Affordable industrial units in KwaZulu-Natal
Category Industrial Sector
One of Durban’s historically preferred industrial nodes, Westmead/Pinetown/New Germany continues to offer affordable rentals and attracts various businesses wanting to be located in the area.
Gross achieved rentals range between R45 per square metre for maxi units – R65 per square metre for midi units.
“This industrial node attracts many logistics, engineering and construction companies, it is stable and secure,” says Jim Grantham, Industrial Broker for Broll Property Group in KwaZulu-Natal
Grantham says the node is easily accessible via the N3 highway or King Cetshwayo highway, both connecting the node to the Durban CBD, which is approximately 20km away. The Metrorail and mini-bus taxis service the node.
He explains that according to the Westmead, Pinetown & New Germany Industrial Market Report, since 2013, a number of developments have been completed. However, in the last few quarters, the high demand for space has been met with limited existing stock, as a result, available stock comes at premium rentals.
Where demand couldn’t be met, space further along the N3 was sought, resulting in a growth corridor beyond the node’s borders. These industrial properties tend to be owner-occupied.
Demand for units measures between 500 square metres for midi units and 5,000 square metres for maxi units. Lease escalations are between 8-9% with lease terms of between 3-5 years.
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Author: Broll Property Group