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Rush for warehousing: Warren Jack sees increasing demand for investment in warehousing locally

Rush for warehousing: Warren Jack sees increasing demand for investment in warehousing locally

Judging by the number of estate agent boards offering warehouse space in the commercial areas of Port Elizabeth, one could surmise that there is currently a glut of warehousing in the city. That is not the case, according to Warren Jack of Warren Jack Property Group.

“Agents are placing boards illegally and the abundance of boards has created a perception that there is plenty of warehousing available in PE, especially to out-of-towners, which leads buyers to believe that they can purchase space for bargain prices. 

“However, right now, we are seeing a shortage of quality warehousing in PE. In my 25 years in this industry, I have not seen demand for self-users as high as it is now,” says Jack.

He says that it is the smaller office or warehousing parks such as Jet Park, next to the airport, and the Willow Road Business Park that are receiving the highest rental rate per square meter for smaller units.

“These facilities cater for the large number of small businesses that are branches of larger national concerns. They need a relatively small amount of office space in a convenient location,” informs Warren.

He says that previously, the average cost of warehousing floor space in PE was R20 per m², but today, it is around R45 a m² in the well-positioned, newer and relatively small warehouses.

“Even Markman Industrial Township, which was stagnant for many years, is now seeing an increase in demand. This is probably due to the developments at the Coega IDZ, but it is still a positive growth. Prices in Markman are now sitting at about R20-R25 per m² and rising and this is for some pretty old buildings,” he says.

“Deal Party, which has been the mainstay of warehousing in the city for many years, has very little to let. The warehouse which was tenanted by Freightmax was recently sold for R14.1 million for a 3000m² warehouse and 4000m² yard in Burman Road, Deal Party, which was valued at R9.1 million.”

According to Warren, the occupancy rate for the smaller warehouses at Jet Park, Willow Road Business Park and the Greenbushes Industrial Park is at about 95%, the highest that has been seen for a while.

“With the Baywest Mall almost complete, we can expect Greenbushes Industrial Park to be in even higher demand,” concluded Warren.


Warren Jack continually strives to market and promote commercial property as a professional and it is pleasing to note that his efforts have resulted in being branded on SAA’s official website as the ‘preferred supplier of commercial property in the Eastern Cape’.  This is the feather in the on-going success of Warren Jack Property Group.