Office rentals during the third quarter of 2005 grew by 12% in the Johannesburg, Cape Town, Durban and Pretoria CBDs and 5% in the decentralised nodes (A-grade space in suburban areas), the latest Rode Report revealed.
The report also noted that building cost inflation (as measured by the BER Building Cost Index) has grown by a “frightening” 17,1% during the reporting quarter. Building input costs (as measured by the Haylett Index) have grown by 6,7%.
Erwin Rode, property economist and author of the report, says the implication is that real (inflation adjusted) rentals have continued to decline.
The growth in the take up of office space has been ascribed to strong economic growth because businesses are expanding.
