‘The phone is ringing’: SA’s office sector is the worst off, says Burstone

(Shannon Fagan/Getty Images)

The worst-performing situation appears to be the SA office market, where market rents are stabilizing and companies are increasingly encouraging employees to return to meeting and conference rooms, according to JSE-listed Burstone Group.

The group, formerly Investec Property Fund, said on Wednesday that while there continued to be significant negative rent developments (where a lower rent increase was agreed as leases were due to renew), headline market rents were no longer declining.

In contrast, specific hubs such as Rosebank and Bryanston in Johannesburg and the V&A Waterfront and CBD in Cape Town have seen much greater growth, with very little space available for occupiers looking for offices in these sought-after areas.