Bruma Bruma

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FOR SALE GLA: 8,744m² | POA Web Ref: CL24404

GLA 8,744m² LIBERTY GARDENS - BRUMA Gross Monthly Rental R999,999,999 Zoning Mixed Use AUCTION 20 SEPTEMBER @ 12H00 AT THE WANDERERS CLUB, NORTH ROAD, ILLOVO, SANDTON, JOHANNESBURG 5 Floors Office Building GAI: R4 692 242.16 Located close to China Mall, Eastgate Mall and Bedford Centre. Located east of Johannesburg CBD the Bruma area is in close proximity to Berdfordview and Kensington suburbs. Good proximity to O.R Tambo International good access to the N12 and N3 highways.

Additional Information

AUCTION 20 SEPTEMBER @ 12H00 AT THE WANDERERS CLUB, NORTH ROAD, ILLOVO, SANDTON, JOHANNESBURG

Brett Pozniak

Office Number: (+27) 11 441 4108 Cell: 0833802014 Email: [email protected]

All rentals / prices quoted exclude V.A.T RESEARCH Office Market Report May 2016

Bedfordview and Bruma, Gauteng

A-grade (Bedfordview: 59% Bruma: 54% of stock)

R115/m² gross

Broll Insight • Amenities Schools, retail, travel and leisure.

• Area’s Security Good.

• Availability of Space Small node with limited stock.

1 = Poor 5 = Excellent Highlights • Accessibility

Situated around the Gillooly’s Interchange, the Trends intersection of the N3 Western Bypass and the R24 • There is strong demand for modern quality and (Johannesburg CBD to O.R. Tambo International energy-efficient office buildings in Bedfordview, Airport (ORTIA)). though supply is limited. Additionally, shortage of P-

grade stock is evident. • Aesthetic Appeal • The node is popular among medium to small office Close to freeways, with good schools, attractive users seeking affordable rental space. homes, ample retail and a clean, well-managed

environment. Take-up

• Bedfordview vacancies have increased from • Affordability around 7% in Q1:2015 to around 9% as at Q1:2016, P-grade: R145 – R155/m²/month gross with Bruma vacancies having declined drastically A-grade: R105 – R125/m²/month gross B-grade: R85 – R100/m²/month gross

from close to 31% in Q1:2015 to around 10% to grade makes up 30%. Minimal P-grade stock exists date. and the remainder is C-grade. Furthermore, some • In Bedfordview 25% of the Q1:2016 vacancies are landlords have started to upgrade their buildings to A-grade, with B- and C-grade representing roughly modern A-grade offices. 38% each. In Bruma, 61% of vacancies are B-grade followed by C-grade (21%) and A-grade (18%). In In Bruma, which is characterised by its highly general, space on the market is medium sized units demanded A- and B-grade stock (i.e. 54% and 43% of (300m² to 800m²) with the occasional unit in excess total stock respectively), vacancies are around 3% and of 3,500m². 14% for each grade.

Tenants Parking tends to be fairly reasonably priced when • The node is particularly popular with the travel compared to nearby offices nodes, though industry (due to its proximity to ORTIA), consulates Bedfordview is slightly more expensive than Bruma. and service industries. Parking for A- and B-grade space is marketed from • Landlords are willing to negotiate gross rentals in R400/bay/month up to R550/bay/month while open order to attract or retain tenants. bays are the most affordable at R250 to R325/bay/month. Market Overview For the next 12 months, it is anticipated that both Bedfordview and Bruma are two upmarket demand and supply will remain stable. neighbouring suburbs in western Ekurhuleni and eastern Johannesburg respectively. The node is Construction Activity positioned around the Gillooly’s Interchange, at the intersection of the N3 Eastern Bypass and the R24, Construction and speculative development levels are linking the Johannesburg CBD to ORTIA. The N12, N3 low with some buildings undergoing refurbishment. and M2 interchanges are a key focus of commercial Current developments are mostly tenant-driven, built development in the node, allowing for both north-south to specification and pre-let arrangements. and east-west movement and accessibility. The areas’ strategic positioning, accessibility and proximity to the The node displays a distinct shortage of P-grade stock, ORTIA, make the node highly sought after for small- to though the development of HQ Bedfordview, a medium-sized head offices, with a particular emphasis sectional title scheme offering space measuring from on travel-related businesses. 140m² to 8,000m², will help to meet the demand for high quality space. In Bedfordview the predominant grade is A-grade offices, constituting 59% of the total stock, while B-

Bruma development levels are of a similar nature, with limited new stock coming onto the market, with the exception of Eastgate Office Park, a 7 storey building with a GLA of 9,000m².

Conclusion

The growing interest from many corporate tenants in the Bedfordview and Bruma node has been noted, especially where the demand is based on ideal location and the need to escape the congestion of mainstream corporate nodes.

Grade Overview Prime Grade A-Grade B-Grade Space in demand (m²) 200 – 5,000 100 – 4,000 50 – 4,000 Lease escalation 8.5% 8.5% 8.5% Lease operating cost escalation 9% 9% 9% Gross asking rentals (R/m²/month) 155 125 100 Gross achieved rentals (R/m²/month) 145 105 85 Length of lease (years) 3 3 3

Broker Divisional Director Research Matthew Roro Elaine Wilson Phone +27 11 441 4260 Phone +27 11 441 4083 Mobile +27 76 363 8727 Email [email protected] Email [email protected]

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