"The highest demand during the first quarter of 2011 was for office space in the space bracket of 250 to 600 square metres, with leases ranging between..."
Rosebank is fast becoming Johannesburg's third-largest high-rise business centre, after Sandton and the inner city, according to the research conducted by Broll, the commercial property services group.
"Rosebank is reviving, with great retail and new office developments, which are well-supported by the surrounding residential nodes and the Gautrain station," said Jane Parker, area specialist and commercial broker at Broll.
Leasing in the area had been busy in the early part of 2011 and demand for space was good, Parker said on Monday.
The highest demand during the first quarter of 2011 was for office space in the space bracket of 250 to 600 square metres, with leases ranging between three and five years, starting at 85 rand per square metre.
At the same time, the Rosebank management district and lower management district had been working in conjunction with various government and private partners to reduce crime, clean up the area and increase service delivery.
"Rentals in Rosebank had been slowly but surely climbing until the fourth quarter of 2008, when there was a steep increase. Rentals are now at a level where we've recently leased out 4,000 square metres of office space in Oxford Corner at a gross rental of R170 per square metre."
Parker ascribed these changes to all the new developments making additional office and residential space available, as well as to the boost the Gautrain gave Rosebank's popularity as a business node.
"The June opening of the Gautrain Station in Oxford Street has caused a flurry of activity in the property market, with new builds and revamps of older office buildings," Parker explained.
"Standard Bank has a 60,000 square metre office development underway for its own occupation, the iconic 9,000 square metre Oxford Corner development is complete, the second phase of the Zone is complete, and the Rosebank Mall Shopping Centre is scheduled for a major upgrade and extension.
"Nedbank Gardens and the fire station site on Bath Avenue are just awaiting a major tenant to kick-start their redevelopment. Plus 160 Jan Smuts Avenue - at the corner of Tyrwhitt Avenue in Lower Rosebank - is undergoing a massive upgrade."
He said the outlook for the next 12 months was that demand for space would continue to increase. However, since available space was also increasing, Broll's research indicated that actual sales would remain level.
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