Commercial Property Update
As our economic indicators start showing signs of improvement we are experiencing a cautious sense of optimism in the commercial and industrial property industry with enquiries and demand for premises on the increase.
Underpinning this interest are the key drivers of commercial growth in KZN being the King Shaka International Airport and the dig-out port.
Transnet has purchased the old Durban Airport site to establish a dig-out port that will double the existing capacity to include 16 container berths, 5 automotive berths and 4 liquid bulk berths. Phase 1 is set to be completed in 2019 at a cost of R50b and full completion scheduled for 2035.
The inevitable consequence of the dig-out port will be an increase in demand for commercial and industrial property in the South Durban basin, already the 2nd largest contributor to the country’s economy at nearly 17% of GDP.
The success of the King Shaka Airport and Dube TradePort with its long-term strategic objective to establish an Aerotropolis or a “city within a city” will create a world-class state of the art operational environment.
Dube TradePort has entered its second phase of implementation having successfully completed phase one which included the Cargo Terminal, Trade House, 29o South, Dube Square, Trade Zone and Dube City infrastructure, AgriZone and the IT and Telecommunications platform.
The 16ha Dube AgriZone is the most technologically advanced integrated agricultural cluster development providing the largest climate-controlled growing area under glass anywhere in Africa. Other exciting developments within Dube TradePort include :
* a road link to the Watson Highway
* construction of R28m state of the art flight kitchen facility
* Air Mercy Services
* construction of R15m warehouse for Gift of the Givers Foundation
* R350m investment from a private sector property group for nearly 100,000 sq.m. to cater for air freight logistics.
Whilst key developments such as Cornubia and Bridge City in eThekwini are in the long-term also set to change the landscape of C&I property in KZN, there are a number of interesting smaller developments not to be ignored including Ridgeside Office Park, Beacon Rock and exciting new developments along the N2.
On the local front we have Robow Developments and FWJK poised to start construction of 20,000 sq.m. in Ballito Services Park North. With the limited availability of only 112 serviced sites available we are optimistic that more developers will be tempted to invest in the North Coast.
Written by:
Louise Gibson of ComProp
05 Aug 2015
Author Louise Gibson