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The latest Rode Report indicated that the highest office rental costs are in Rosebank and not in Sandton. Rosebank currently averages R245/m². Melrose Arch is next at R230/m² and Sandton and the V&A Waterfront both average R220/m². Rosebank’s current office vacancy is only 7% which is much less than the 18% vacancy in Sandton. In other words, 18% of office space in Sandton is currently empty and not rented out which is something that must come as a surprise to most of us and indicating that Sandton’s popularity has declined dramatically.
It is very interesting that the area right next to our offices is the area that has become the most popular with the most expensive rentals as well as the lowest vacancy and that Sandton does not seem to be up to its previous glory. If our offices, in Jan Smuts Avenue, were rented out at the Rosebank rate, the monthly rental for the offices would be R94,000 a month.
Posted by Michael de Broglio on Wednesday 25-Sep-19
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Comments
Sinead said:
on Tuesday 22-Oct-19 09:38 AM
Who would have ever known that Rosebank is more expensive than the V&A? And Sandton?? I wonder why the vacancy percentage in Sandton would be higher though.
I must say - I have noticed how much more popular Rosebank has become - with all the restaurants and pop up stores in the area, it makes it more enticing to be there than Sandton. The office buildings are also a lot newer in Rosebank than Sandton. Even apartments popping up at every corner.
Interesting to see these stats.
Ashleigh said:
on Tuesday 22-Oct-19 09:11 AM
Rentals in general are crazy. I must say that agents would rather have building's and houses unutilized then renting it out at a cheaper rental. Why would you want to rent at a rate of R94000.00 a month anyway, rather buy.
Roxanne Rautenbach said:
on Tuesday 22-Oct-19 09:08 AM
The beauty is what keeps it expensive
Melissa said:
on Friday 11-Oct-19 03:19 PM
Rosebank is a beautiful area to live and work, but it's too expensive and traffic is a nightmare, so will think twice before buying or renting a place in Rosebank
Daniella said:
on Thursday 10-Oct-19 04:49 PM
That's crazy however when I go to Rosebank Mall or the general area there is office building after office building and they each are designed so beautifully and not one building looks the same so I can understand why it would be so expensive.
Claudia B said:
on Thursday 03-Oct-19 08:19 AM
Rosebank is a very beautiful area, it is shocking how expensive it really can be.
Cornelie said:
on Wednesday 02-Oct-19 09:43 AM
It is shocking what you pay for the area and even more surprising that Sandton is not the up market place anymore, but Rosebank is busy expanding and so busy.
Bianca Taljaard said:
on Wednesday 02-Oct-19 07:50 AM
Rosebank is beautiful.
I will however not be able to live in the city, it is way to busy.
Mathilda Du Preez said:
on Monday 30-Sep-19 02:08 PM
Rosebank is a nice area, close to everything and traffic is not that crazy YET.
All the new apartments popping up really resemble the apartment styles in Europe small, convenient and modern.
Angelique Jurgens said:
on Monday 30-Sep-19 12:43 PM
Almost every building in Rosebank right now is new. They have demolished everything to the ground and built up. Majority of the office and apartment buildings are completely modern and are essentially skyscrapers. If you ask me, Rosebank is the new Sandton. Traffic is about to become a nightmare.
Lourien said:
on Monday 30-Sep-19 08:20 AM
Location, Location, Location. This is something that we always need to consider, if you have a good location for your business it will increase your income, but the wrong location can drastically influence your business which might mean it will not reach its full potential.
I think that a major problem with Sandton is firstly the traffic in and out, the roads have not been planned properly for such a huge amount of traffic, which means everyone is always sitting in traffic for hours and some staff might even be late.
This is just a matter of time until Sandton has to start to lower its rental prices for offices space in the months to come especially if the offices are empty.
Brumilde Cronje said:
on Monday 30-Sep-19 08:01 AM
It is true, There is stunning building across from our Offices, when we inquired about the rental, and take note that we would not get the full property just a space, it was about R100 000 a month. Shocking that you still need to make a profit and pay for water and electricity and staff salaries and overheads. I wonder if the home owners also are renting their private homes out at these prices.
Nicolle said:
on Sunday 29-Sep-19 01:50 PM
I'm inclined to agree with the majority of the comments below. It would seem that there is a shift towards less being more. Rosebank in itself is more practical and centralised suburb.
Alexis said:
on Friday 27-Sep-19 12:13 PM
Sandton is not a place I would like to live, the traffic alone is intense. So I am not surprised that Rosebank has become the next best thing. It is a very nice area, the mall is not too shabby and there are a number of things that can be done in and around the area. It can also be seen as a central point in order to get to a number of places as well.
Joyce said:
on Thursday 26-Sep-19 04:48 PM
I think all these new beautiful buildings make Rosebank more popular than Sandton
Jessica M said:
on Thursday 26-Sep-19 08:53 AM
There is really nothing cheap in the Rosebank area. It is always busy too. I can imagine that all the businesses in this area are doing well. I guess with the price of rentals here one doesn't have a choice but to make sure they are a success.
Thembi said:
on Wednesday 25-Sep-19 04:49 PM
I love rosebank than sandton I don't like renting u waste money is better you do rent to buy because if you rent u wont go forward atleast if u do rent to buy at the end u will benefit rosebank buildings are very nice than sandton.
Nikita said:
on Wednesday 25-Sep-19 03:56 PM
I am not surprised that Rosebank is in such high demand considering all the new buildings that are popping up, the gautrain being very convenient to access and the traffic generally flowing much better than Sandton. What a prime property investment to have
Ziyanda said:
on Wednesday 25-Sep-19 03:46 PM
Buying a property is always the best rather than renting because you end up spending a lot of ,money you could have saved.
Jadine Richards said:
on Wednesday 25-Sep-19 03:27 PM
I can fully understand why Sandton office space is still available. People are trying to get away from the busy hubs. People these days, especially Sandton professionals, are all about efficiency, time management and healthier lifestyles. Sitting in Sandton traffic doesn't tick the boxes with any of these new millennial ideals.
Lucretia said:
on Wednesday 25-Sep-19 09:40 AM
I think Rosebank is more attractive than Sandton because it is not as congested as Sandton.
Courtney said:
on Wednesday 25-Sep-19 08:54 AM
I love that building.
It is so beautiful,
Renting is a big money making story. Rather buy if you can.
Fikile said:
on Wednesday 25-Sep-19 08:41 AM
Another reason why i don't like renting, it always goes up. It's not easy starting your own thing and it gets more and more difficult we your business is small and making it big is a huge challenge and renting makes it worse because you end up feeling like you are not moving forward.
Michelle Smillie said:
on Wednesday 25-Sep-19 08:10 AM
In times like this the value of owning your own property comes to show. Although it is not an option for every company, especially start-up companies, to own the property it is doing business from, it is certainly worth it to aspire towards it.
sandra said:
on Wednesday 25-Sep-19 07:31 AM
According to the Investec Property Fund - Rental growth is remaining under pressure with visible or foreseeable oversupply across all major offices nodes, in particular Sandton, Bryanston and within the next 18 months. For the six months to end-March, the group reported an average rental reversion rate of negative 6.9%.
david said:
on Wednesday 25-Sep-19 07:12 AM
maybe, once the cranes have gone and the construction is over, sandton rents will go up again.
for the last 5 - 10 years sandton has been an absolute nightmare, and i am amazed they had any tenants at all.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
