(Pretoria, 22 January 2007) Rental activity in Pretoria's commercial property market is heating up, particularly in Centurion and the eastern Suburbs, according to Elza Human of Broll Properties.

"Vacancy levels in the A and B Grade buildings in the CBD are extremely low at the moment thanks to government-related occupancy, with the installation of a further 35 CCTV security cameras further enhancing the area's appeal for security conscious tenants. This renewed optimism about the city has been the catalyst for the refurbishment of C and D Grade buildings in the centre and western side of the CBD into residential apartments.

"The shortage of A Grade space in the CBD has pushed many companies and financial institutions to the eastern suburbs. The completion of the Hillcrest Boulevard Retail Centre as well as the adjoining Hillcrest Office Park has further reinforced this node. The final phase of the offices is underway, with all this space already pre-let," she says.

Motor dealerships are also mushrooming up, with a new hub on the corner of General Louis Botha Avenue and Garsfontein Road, and another set for development on a rezoned, formerly residential strip near Silver Lakes. "The Lynnwood side of Silver Lakes is set to develop rapidly in the near future, with a new shopping centre already going up. There is clearly a need for commercial space here as well," Human adds. "Already, there are a number of sectional title developments under construction that are being sold for around R10 500 per bulk square metre, with rentals fetching around R75 per square metre.
 
"Brooklyn has developed into the "Sandton of Pretoria" with rentals rising to about R90 per square metre, gross, for existing space and up to R100 per square metre net for new developments. The Brooklyn Boulevard development is well underway, and will provide AAA Grade office space. This area is also in high demand among the diplomatic and legal fraternities, the latter finding its close proximity to the High Court appealing." 

There's significant activity in Centurion, with the added appeal of recently upgraded road infrastructure. Centurion is also seen as an alternative midpoint between Johannesburg and Pretoria, particularly alluring in the face of the unbearable congestion around the Midrand node," Human continues.

"There's a fair amount of space available in Centurion, with rentals more affordable on the Highveld Technopark side. Centurion Gate is under development at present, and we predict that the rental rates here keeping pace with those in Brooklyn, at between R80 and R95 per square metre, particularly after the refurbishment of the Centurion Mall" she says. "There is land available for further development around Centurion though, making it a prime location in the face of a shortage of land suitable for commercial and light industrial property across Gauteng."