Gauteng-based broker Nicola Neil-Boss of 9 Holdings said there has been a significant increase in rentals in 2021 as a result of rising building costs, especially the price of steel.
On new industrial developments, net rentals rose to about R75/m² from R68/m² , while on existing stock rentals they increased from R60/m² to R65/m² for prime industrial space.
"But Raymond Roos, MD at Asset Property Group, said rentals in older and more established industrial areas have not moved at all mainly due to the effects of the Covid-19 pandemic.
“New developments have seen slight rental growth of 6%-8% driven mainly by tenants looking for new, modern industrial buildings,” he said."