entertainment component like
cinema, electronic games/games arcade. • Local convenience: 1.000-5.000 rentable
Examples are: Mall of the South m²; 5-25 stores; caters mainly for daily milk
(Johannesburg); Forest Hill (Pretoria); and bread purchases; the principal tenant
Tyger Valley and N1 City Mall (Cape Town); is a café or grocer like Kwik Spar/OK
Rode’s Report 2024:2 X Annexure 1

MiniMark could include takeaway foods, and a mean of R10 and an SD of R1,50. This
local restaurants, DVD stores, banks and means there is a 68% chance the values will lie
ATM facilities. Examples are: Kenilworth between R10‐R1,50 = R8,50 and R10+R1,50 =
Corner (Cape Town); Amalinda Square R11,50.
(East London).
Stats SA: Statistics South Africa, South
 Lifestyle centre: 15.000‐50.000 rentable African government’s statistics department.
m²; not a popular format in South Africa; Previously known as Central Statistical Services
role is to offer a unique retail shopping and (CSS) and even earlier as the Department of
entertainment experience in a relaxed and Statistics.
attractive environment. Characteristics
Through rate: Where a property consists of
are: a variety of dining options, inviting
various components (for example office and
public spaces including fountains and
industrial space) the through [rental] rate is the
street furniture, an upmarket tenant mix.
weighted average rental rate of these
Examples are: Lynnwood Bridge (Pretoria);
components.
The Palms Décor and Lifestyle Centre
(Woodstock, Cape Town) and Cape Quarter A graphic portrayal of a rental time series
Quarterly frequency
(Waterkant, Cape Town) and Willowbridge 90
(South) in Tyger Valley (Cape Town). 80

 Retail warehouse (big‐box retailer):

70
R/m² per month

Stand‐alone; one or two tenants; 60

2.000‐15.000 m²; air‐conditioned, no 50

ceiling, warehouse‐like finishes, e.g. 40

Makro, Builders Warehouse and Game. 30

 Value centre: Multi‐tenanted strip centre; 20

93 94 95 96 97 98 99 00 01 02
10.000‐50.000 m²; warehouse type finishes
to deliver lower prices to consumers. Time series/data series [tydreeks]: A set of
Examples are Capegate Value Centre (Cape observations for the same variable at regular
Town); Fourways Crossing (Johannesburg); intervals (see graph). The intervals or
Moffet Retail Park (Gqeberha). frequencies may be of any length, e.g. years or
quarters for national‐income or property data,
Smoothing: Removal of shorter‐term monthly for prices, and weekly, daily, or even
fluctuations in a time series, by e.g. moving minute‐by‐minute for stock exchange prices.
averages, exponential smoothing, or curve
fitting. Total return: Normally measured over a year,
in which case it is the income yield for the
Standard capitalization rate: It is the expected applicable year (net income in year 1 divided
net operating income for year 1, assuming the by the purchase price or value in year 0) plus
entire building is let at open‐market rentals, the change in capital value over that year. Also
divided by the purchase/transaction price, known as the combined return because it
normally expressed as a percentage. This combines the income yield and capital return
calculation ignores VAT, transfer duty and in one measure.
income tax, and assumes a cash transaction (in
contrast to a paper‐based sale). Town house [meenthuis]: A modern town
house has a small footprint on multiple
Standard deviation (SD): A measure of floors. In the UK it is known as a terraced
dispersion in a set of data. For instance, house. Town houses are often found in cluster
assume a normal distribution of observations complexes. Historically, it was the (small)
Rode’s Report 2024:2 XI Annexure 1

house of the landed gentry in town. Cf. in White-box finish: Commercial space that
Afrikaans tuishuis/dorpshuis, a small house in comes partially complete with basic finishings.
town where farmers used to stay for nagmaal where the tenant only has to add final touches
(communion). to make the space its own. Generally, this
means it has walls that are ready to be
Triple-net lease: see NNN lease. painted, exterior walls, windows and doors,
a finished ceiling with standard lighting,
Vacancy – long-term, also called perpetual standard electrical, AC with ductwork
vacancy. Mathematically, when capitalizing and controls, a completed sprinkler system
(turning an income stream into a current finished at ceiling height, and a finished
capital amount), the implicit assumption is that restroom (if applicable as the restroom
the income stream will extend into perpetuity. could be in the common area of the
Thus, when capitalizing, the valuer should building). It excludes interior walls, paint and
assume a perpetual vacancy, even if the wall coverings, electrical fixtures, flooring,
building is currently fully let, because the and tenant-specific equipment or office
building will have vacancies from time to time. upgrades.
The perpetual vacancy (measured in gross
market rents) must be deducted from the Source:
first year’s market-related income before https://seacoastconstruction.net/whats-the-
capitalizing. The ‘first year’ could be Year_1, difference-between-a-gray-shell-and-white-
Year_6 or Year_11, etc, depending on when box-in-the-commercial-sector/
capitalization (in perpetuity) of the cash
stream takes place. Of course, where there is a See also: Grey shell/box
long-term lease on the whole building with a
Wholesale value: In the context of property
strong covenant, the long-term vacancy
syndication, this means the estimated
would only apply from the end of the long
price that a share or shares of a syndicated
lease and would, therefore, be low at the
property-holding company would fetch
valuation date.
(excluding winding-up costs) should the
holding company be dissolved, and the
Vacancy – short-term. Where the current
underlying property sold as a normal,
vacancy is higher than the estimated perpetual
non-syndicated property. See also retail
vacancy, the difference must be subtracted
price.
from the capitalized amount (note: after
capitalizing). This implies the valuer must Year-on-year (y-on-y) growth: Rate by which
estimate how long it will take to fill the short- a figure has changed compared to a year
term excess vacant space. earlier.

VAT: value-added tax. Year 0: Refers to the year ended at the present
time (the valuation date).
WALE: Weighted average lease to expiry.
A metric to gauge the risk of a portfolio of Year 1: Refers to the period from year 0 to the
properties going vacant. Measured in years. end of the first year thereafter.
Rode’s Report 2024:2 XII Annexure 1

References:

1. International Council of Shopping Centres

2. Bureau of Market Research, University of South Africa
3. Sapoa
4. International Valuation Standards, 2020
Rode’s Report 2024:2 XIII Annexure 2

Technical background
to the Rode surveys
Rode has been surveying the crucial variables approach to determine the levels of the
of the property market in South Africa since various property variables:
the beginning of 1988 using the expert-panel
method. Broadly speaking, the researcher has Capitalization rate: The Rode capitalization rate
two potential approaches available to him. panel consists of two categories of panellist —
These are: major owners, and leading investment brokers
who know their market segments intimately.
o Track actual transactions, like the rental This means that the latter's knowledge is based
levels of lettings or the capitalization rates on actual sales. The question put to these
at which sales are concluded. Valuers carefully chosen panellists is:
(appraisers) call these ‘comparables’.
Owners/Brokers: “In your opinion, what is
presently the capitalization rate at which your
o The expert-panel method of surveying, in
organization is equally happy to buy or sell the
which the surveyor regularly asks the
properties in the cities below? (Assume a
same individual members of the panel for
typical location and a cash sale, rather than
their expert opinions, which in turn will of
paper.). For leasebacks, assume the escalation
course be based on actual deals of which
rate reported by you in this questionnaire.”
the panellists are aware.
Escalation rate (for industrial lease-backs):
The cons of tracking actual transactions are:
The question put to the panellists is:
o A paucity of transactions in most nodes,
making statistical inferences impossible. Owners/Brokers: “In your opinion, what is the
o Hence the danger of relying on outlier current prevalent (i.e. most often achieved)
market escalation rate for prime industrial
data (mainly the result of small samples)
leasebacks (assume the market capitalization
o Dated transactions rate you provided in this questionnaire)?”
o The cost
o The unwillingness of the parties to report Office rentals: The Rode office rental survey
the details of individual deals. asks respondents to supply average market
rentals by grade (grades A+, A, B & C) for a
specific office node.
In contrast, through the expert-panel
method of research, most of the above cons The question put to the panellists is:
of the actual-transactions approach are
addressed through opinion surveys. This “In your opinion, what is presently the nominal
results in cheaper, more accurate and timely gross achievable/market rental (not asking
information. Sample size is still (and will rent, not escalated contractual rents, not
always be) a problem in some of the less exceptional deals) per rentable m² excluding
active nodes, but to a lesser extent. Below we VAT?” The questionnaire also asks for the
give the reader some insight into our survey typical rent-free period in months, the gross
Rode’s Report 2024:2 XIV Annexure 2

current-year operating costs per rentable m² Industrial land values: The question put to
and the predominant escalation rate on net & panellists is:
gross rentals, and operating costs.
“In your opinion, what are the current market
‘Nominal’ rental means the panellist must values per m² (NOT asking price, NOT exception
assume no incentives like a rent-free period. deals) for vacant, serviced level stands in
the industrial nodes and for the stand sizes
Industrial rentals: The question put to indicated below? Exclude transfer costs and
panellists is: VAT. Provided you are well informed, please
give us your opinion even though you might
“In your opinion, what are the current not have concluded a sale for the exact
gross achievable/market rentals per m² sizes.”
(NOT asking rent, NOT exception deals, NOT
escalated contractual rents) for prime industrial The information is required for stand sizes
buildings for the industrial nodes and floor-area of 1 000 m², 2 000 m², 5 000 m² and 10 000 m².
sizes indicated below? (Exclude VAT.)”
Flat rentals: The question put to panellists
The assumed floor area sizes are: 250 m², is:
500 m², 1 000 m², 2 500 m² and 5 000 m².
“In your opinion, what are the current market
Respondents are also asked to fill in their
rentals (not asking rent) for new lettings for
vacancy estimate for prime industrial space,
uncontrolled standard and upmarket flats in
using a scale of 1 to 9. See the table below for
the following categories and areas? The rental
detail on the vacancy scale.
data required is for unfurnished flats, excluding
water and electricity. Parking is typically
Vacancy scale for industrial nodes
included.”
<5% 5 – 10% >10%
1 2 3 4 5 6 7 8 9 Respondents are asked to provide rentals for
Low Medium High
bachelor, 1-, 2- and 3-bedroom units.

Thus, the reported vacancies do not represent Note that the flat rentals are not quoted per
percentages. m².
Rode’s Report 2024:2 XV Annexure 2

How Rode obtains its office vacancy rates

It is important to understand how Rode’s survey is constructed before digesting the data provided
in Chapter 6. Rode asks panellists across the country to fill in a vacancy factor for the different
office grades, using a scale of 1 to 9, as shown in the first table. For instance, if a broker is of the
opinion that the vacancy rate in a given node is between 0% and 10% (low), a 1, 2 or 3 must be
filled in, with 1 representing fully let or almost fully let and 3 indicating close to 10%. If vacancy
rates are between 10% and 20% or medium, a 4, 5 or 6 must be filled in, with 6 representing close
to 20%. The scale of 7 to 9 indicates vacancy rates are very high, between 20% and 30%.

Vacancy factors for office nodes

1 2 3 4 5 6 7 8 9
Rode scale
Low to medium Medium to high Very high
Converted to %
0% − 10% 10% − 20% 20% − 30%
vacant

Scale factor 1 2 3 4 5 6 7 8 9
% vacant 3,3% 6,7% 10,0% 13,3% 16,7% 20% 23,3% 26,7% 30,0%

Like SAPOA, Rode defines vacancies as the available floor area for leasing at any given time,
irrespective of whether there is still a valid lease over the space.

The reader may wonder why we use a scale of 1 to 9 and not 1 to 10. The reason is that 1 to 9 has
a whole-number median, namely 5. When you use a scale of 1 to 10, the median is an
uncomfortable 5,5 − which is not a whole number. We use the same logic for the industrial
vacancy scale.

To convert these vacancy factors to a percentage, the factor is multiplied by 3,333. The
percentages that correspond with each vacancy factor are shown in the second table.

In Chapter 6, we report on the smoothed results of the vacancy survey, which were calculated by
using a two-quarter moving average. The reason for smoothing the data is that it is dangerous to
rely on one quarter’s figure, as it might be an outlier owing to small sample sizes. This especially
applies to small nodes.

Importantly, Rode weighted the national decentralized vacancy rate by using SAPOA’s office stock
data per grade for the five major cities, namely Johannesburg, Pretoria, Durban, Cape Town and
Gqeberha. The decentralized vacancy rates of these cities are also weighted based on the stock
level per node. The weighted averages of the cities are provided in Table 6.1. 
Rode’s Report 2024:2 XVI Annexure 3

How to interpolate industrial rental

rates and land values
The industrial rental and land value tables put in the interpolation we want to perform.
in the body of the RR contain regression An r2 close to 1 is a good fit.
equations in natural log (ln) form in order to
allow the reader to interpolate rental rates or An example:
industrial land values for area sizes other than
those given in the tables. (All references Interpolate a rental rate for an area size other
below are to the industrial rental tables. than those quoted in the table — e.g. for an
However, they also apply mutatis mutandis to area of 750 m². Use your financial calculator
the industrial land value table.) and proceed as follows:

Assume the following equation:

The regression equations are in natural log
(ln) form because the relationship between ln Y = 3,8855 — (0,2263 (ln X)) where X = 750
the rental rates and area sizes leased, is m².
curvilinear. This means that the rental rate for
area sizes other than those quoted cannot be Step 1:
calculated by straight linear interpolation. In Calculate the natural log of X, viz. the floor
order to calculate the rental rate for an area area for which you want to interpolate the
size other than those quoted, use the market rental rate. The natural log of a floor
following equation from the tables: area of 750 m² is 6,6201 (use the ln key of
your financial calculator).
ln Y = a + b (ln X), where:
ln Y = the natural log of the rental rate, i.e. the Thus:
value which we want to calculate. ln X = the ln Y = 3,8855 — (0,2263 (6,6201))
natural log of the applicable floor area in m² = 3,8855 — 1,4981
for which we want to calculate the market = 2,3874
rental rate.
Step 2:
Note that a and b are given in the table. In order to calculate Y, get the exponential
The coefficient of determination r2 is an of ln Y (viz. of 2,3874) by using the ex key
indication of the goodness of fit of the on your financial calculator. The answer is
curve, i.e. how much confidence we can R10,89 per m².
Rode’s Report 2024:2 XVII Annexure 4

Approximate building cost rates

as at 1 July 2023
Source: AECOM Africa Property & Construction Cost Guide 2023/24

This section provides a list of approximate parts of the Western Cape and KwaZulu-Natal,
inclusive building cost rates for various specifically upper-class residential areas, for
building types in South Africa. example, are generally significantly higher
than Gauteng due to the demand for this
Rates are current to 1 July 2023, and type of accommodation. However, these
therefore represent the average expected rates are based on data received from
building cost rates for 2023. It must Gauteng, where possible. Be mindful that
be emphasised that these rates are indicative cost differences between provinces at a
only, and should be used circumspectly, given point in time are not constant and
as they are dependent upon a number may vary over time due to differences in
of assumptions. The area of the building supply and demand or other factors. Specific
expressed in m² is equivalent to the costs for any region can be provided
construction area where appropriate, as upon request by any AECOM office in that
defined in the ‘Method for Measuring Floor region.
Areas in Buildings, Second Edition’ (effective
from 7 November 2007), published by the Rates include the cost of appropriate building
South African Property Owners’ Association services, for example, air-conditioning,
(SAPOA). but exclude costs of site infrastructure
development, parking, any future escalation,
Construction cost normally vary between the loss of interest, professional fees and value-
different provinces of South Africa. Costs in added tax (VAT).
Rode’s Report 2024:2 XVIII Annexure 4

Building rates
Rates include the cost of appropriate building services, e.g. air-conditioning, but exclude costs of
site infrastructure development, parking, any future escalation, loss of interest, professional fees
and value-added tax (VAT).

Offices
1. Low-rise office park development with standard /m² R10.000 – R12.300
specification
2. Low-rise prestigious office park development /m² R12.900 – R19.200
3. High-rise tower block with standard specification /m² R14.500 – R19.200
4. High-rise prestigious tower block /m² R19.200 – R24.200
Note: Office rates exclude parking and include appropriate tenant allowances incorporating
carpets, wallpaper, louvre drapes, partitions, lighting, air-conditioning and electrical reticulation.
Parking
1. Parking on grade, including integral landscaping /m² R700 – R900
2. Structured parking /m² R4.900 – R5.400
3. Parking in semi-basement /m² R5.400 – R7.300
4. Parking in basement /m² R5.700 – R10.000
Retail
1. Local convenience centres (not exceeding 5.000m²) /m² R9.800 – R12.900
2. Neighbourhood centres (5.000m² - 12.000m²) /m² R10.800 – R14.200
3. Community centres (12.000m² - 25.000m²) /m² R11.800 – R15.000
4. Minor regional centres (25.000m² - 50.000m²) /m² R12.500 – R16.000
5. Regional centres (50.000m² - 100.000m²) /m² R13.200 – R16.000
6. Super regional centres (exceeding 100.000m²) /m² R14.500 – R18.700

Note: Super regional centres and regional centres are generally inward trading with internal
malls, whereas convenience, neighbourhood and community centres are generally outward
trading with no internal malls. Retail rates include the cost of tenant requirements and
specifications of national chain stores. Retail costs vary considerably depending on the tenant mix
and sizing of the various stores.
Industrial
Industrial warehouse, including office and change facilities within the structure area:
1. Steel frame, steel cladding and roof sheeting (light-duty) /m² R5.100 – R6.500
2. Steel frame, brickwork to ceiling, steel cladding above /m² R5.700 – R8.200
and roof sheeting (heavy-duty)
3. Administration offices, ablution and change room block /m² R9.200 – R11.900
4. Cold storage facilities /m² R17.400 – R24.700
Residential
1. Site services to low-cost housing stand (250m² - 350m²) /site R63.000 – R100.000
2. RDP housing /m² R3.000 – R3.200
3. Low-cost housing /m² R3.800 – R6.500
4. Simple low-rise apartment block /m² R9.100 – R12.700
5. Economic duplex townhouse /m² R9.100 – R13.000
6. Prestige apartment block /m² R17.800 – R26.000
Rode’s Report 2024:2 XIX Annexure 4

7. Private dwelling houses:

• Economic /m² R7.000
• Standard /m² R8.700
• Middle-class /m² R10.500
• Luxury /m² R14.600
• Exclusive /m² R23.000
• Exceptional (‘super luxury’) /m² R34.000 – R70.000
8. Outbuildings:
• Standard /m² R6.500
• Luxury /m² R9.200
9. Carport (shaded):
• Single /no. R5.600
• Double /no. R11.300
10. Carport (covered):
• Single /no. R8.800
• Double /no. R17.200
11. Swimming pool:
• Not exceeding 50kl /no. R110.000
• Exceeding 50kl and not exceeding 100kl /no. R196.000
12. Tennis court:
• Standard /no. R650.000
• Floodlit /no. R810.000
Student residential
High rise tower block with standard specification /m² R14.100 – R15.500
Note: Student residential rates include allowances for furniture, fittings, and equipment (FF&E).
Hotels
1. Budget /key R788.000 – R1.255.000
2. Mid-scale (3-star) /key R1.255.000 – R1.884.000
3. Upper-scale (4-star) /key R1.884.000 – R2.650.000
4. Luxury (5-star) /key R2.650.000 – R3.550.000
Note: Hotel rates include allowances for furniture, fittings, and equipment (FF&E).
Studios
1. Studios: dancing, art exhibitions, etc. /m² R17.500 – R25.000
Conference Centres
1. Conference centre to international standards /m² R32.000 – R40.000
Retirement Centres
1. Dwelling houses :
• middle class /m² R10.300
• luxury /m² R14.500
2. Apartment block :
• middle class /m² R10.600
• luxury /m² R16.400
Rode’s Report 2024:2 XX Annexure 4

3. Community centre :
• middle class /m² R13.900
• luxury /m² R20.300
4. Frail care /m² R16.500
Schools
1. Primary school /m² R8.200 – R9.500
2. Secondary school /m² R9.800 – R10.500
Hospitals
1. District hospital /m² R34.000
Note: Hospital rates exclude allowances for furniture, fittings, and equipment (FF&E).
Stadiums
1. Stadium to PSL standards /seat R42.000 – R65.000
2. Stadium to FIFA standards /seat R98.000 – R129.000
3. Stadium pitch to FIFA standards /pitch R28.000.000 –
R33.000.000
Prisons
1. 1.000 Inmate prison /inmate R733.000 – R779.000
2. 500 Inmate prison /inmate R756.000 – R872.000
3. High/maximum security prison /inmate R1.165.000 – R1.540.000
Infrastructure airport development costs
Rates exclude any future escalation, loss of interest, professional fees, VAT and ACSA direct
costs.
Apron stands (incl. associated infrastructure)
1. Code F stand (85m long x 80m wide = /m² R6.900
6.800m²)
2. Code E stand (80m long x 65m wide = /m² R7.300
5.200m²)
3. Code C stand (56m long x 40m wide = /m² R9.300
2.240m²)
Taxi lanes (incl. associated infrastructure)
1. Code F taxi lane (101m wide) /m R231.000
2. Code E taxi lane (85m wide) /m R194.000
3. Code C taxi lane (49m wide) /m R115.000
Service roads
1. Service road (10m wide) /m R23.000
2. Dual carriage service road (15m wide) /m R29.000
Taxi ways (incl. associated infrastructure)
1. Code F taxi way (70m wide) /m R172.000
Runways (incl. associated infrastructure)
1. Code F runway (3.885m long x 60m wide = /m R387.000
233.100m²)
Rode’s Report 2024:2 XXI Annexure 4

Parking (excl. bulk earthworks)

1. Structured parking /bay R237.000
2. Basement parking /bay R355.000
Perimeter fencing/ Security gates
1. Perimeter walls with perimeter intrusion /m R10.800
detection (PIDS)
Terminal & other buildings (excl. bulk earthworks, external site & services works)
1. Terminal building (excl. baggage & X-ray, air /m² R38.000
bridges, seating & aircraft docking system)
2. Telescopic air bridges /unit R14.260.000
3. Aircraft Docking System /unit R2.053.000
Building services
The following rates are for building services (mechanical and electrical), which are applicable to
typical building types in the categories indicated. Rates are dependent on various factors related
to the design of the building and the requirements of the system.

In particular, the design, and therefore the cost of air-conditioning, can vary significantly
depending on the orientation, shading, extent and type of glazing, external wall and roof
construction.

Electrical installation
1. Office buildings — standard installation /m² R950 – R1.400
2. Office buildings — sophisticated installation /m² R1.400 – R1.750
3. Office buildings — UPS, substations, standby /m² R650 – R850
generators
4. Residential /m² R850 – R1.400
5. Shopping centres /m² R1.400 – R1.800
6. Hotels /m² R1.500 – R2.000
7. Hospitals /m² R1.950 – R2.850
Electronic installation
1. Offices — standard installation /m² R450 – R650
2. Offices — sophisticated installation /m² R650 – R950
3. Residential /m² R400 – R650
4. Shopping centres /m² R900 – R1.200
5. Hotels /m² R850 – R1.200
6. Hospitals /m² R900 – R1.300
Note: Electronic installation include access control, CCTV, public address, fire detection, data
installation, WiFi, CATV, PABX (Private Automatic Branch Exchange) and Building Management
Systems (BMS).
Fire protection installation
1. Sprinkler system including hydrants and hose
reels (excluding void sprinkler) /m² R400 – R500
Rode’s Report 2024:2 XXII Annexure 4

Air-conditioning installation
1. Ventilation to parking/services areas /m² R400 – R650
2. Office buildings: console units /m² R1.050 – R1.500
3. Office buildings: console/split units /m² R1.200 – R1.900
4. Office buildings: package units /m² R1.750 – R2.600
5. Office buildings: central plant /m² R2.150 – R3.350
6. Residential: split units /m² R1.200 – R1.900
7. Shopping centres: split units /m² R1.400 – R2.000
8. Shopping centres: package units /m² R1.750 – R2.600
9. Shopping centres: evaporative cooling /m² R1.100 – R1.650
10. Hotels: public areas /m² R2.150 – R3.350
11. Hospitals: central plant /m² R2.800 – R4.450
12. Hotels: console units /key R27.000 – R36.750
13. Hotels: split units /key R36.700 – R56.150
14. Hotels: central plant /key R73.450 – R110.150
15. Hospitals: operating theatres /theatre R800.000 – R1.350.000

Notes

1. Regional variations: Construction costs normally vary between the different provinces of South
Africa. Costs in the Western Cape and KwaZulu-Natal, specifically upper class residential,
for example, are generally significantly higher than Gauteng due to the demand for this
accommodation. However, these rates are based on data received from Gauteng, where
possible. Be mindful that cost differences between provinces at a given point in time are not
constant and may vary over time due to differences in supply and demand or other factors.
Specific costs for any region can be provided upon request by any AECOM office in that region.

2. Value added tax (VAT): As the majority of developers are registered vendors in the property
industry, any VAT on commercial property development is fully recoverable. Therefore, to
reflect the net development cost, VAT should be excluded. Should the gross cost (i.e. after VAT
inclusion) be required, the VAT at the ruling rate (currently 15%) should be added.

Awareness must be made of the effect that VAT has on cash flow over a period of time. This will
vary according to the payment period of the individual vendor. However, in all cases, it will add
to the capital cost of the project to the extent of interest on outstanding VAT for the VAT cycle
of the vendor.

3. For guidance with regard to the cost of buildings rated under the Green Star South Africa
rating tool system, see the latest edition of the AECOM publication entitled “Quick Guide
to Green Design Attributes.”
Monthly forecast of in-contract building costs
(Haylett formula)
Rode’s Report 2024:2

Work group 180 Lump Sum Domestic Buildings (December 2021 = 100)

Forecast date: June 2024

2023 2024 2025 2026 2027 2028

Month Index % ch Index % ch Index % ch Index % ch Index % ch Index % ch
Jan 106,3 5,5 112,6 5,9 117,1 4,0 122,4 4,5 128,0 4,6 133,7 4,4
108,0 6,4 112,9 4,6 118,1 4,6 123,5 4,5 128,9 4,4 134,5 4,3
XXIII

Feb
Mar 109,0 6,3 113,6 4,2 119,1 4,9 124,4 4,4 129,8 4,4 135,5 4,4
Apr 109,0 5,3 114,2 4,8 119,4 4,5 124,9 4,6 130,4 4,4 136,1 4,4
May 109,5 4,2 114,4 4,5 119,9 4,8 125,4 4,6 131,3 4,7 136,8 4,2
Jun 109,1 3,3 114,6 5,0 120,0 4,7 125,8 4,8 131,9 4,9 137,4 4,2
Jul 109,8 3,2 114,9 4,7 120,6 5,0 126,4 4,8 132,4 4,8 138,1 4,3
Aug 110,2 4,1 115,3 4,6 120,8 4,8 126,5 4,7 132,4 4,7 138,4 4,5
Sep 110,9 5,3 115,7 4,4 121,1 4,7 126,7 4,6 132,8 4,8 138,6 4,4
Oct 111,1 6,0 116,1 4,5 121,4 4,6 127,0 4,6 132,8 4,6 138,7 4,5
Nov 111,8 6,3 116,2 4,0 121,6 4,6 127,2 4,6 133,0 4,6 139,0 4,5
Dec 112,1 6,5 116,4 4,3 121,9 4,7 127,5 4,6 133,3 4,6 139,2 4,4
Avg. 109,7 5,9 114,7 4,6 120,1 4,7 125,6 4,6 131,4 4,6 137,2 4,4
Annexure 5

Source: Bureau for Economic Research (BER)

Rode’s Report 2024:2 XXIV Annexure 6

BER Building Cost Index

(non-residential tender prices)
Dec 2021 = 100

First Second Third Fourth

Average
quarter quarter quarter quarter
2013 66,1 64,0 67,2 66,6 66,0
% ch 11,7 5,4 8,6 4,8 7,6
2014 66,2 71,6 73,1 75,2 71,5
% ch 0,1 11,9 8,7 12,9 8,4
2015 75,2 75,3 74,5 76,7 75,4
% ch 13,6 5,2 2,0 2,0 5,5
2016 73,9 79,8 81,5 80,3 78,9
% ch -1,7 6,0 9,5 4,8 4,6
2017 80,5 82,8 82,3 84,7 82,6
% ch 8,9 3,7 0,9 5,4 4,6
2018 86,5 88,5 87,8 89,7 88,2
% ch 7,5 7,0 6,6 6,0 6,8
2019 90,3 93,4 90,9 93,8 92,1
% ch 4,3 5,5 3,6 4,5 4,5
2020 92,7 93,1 96,2 94,7 94,2
% ch 2,6 -0,4 5,8 0,9 2,2
2021 95,6 96,3 96,8 100,0 97,2
% ch 3,1 3,4 0,6 5,6 3,2
2022 101,0 109,0 105,4 106,0 105,3
% ch 5,6 13,2 8,9 6,0 8,4
2023 113,1 110,5 115,8 122,2 115,4
% ch 12,0 1,4 9,9 15,1 9,5
2024 129,7 118,7
% ch 14,7 7,4
Source: The data is from the Building Cost Report of the Bureau for Economic Research (BER),
tel. 021 808 9780 and is published with its permission.
Prime overdraft rate at month-end (%)
(proxy for trends in mortgage rates*)
Rode’s Report 2024:2

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year
2000 14,50 14,50 14,50 14,50 14,50 14,50 14,50 14,50 14,50 14,50 14,50 14,50 14,50
2001 14,50 14,50 14,50 14,50 14,50 13,75 13,50 13,50 13,00 13,00 13,00 13,00 13,77
2002 14,00 14,00 15,00 15,00 15,00 16,00 16,00 16,00 17,00 17,00 17,00 17,00 15,75
2003 17,00 17,00 17,00 17,00 17,00 15,50 15,50 14,50 13,50 12,00 12,00 11,50 14,96
2004 11,50 11,50 11,50 11,50 11,50 11,50 11,50 11,00 11,00 11,00 11,00 11,00 11,29
2005 11,00 11,00 11,00 10,50 10,50 10,50 10,50 10,50 10,50 10,50 10,50 10,50 10,63
2006 10,50 10,50 10,50 10,50 10,50 11,00 11,00 11,50 11,50 12,00 12,00 12,50 11,17
2007 12,50 12,50 12,50 12,50 12,50 13,00 13,00 13,50 14,00 14,00 14,00 14,50 13,17
2008 14,50 14,50 14,50 15,00 15,00 15,50 15,50 15,50 15,50 15,50 15,50 15,00 15,13
2009 15,00 14,00 13,00 13,00 11,00 11,00 11,00 10,50 10,50 10,50 10,50 10,50 11,71
XXV

2010 10,50 10,50 10,00 10,00 10,00 10,00 10,00 10,00 9,50 9,50 9,00 9,00 9,83
2011 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00 9,00
2012 9,00 9,00 9,00 9,00 9,00 9,00 8,50 8,50 8,50 8,50 8,50 8,50 8,75
2013 8,50 8,50 8,50 8,50 8,50 8,50 8,50 8,50 8,50 8,50 8,50 8,50 8,50
2014 9,00 9,00 9,00 9,00 9,00 9,00 9,25 9,25 9,25 9,25 9,25 9,25 9,13
2015 9,25 9,25 9,25 9,25 9,25 9,25 9,50 9,50 9,50 9,50 9,75 9,75 9,42
2016 10,25 10,25 10,50 10,50 10,50 10,50 10,50 10,50 10,50 10,50 10,50 10,50 10,46
2017 10,50 10,50 10,50 10,50 10,50 10,50 10,25 10,25 10,25 10,25 10,25 10,25 10,38
2018 10,25 10,25 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,00 10,25 10,25 10,08
2019 10,25 10,25 10,25 10,25 10,25 10,25 10,00 10,00 10,00 10,00 10,00 10,00 10,13
2020 9,75 9,75 8,75 7,75 7,25 7,25 7,00 7,00 7,00 7,00 7,00 7,00 7,71
2021 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,00 7,25 7,25 7,04
2022 7,50 7,50 7,75 7,75 8,25 8,25 9,00 9,00 9,75 9,75 10,50 10,50 8,79
2023 10,75 10,75 11,25 11,25 11,75 11,75 11,75 11,75 11,75 11,75 11,75 11,75 11,50
2024 11,75 11,75 11,75 11,75 11,75 11,75 11,75
Source: S&P Global
Annexure 7

*Individual mortgage rates will depend on the creditworthiness of the mortgagor.