West Rand Commercial Property

General and Location 
The West Rand is a large area – my area stretches from Krugersdorp to RandParkRidge and it encompasses HoneyDew,  Muldersdrift, Ruimsig, Roodepoort CBD, Florida CBD, Constantia Kloof, Industria, Lazer Park, Kya Sands, Northlands Business Park. Beyers Naude, Ontdekkers Road, Goldman Street, Van Wyk Street, Golf Club Terrace, Main Reef Road – are all heavily trafficked routes on the West Rand.

 

 

Flora Clinic is a hospital / medical facility in Constantia Kloof area, there are many hospitality entities in the HoneyDew / Muldersdrift area (lodges etc). Eagle Canyon is the estate of note on the West Rand.  

Accessibility by road into most of the West Rand is very good in that most of the different areas have various in and out routes which allow for lack of major congestion. 

Lanseria, Muldersdrift area development will be huge however it will only really start taking off once the Tswane and Jhb councils get the zoning and the services into the areas completed. 

The West Rand is mainly residential with office, retail and industrial nodes present throughout. Eagle Canyon is the residential hub of note. 

Office Nodes 

Constantia Kloof – very popular office node which is limited in expansion possibility due to surrounding residential areas. The Constantia Kloof office to let market is around 90% taken up and at a given point in time there is around 5000 sqm available due to tenant movement. Average office rental in the area is at around R110 per sqm. 

Florida – there are many converted houses in the Florida area especially along Ontdekkers Road where most of the houses have business rights. Office rentals along Ontdekkers Road tend to vary between R60 and R80 per sqm dependant on where on Ontdekkers Road the property is. Goldman Street in Florida town itself is a downmarket retail and office area where retail fetches between R65 and R85 per sqm and office space around R60 per sqm. 

Roodepoort – Roodepoort CBD is a downmarket retail, office and light Industrial area where rentals are on the lower end of the scale. There is not much demand as the security in the area is high risk. 

Krugersdorp – the Krugersdorp CBD is comprised of downmarket retail, office and light industrial where rentals are on the lower end of the scale. There is not much demand due to security risk. 

Industrial Nodes

Kya Sands is a light industrial node where crime has recently become a factor influencing space take up. A lot of vacant factory / warehouse space has recently come on to the market – both for sale and to let. The going rental rate per sqm is R40 to R45 per sqm.

Northlands Business Park is a light industrial node in close proximity to Kya Sands which is in demand in that it is mainly gated with access control causing the crime problem in Kya Sands not to spill over into Northlands. Rentals vector between R45 and R55 per sqm for industrial space here. Northlands is around 85% let at any given point in time. 

Lazer Park is a small light industrial area which is popular and at any given point in time is around 85% taken up regarding lettable space. Rentals are at around the R45 per sqm level. 

Industria is a heavy industrial region in the Krugersdorp area and caters to large heavy industrial usage. Rentals vector between R25 and R30 per sqm. At any given point in time there is around a 10% vacant factor relating to space in that it is one of the only heavy industrial hubs in the area.

Main Reef Road – there are various industrial entities all along main reef road however demand is very low given security considerations in that crime is high. 

Retail Nodes

There are many shopping centres and nodes throughout the West Rand the main ones being Clearwater Mall and WestGate. These are usually 100% let at any given point in time. There are many small centres servicing residential communities anchored by one or other of the Supermarket chains. Rentals vary centre to centre dependent on the anchors and accessibility of the centres. 

There is retail in Florida CBD, Krugersdorp CBD, Roodepoort CBD however it is down market and fetches rentals of around R65 per sqm due to security issues in those areas. 

In the Clearwater Mall area on Hendrik Potgieter road and Christiaan De Wet there is a large retail node consisting of medium sized centres such as retail crossing. These are usually 100% let. 

Growth areas

The only real major development nodes on the West Rand at present are the Muldersdrift area where a great deal of land is being taken up by developers for residential, commercial and Industrial development and the Lanseria airport area and surrounds where massive development is on the cards. Both Muldersdrift and Lanseria developments are being held up due to zoning and services which are being put in place by council and which will be in place in around 12 months after which I perceive massive development will occur. 

Trends 

The Muldersdrift and Lanseria development, when it finally goes ahead will bring major investor and developer interest to the entire West Rand. I perceive that Ruimsig and certain regions of Krugersdorp will receive a very large growth boost.    

Commercial Areas

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