Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of South Africa’s major business hubs with pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
According to Chris Renecle (MD of Renprop), Midrand’s appeal for business and industrial space is mainly due to its prime location between Johannesburg and Pretoria, as well as its easy access to major road networks.
Midrand’s commercial property is characterised by various usage zones, catering to a vast range of industries: “This, together with its location, makes it a prime, sought-after commercial node” says Chris. He goes on to say that the commercial property available in Midrand ranges from showrooms, factories (in the older areas) and warehousing, including mini and midi units, as well as large distribution centres to offices and retail space to offices including furnished premises, serviced singe office suits and large stand-alone buildings.
Tenants and purchasers of commercial space in Midrand span many different industries. In 2017, Renprop Commercial concluded deals for property space with food and beverage suppliers and manufacturers, power and electrical suppliers; IT companies; laboratories; water suppliers; security companies as well as training and education institutions, to name a few.
“The new Waterfall precinct has created interest in Midrand commercial property as there are a number of businesses that want to be situated close to it,” says Renecle. “There is also a definite increase in demand for warehouses in the 400m2 – 800m2 range, with very limited availability. Due to the number of new developments in Midrand, Samrand, Waterfall and surrounding areas, a few second-hand commercial buildings have come onto the market, either to let or for sale. However, these properties are also moving quickly.”
Large tracts of land held by developers are also due for project development this year.
Renecle reports that the mini warehouses, priced from around R8500/m2 to buy or between R55 and R65/m2 to rent, are currently the most sought after space in the Midrand area.
In general, he notes that warehouse space is available for purchase in Midrand anywhere between the R6 500/m2 and R10 000/m2 mark, while the area’s office space sells for between R12 000 and R18 000/m2. Rentals for warehouses are priced at between R50 and R80/m2, while office space rents out between R75 and R180/m2.
Renecle says that some of the additional benefits to businesses located in the Midrand zone are the wide range of property options to suit different budgets; it is close to major national suppliers; and is surrounded by rapidly expanding residential nodes covering various income groups, thereby bringing employees closer to their workplace. He also points out that Midrand businesses will also benefit from an improving public transport system including busses and the Gautrain.
In terms of growth and yield potential of Midrand property, Renecle says that the secure business parks have enjoyed best growth in rentals and sales: “While growth has been steady in the original suburbs of Midrand, at around 10% per annum, it’s in the newer developing areas such as Waterfall, where rentals achieved have been around 20%-30% higher. Yields vary between 9% and 10.5%.”
