Commercial property status: Local commercial property market trends and how NRG can assist you
Business Link met with James Conyers, Director and Investment Broker, at NRG Port Elizabeth to find out what is happening in the commercial property market in Port Elizabeth.
What’s the current state of the PE commercial property market?
With regard to the office sector of the commercial market, my feeling is that the PE market is quite flat at the moment and there is an oversupply of offices, particularly the office block developments, resulting in a relatively high vacancy.
Consider the vacancy rate in the Greenacres and Ring road office parks, ABSA House and the slow uptake of the Waterfront Business Park in Humerail and it points towards a soft market.
The smaller stand-alone office buildings, such as those in Newton Park and Walmer, remain in demand as this space is generally smaller than 300sqm's and, with the nature of the PE business market - national and regional satellite offices, small medical practises and work from home businesses - these sized properties suit those requirements well.
Within the industrial sector, there seems to be a good demand at the moment with, in particular, many ‘owner occupiers’ searching for suitable premises from which to operate. Industrial property is a particularly good asset class to hold in one’s investment portfolio as they are normally tenanted by a single tenant on a long term lease.
Lastly, the retail sector seems to be pretty flat at the moment, apart from the new Bay West development - due to open its doors on the 21 May - which is at 95% occupancy, there are not many, if any, new developments coming on line.
The only other centre which opened its doors in the last six months is the new SuperSpar Mall in Korsten which, I believe, is trading reasonably well.
The existing shopping centres have looked to consolidate and it remains to be seen what impact Bay West will have on their competitors.
What differentiates NRG from others in the commercial property space?
We offer a holistic approach to the commercial client, whether owner or purchaser. Besides sales and leasing brokering, we also offer a ‘cradle to grave’ type approach.
We’ve the best team of professionals, including town planners, architects, quantity surveyors, engineers, construction firms and brokers, who handle the project from initial concept to date of operation and anything in between.
We can deliver projects anywhere in the country and have experience in a variety of different projects in the retail, commercial and industrial sectors.
We understand that, ultimately, property is a long-term investment and in order for it to perform as an asset, the numbers need to make sense from the beginning!
Photo Caption: James Conyers, Director and Investment Broker, at NRG Port Elizabeth.
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