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Nadine Mather and Chloë Loubser
Demand for Durban commercial property continues
According to Chantal Williams, leasing and sales broker for JHI Properties in KwaZulu-Natal, prime locations in Durban and to the north of the city continue to sustain a demand for commercial property.
"Standalone homes converted to commercial use and situated in good locations in Morningside and prime office accommodation in La Lucia Office Park continue to solicit a high level of interest and enquiries," says Williams.
"The nodes that are most in demand are predominantly Morningside, Durban North and Umhlanga, with ranging mainly from 80-500 sqm and occasionally slightly larger premises.
"Businesses showing interest are call centres, financial corporations, IT related businesses and retail stores. The retail trade remains strong, particularly in the Musgrave Road area and Morningside. There seems to be a surge in new business ventures springing up within these nodes, including cocktail bars, restaurants and retail outlets. There are also enquiries from those previously working from home now seeking business premises."
Williams says achievable rentals in the Morningside area range according to location, with the Florida Road/Cowey Road and Windermere Road nodes fetching rentals (excluding VAT) of R100 per square metre for A-grade premises with on-site parking and good exposure. In the lower end of Morningside in the Stamfordhill Road area, rentals are in the region of R75 per square metre. In the Musgrave area, where some 3000 sqm of office stock is available, asking rentals are from R100 per square metre.
"In the areas north of the Umgeni River, including Durban North, La Lucia and Umhlanga, depending on location and the grading, premises can achieve rentals of R100 per square metre upwards and generally the smaller the size, the higher the rental. In the new Ridgeside area in Umhlanga, rentals of R135 per square metre are being achieved for office space with sea views, plus parking."
Also within the growth node north of Durban, in Riverhorse Valley, rentals are mainly in the region of R85 per square metres.
Public transport is a draw card for Durban's city centre and Williams recently concluded a transaction for 1036 sqm of office accommodation in Durban Bay House, a building that has been upgraded to AAA grade.
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