Office market demand remains relatively healthy in Umhlanga KZN

Office take-up for good quality space in Umhlanga north of Durban remains in demand, however, budget-conscious, good quality space in standalone buildings and with sea views is hard to find.

The Umhlanga area north of Durban continues to be a destination of choice for office users, with more and more corporate companies seeking space in this growth node, which offers appealing and secure, modern premises in a conveniently accessible business hub, says Chantal Williams, commercial broker at JHI Properties.

Ideally positioned within easy reach of key routes and set in scenic surrounds, this prime, sought after location continues to demonstrate resilience despite ongoing economic challenges which impact on the business sector in general.

The Umhlanga area remains in demand, however, budget-conscious, good quality space in standalone buildings and with sea views is hard to find.

Commenting on the office market in Umhlanga/La Lucia Williams says leases commonly range from about 60 to 200 square metres in size, although enquiries for 300 square metres and upwards are also received.

“There is a limited amount of small space, but still strong demand. Asking rental rates vary from around R95 to R145 per square metre,” she says.

“The bulk of the popular Ridgeside development in Umhlanga has been sold, and while there are now re-sales becoming available, there is not a great deal of new development stock available at present. Landlords are however, active in awarding us the mandate to market office stock as it becomes available,” she says.

Other nodes of interest in regard to the commercial property market include Morningside, Durban North and Westville. There’s a great deal of interest in the Morningside area from smaller companies looking to relocate and numerous start-up businesses working from home now wanting office space. These represent a broad cross-section of businesses from attorneys and accountants to media, IT and beauty salons.  Proving still popular in the Morningside area are standalone commercial houses with high traffic exposure that offer the ability to increase brand awareness.

Home to a variety of corporates, Westway Office Park is conveniently situated close to the freeway and Pavilion shopping centre.

The outlook for 2013 remains challenging and tenants are price-conscious.

“Good quality properties with ample on-site parking, good security and exposure remain in high demand. From a retail perspective, the demand is there however landlords are seeking blue chip tenants. There is a healthy demand for commercial property, primarily in regard to rentals, while from an investment or end user perspective well priced properties continue to change hands as property is seen by many as a stable long term investment.” concludes Williams.