Centurion Office Space Offers Greater Occupier Bargaining Power
Because of an oversupply of office space in the central business district of Centurion and its surrounding areas, tenants now have increased bargaining powers when signing and renewing lease agreements. What’s more, another emerging trend is that tenants opt for smaller spaces, with shorter lease periods. This is according to the Broll Centurion CBD and Surrounds Office Market Report.
According to Pieter Snyders, Broll commercial broker for Centurion CBD and Surrounds, landlords are accepting smaller tenants. “As a result of oversupply, landlords are accepting smaller tenants in premium grade buildings and also offer incentives such as rent-free periods and larger tenant installations instead of reduced rentals. Currently, the oversupply is not a cause for concern as there are larger tenants looking for space and Centurion offers great opportunities for tenants looking for quality offices in a convenient location at affordable rentals.”
Centurion Central Business District Vacancy Rates
Traffic congestion, specifically on the John Vorster on and off ramps into Eco Park and Highveld Technopark throughout peak hours remain a concern. According to the Office Market Report, the first quarter of 2017 saw the Centurion central business district recording an overall vacancy rate of almost 17%, with A grade space having an 11% vacancy rate, and B grade space being 22% vacant.
The surrounding Highveld Technopark and its extensions endured an overall 9% vacancy rate with it’s a grade space, and 10% for its B grade space. Even though Centurion does have an oversupply of office space, it provides numerous opportunities for tenants from smaller P grade office spaces, to refurbish options for larger renters. It’s still centrally located with great value and good public transport, which will always be attractive to tenants.
Image courtesy of : Wallrich