Property Trends Forecast For 2018
Even though companies might be experiencing internal growth, and be in need of supplementary office space, current trends in South Africa’s commercial property sector indicates that office tenants and building owners would rather try and employ the services of working space specialists. They would also rather encourage mobile offices, instead of packing up and relocating to larger office space.
Another clear trend sweeping through the industry is actually the global trend of shrinking office sizes. In the past few years, businesses have started to move away from individual cubicles and offices, favouring a more social work setting. This helps to minimalize workspace, resulting in landlords and property managers finding themselves renting out to more tenants, with each utilising smaller space with more employees. It’s also true that small to medium companies have also started opting for flexible leases, subdividing space and sharing risk with other businesses.
What To Expect In The Retail Property Sector
South Africa holds the reputation as being the world’s sixth most ‘malled’ country. This, despite the uncertain economic climate and various other contributing factors that have to be considered for a mall or shopping centre to be successful, and provide financial conviction.
Additional pressure is being placed on consumers’ disposable incomes, showing a decrease in foot traffic in shopping centres, and ultimately in individual shoppers’ spending. However, it doesn’t seem to be putting a dampening on retailers and shopping centres, with more malls being scheduled for opening throughout 2018.
Industrial property, on the other hand, is showing extreme resilience. Developers are continuing to build on risk, and continue to be rewarded with favourable uptakes in tenancy, in spaces such as warehouses. The logistics sector also seems to be the catalyst for more stability in the property sector in general. These are only a few of the real estate trends to keep a look out for in 2018.
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