Another industrial development for Somerset West

Another secure industrial park, with 12 units ranging from 225 to 750m², has been launched in Somerset West, on land bought from Heartland Properties, which is responsible for the ongoing redevelopment of AECI land between Somerset West and Strand.

Somerset West offers excellent capital growth on industrial developments, says Wendy Viola, formerly of Heartland Properties and now heading up Viola Property Services which is marketing units in the area.  "The market is following up on the uptake experienced in more established industrial nodes and there is a high demand for small to medium units in Somerset West."

Viola says that industrial land in Somerset West is fetching up to R600/m², with industrial property fetching rentals up to R35/m² as compared with land at Montague Gardens, a premier Cape Town industrial node, at R750/m² and rentals at R40/m².

"The industrial property market continues to be influenced by low interest rates, an upsurge in manufacturing and the increased uptake of existing stock," she says.

Increased land priced due to a shortage of suitable, zoned stock and building costs have led to an increase in rentals and a vacancy reduction.  Rezoning delays and creating appropriately zoned stock because of pressure on municipal resources is also likely to impact on the market well into the future."

Source: Cape Business News - www.cbn.co.za

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