Office Market Report Rosebank,

August 2019

Broll Insight Highlights

Accessibility Trends Situated in the north-western part of • Mixed-use developments, encompassing the live- between the CBD and , Rosebank is easily work-play concept, continue to increase in the accessible off the M1, , Oxford Road Rosebank node with the likes of Rosebank Link and Bolton Road, with the Gautrain Rosebank Station combining offices with specialist retail i.e. beauty, and bus feeder routes adding to the nodes accessibility. coffee shops and a Food Lovers Market. Additionally, 12 Baker Street has been converted Aesthetic Appeal from offices into residential apartments. While The Rosebank area is transitioning from an older office various older apartment buildings have been node to a mixed-use node comprising of high-end P- demolished and new modern apartments are being grade iconic office buildings, with trendy retail and developed. newly built residential apartments. • Serviced office space is becoming more prominent with a flagship WeWork having taken up space in Affordability Rosebank Link.

P-grade: R230/m²/month gross achieved A-grade: R160/m²/month gross achieved B-grade: R100/m²/month gross achieved

Amenities The revamped Rosebank Mall, The Zone @ Rosebank and The Firs are all located within the node offering a variety of retail, restaurants and services, with various hotels located along the nodes main arterials.

Security The Rosebank CID monitors security in the area with their own precinct security and visible policing as well as maintaining cleanliness and the aesthetic environment.

Rosebank Link Availability of Space

As at the Q2:2019, Rosebank recorded an overall vacancy rate of 7.0%. P-grade buildings recorded the Take-up lowest vacancy of 0.5%, A-grade stock was 9.4% vacant, While demand for space within the Rosebank CBD has while B-grade space recorded the highest vacancy rate been mostly positive, a downsizing trend in terms of of 11.9%. tenants’ space requirements has become evident. Generally, demand has been from smaller professional companies looking for space in the 100m² to 800m² range with access to available amenities in the area.

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Tenants Market Overview  Rosebank Link is home to the first WeWork flagship operation in , which has been Rosebank is in close proximity to major highways, roads attracting both large multi-national users as well as and prominent nodes such as Sandton, Melrose Arch, smaller scale entrepreneurs. Parktown and Hyde Park. The Gautrain, which has a  Standard Bank have taken over 33 Baker Street, station and bus stops in Rosebank, allows for easy the revamped Sasol Pension Fund building, access to and from the likes of Sandton, the extending its footprint in Rosebank. Johannesburg CBD and O.R. Tambo International  BP moved into the new, state of the art, purpose Airport. designed 199 Oxford Road located within the Oxford Parks Precinct. This development kick The face of the area has changed over the years, started this entire precinct linking the business attributable to a number of new and exciting nodes of Rosebank and Illovo along Oxford Road. developments. One such development includes the

likes of Rosebank Link, an iconic P-grade development built on spec which was fully tenanted upon completion. It provides a much needed pedestrian link between the Gautrain station and the Rosebank CBD as pedestrians are able to walk through the building upon existing the Gautrain station.

144 Oxford Road, a Growthpoint development, has been noted as recording vast tenant interest and is viewed as an example of confidence within the Rosebank office market. This development which offers 199 Oxford approximately 35,000m² of high end office space, in a prime location with traffic light access off Oxford Road, 199 Oxford Road Grade Overview is due for completion in October 2019.

P-grade A-grade B-grade The Rosebank CBD is also seeing numerous buildings Space in Demand 2,000 600 300 undergoing refurbishments, all contributing positively (m²) to the node. 13 Baker Street, known as The Gross Asking Rent 240 165 110 Conservatory, is one such building. This office (R/m²/month) development offers boutique style offices with only Gross Achieved 230 160 100 Rent (R/m²/month) 530m² of space still available to let.

Rent Escalation (%) 7.5% 8% 8% The pedestrian access from some of the new office Typical Lease buildings to shopping facilities, restaurants, health and 5 – 10 3 – 5 3 Period (years) fitness clubs as well as the Gautrain Station has made

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Rosebank a node of choice, attracting new tenants  144 Oxford, a 35,000m² office development which were previously located in areas such as Sandton, consisting of two office towers, is currently under Parktown and Central Johannesburg. construction.

Construction Activity 144 Oxford Currently, Rosebank is seeing a number of new developments under way as well as numerous redevelopments, which include but are not limited to:

 The redevelopment of The Bank, along Cradock Avenue, offering ground floor retail, the first Voco Hotel by the IHG Group in South Africa and

spectacular penthouse office space.

 Oxford and Glenhove Phase 2 is anticipated to be The Bank ready for occupation early 2020. Two buildings of 6,300m² and 3,400m² are being offered within this self-contained precinct environment on the periphery of Rosebank which enjoys excellent highway access.

Concluding Remarks

The confidence in the Rosebank office node is evident in the successful leasing of new developments, the construction of P-grade space and the refurbishment of older buildings, all creating exciting letting

opportunities within this vibrant office node.

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Rosebank, Gauteng Listings

144 Oxford Oxford Parks Precinct Gross Asking Rent Gross Asking Rent R265 R250 (R/m²/month) (R/m²/month)

Various ranging Negotiable Size of units Size of units from 300m² – ranging from available (m²) available (m²) 30,000m² 400m² – 10,00m² Lease Period Lease Period 3 – 5 5 – 10 (years) (years) 18 months to Availability November 2019 Availability build

Oxford & Glenhove – Phase 2 The Bank Gross Asking Rent Gross Asking Rent R230 R275 (R/m²/month) (R/m²/month) Various ranging Various ranging Size of units Size of units from 500m² – from 450m² - available (m²) available (m²) 6,300m² 1,800m² Lease Period Lease Period 5 – 10 5 – 10 (years) (years)

Availability October 2019 Availability June 2020

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Intel Report Contact Details

Divisional Director Head of Commercial Banking - Area Specialist Broll Property Intel Gauteng Jane Parker Elaine Wilson Rodney Luntz +27 11 441 4181 +27 11 441 4083 +27 11 441 4715 +27 83 443 0351 [email protected] +27 82 413 0874 [email protected] [email protected] Researcher Assisted By Daniella Martino Cheryl Reilly +27 11 441 4075 +27 11 441 4053 [email protected] +27 83 308 5158 [email protected]

Head Office & Country Contact Details

Broll Property Group (PTY) Ltd Broll Kenya Broll Nigeria (Head Office) Physical address: Westlands Business Physical address: 6th Floor, ED Physical Address: 61 Katherine Park, Acacia Block, Ground Floor, Building, 47 Marina, Lagos Island, Street, Sandown Ext. 54, Sandton. Waiyaki Way, Nairobi. Lagos. Phone: +27 11 441 4000 Phone: +254 712 668 448 Phone: +234 1 270 1890 Email: [email protected] Email: [email protected] Fax: +27 11 441 4452 Website: www.broll.co.ke Website: www.broll.com.ng Email: [email protected] LinkedIn: Broll Property Group Broll Mozambique Twitter: @Broll_insights Physical address: Rua Mateus, Broll Uganda Website: www.broll.com Sansao Muthemba, Maputo. Physical address: The Acacia Mall, Phone: +258 21 496 852 4th Floor, Plot 14-18 Cooper Road, Broll Botswana Email: [email protected] Kampala. Physical address: 1st Floor, The Hub, Website: www.broll.co.mz Phone: +256 312 531 500 iTowers, Gaborone. Phone: +267 398 1973 Broll Namibia Broll Zambia Email: [email protected] Physical address: Zanlumor Building, Physical address: Manda Hill Mall, 2nd Floor, Post Street Mall, Cnr Great East and Manchinchi Broll Ghana Windhoek. Roads, Lusaka. Physical address: 7th Floor, Ridge Phone: +264 6 137 4500 Phone: +260 21 125 5550 Tower, 6th Avenue, Ridge, Accra. Email: [email protected] Email: [email protected] Phone: +233 302 672 888 Website: www.brollnamibia.com.na Website: www.broll.co.za Email: [email protected] Website: www.brollghana.com

Broll Indian Ocean (Madagascar, Mauritius, Seychelles & Réunion) Physical address: Unit 3, 6th floor, Barclays House, Cybercity, Ebène. Phone: +230 468 1222 Email: [email protected] Website: www.broll-io.com

Disclaimer Broll Property Group (PTY) Ltd has taken every care in the preparation of this report. The sources of information used are believed to be accurate and reliable, but no guarantee of accuracy or completeness can be given. Neither Broll Property Group, nor any director, representative or employee of Broll Property Group, accepts liability for any direct or consequential loss arising from the use of this document or its content. The information and opinionsOFFICE contained MARKET in this REPORT report – are ROSEBANK subject to change without notice. No part or parts of this report may be stored in a retrieval system or reproduced or transmitted ______in any form or by any means, electronic, mechanical, reprographic, recording or otherwise, now known or to be devised, without prior consent from Broll Property Group. Page 6