Industrial and Logistics Property Keeps Growing
Reports show that the inflow of imports of most consumer goods is contributing to the increasing demand for storage, logistics and warehousing services in South Africa, including industrial property.
Zandile Makhoba, head of research for Sub-Saharan, JLL, says that “As the technology economy advances, tertiary sectors – which provide products and services to all other industries in the economy – will continue to dominate. It is this context in which industrial and logistics accommodation is growing in strength.” It is now that looking for industrial property for sale could greatly benefit buyers in South Africa.
A Change in Development Specifications
With the change in demand for warehousing and logistics accommodation, comes a change in the development specifications for buildings. In the past, industrial buildings required larger office components in order to host higher employee numbers. Today in modern industrial buildings, the office component does not need to be as big and buildings are made to accommodate increased machinery and technology as opposed to people. The development specifications of an industrial building is an important aspect to look out for when considering the industrial property for sale as a buyer today.
Four key factors required by modern industrial occupiers today are:
- Location – Is the building centrally located in or near major cities?
- Accessibility – How easy is it to access the building?
- Visibility – Can our building and thus branding be easily noticed?
- Proximity to Harbors – Can we get our products to and from their facilities easily?
Other needs also include larger yard space for trucks and cargo vehicles, high volume maxi units and security.
No Threat of Oversupply in the Market
With increasing demand, there is no real threat of oversupply of industrial property in the market. However, there is a need for owners to cater to tenants who are looking for more flexible lease terms. These adjusting lease terms are an indication of the increasing presence of international occupiers and our local market is starting to align with international norms in the industrial leasing market.
If there was ever a time to take a look at and consider the industrial property for sale, this is it. Knowing that there is no great threat to the market makes it more reassuring for buyers who can take comfort in knowing that with the right building, in the right location and at the right price, there are endless rental opportunities.
For more information on industrial properties coming up for auction, be sure to contact In2assets today on 0861 444 769 or visit www.in2assets.com!