Gauteng’s East Rand was a hot spot for industrial property leasing in 2017, says Growthpoint Properties, which concluded 70 deals in the area – 40 new and 30 renewals – during the year.

The 70 deals covered over 146 499 m2 of space and were valued at about R260-million.

“The area is particularly popular with large logistics and warehousing businesses because of its excellent road access. Growthpoint has good-quality stock in the area, including properties with development and redevelopment potential, which provide the opportunity for tenant-driven space solutions,” Growthpoint industrial division director Engelbert Binedell states.

He notes that the company is experiencing normal levels of churn on smaller mini units in the 250 m2 to 750 m2 range and good demand for midsized units of up to 2 000 m2.

The Growthpoint Industrial Estate, in Meadowdale, Germiston, has now been developed into an 80 000 m2 park in total, with only two sites of 2 000 m2 and 4 000 m2 still available for bespoke development to client requirements.

Latest developments in the East Rand area include a warehouse for Pick n Pay to service online shoppers, which Growthpoint undertook in joint venture with industrial and commercial property investment company Improvon.

The warehouse, which also includes a small office component, spans 7 500 m2, with an option to add further space of up to 3 000 m2.

Growthpoint- has also completed a specialised development that will see transport service provider Fast & Furious Distribution move into a new 10 200 m2 warehouse at Growthpoint Industrial Estate as its business grows.

In January, Fast & Furious relocated from its current smaller space to its new larger building, which is designed to support the logistics company with features like cross-docking.

Elevator and escalator manufacturer Otis also recently took up 2 370 m2 in the Growthpoint Industrial Estate, with its premises including space for warehousing, operations, sales and maintenance.

Elsewhere in Meadowdale, Growthpoint has renewed its lease with Namibia Logistics (Namlog) for a 7 700 m2 warehouse and, at the same time, the supply chain group has also signed up for a 1 000 m2 extension.

This, Growthpoint explains, will right-size the facility’s ratio of warehouses to offices.

Growthpoint signed various other deals in the Meadowdale area during the year, totalling over 3 600 m2.

In November 2017, Growthpoint acquired a logistics facility there for R132-million at a 9.25% yield. The freight facility spans 16 654 m2 and is occupied by long-term client Heneways Freight Services, with an extended lease of just over six years remaining.

Also in Germiston, Growthpoint has renewed the lease for Goodyear South Africa’s 17 700 m2 facility in Greenhills, which includes a specialised store.

The warehouse parking area was upgraded and new polycarbonate sheets were installed to maximise natural light, making it more efficient. The property provides excellent accessibility to the airport.

At Isando Industrial Park, in Kempton Park, Growthpoint started 2017 with a large vacancy; however, the available space, ranging from 150 m2 to 400 m2, has now been fully let.

In Boksburg, Growthpoint signed new client Lulatec for over 4 100 m2 of space for its steel fabrication business in Jet Park.

Growthpoint also secured some key lease renewals at properties across the East Rand in 2017.

In Sunnyrock Extension, Germiston, the company renewed over 3 050 m2 of space for Kawena Distributors, while, in Boksburg East, it renewed 45 181 m2 for DCD Group.

Growthpoint has also renewed a lease with Tiger Brands for over 8 120 m2 of storage and warehousing space in Industria.

“The East Rand, especially its established industrial areas with good access to major roads, has proven to be of specific interest to businesses in the current market, and we expect this to remain the case in 2018,” concluded Binedell.