Every one praised the stalwart commercial property developers in Johannesburg city centre when they first persuaded investors to buy up the unoccupied building in the city centre, evicted the squatters and refurbished them into dazzling buildings with offices and snazzy but affordable apartments. Thanks to those innovative manoeuvres, Johannesburg CBD has experienced a remarkable revival. Instead of the ‘ghost town’ status of yesteryear, its developed sectors are supporting a new generation of vibrant city dwellers who have stable jobs in town.

Wherever there is a high demand for residential property, a positive impact on commercial property development follows. Investors will look for the lease and sale of office and retail space in the county’s most desirable nodes to put their buck down on. The moment JSE sees a majority investment toward their listed properties in retail and commercial property, it tells us that the economic climate is making industrial property an attractive option.

As a general rule, commercial properties deliver steady growth over time, as factories and warehouses play an essential role in the economy. The word is that there is a strong demand for top quality office space in strategic locations. It is always about location, location, location isn’t it? The fact is that people are prepared to pay a premium for just that.

The commercial sector has been developing into 2 basic categories:

  1. AAA prime grade
  2. A grade and below

The good news is that sectional title developments in the AAA class have shown consistently solid capital appreciation, proving that quality still sells. Business Centres are another option with growing popularity.

Smart investors will keep their eye on the ‘cosmetics’ too – there are ‘green’ buildings fitted with state-of-the-art, latest generation low-energy lighting installations, motion-sensing technology and VRV (variable refrigerant volume) systems.

Without a doubt, commercial property development is proving to be a forward moving, reliable investment, with less negatives, less risk and steady growth. What’s not to like?