Many of the bigger property companies are taking advantage of the low cost of borrowing – due to the low interest rate – to refurbish their property portfolios.
Said Org Geldenhuys, MD of property development and management company, Abacus DIVISIONS: “This is a very clever move because, when the market does improve, they will in a better position to attract calibre tenants – and possibly charge higher rentals.”
Geldenhuys also said that another reason for opting for refurbishing – rather than building new offices – is because there is an oversupply of office space currently.
“This is because, during the boom times, developers got a bit carried away – and a bit greedy, perhaps – and built too many offices. Certainly those tenants that are refurbishing their current buildings – and are also making them more aesthetically pleasing will have the added advantage of offering an element of desirability to the marketplace. And being able to play the desirability card certainly proves a valuable edge.”