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Melrose Arch Office Rental levels surpass Sandton CBD
Date published 1 February 2009
With gross rentals of over R200/m2 achieved, offices at Johannesburg's upmarket Melrose Arch node are giving the Sandton CBD, long acknowledged as the city's financial heartland, a run for its money.
Office rentals for AAA-grade space in Sandton CBD peak at R150/m2.
The latest phase of office development at Melrose Arch, 32 000m2 of AAA-grade commerical space including 'Offices on the Plaza' is on schedule for completion in 2009. Built above the new 28 000m2 Melrose Arch Shopping facility, the offices reflect Melrose Arch's urbanist planning principles, which blend complementary land uses.
"The new office phase at Melrose Arch looks set to achieve gross rentals of R200/m2, " says Melrose Arch Development Company sales manager Mark Uhlmann.
But it's not just rentals that are higher than in Sandton, add Fran Teagle, director of commercial property at Broll Property Group. "Parking rates at Melrose Arch are R700/month, compared with R600/month in Sandton." This is not slowing down demand - some 13 000m2 of space already let and substancial portions are currently under negotiation.
Melrose Arch is home to corporate heavyweights like Allan Gray, Bidvest, the Bond Exchange of SA, Xstrata Coal and Xstrata Alloys and Stanlib.
Author: South African Property Review
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