Covid-19 and its unprecedented impact on businesses in South Africa has had a significant knock-on effect on the commercial property market. Understanding the implications – and how to accommodate the resulting trends – is essential for investors looking to safeguard the performance of their commercial portfolios, says Craig Mott, Cape Town regional sales manager for the Rawson Property Group.“Office space has probably seen the most obvious shifts post-lockdown,” says Mott. “A lot of businesses have
East Africa has long been a challenging region for property developers to operate in, and not as buoyant as other markets. With Covid-19 triggering a recessionary environment, the property industry, always deeply affected by changes in the economy, is identifying areas of resilience and pockets of opportunity. As investors and developers step back, regroup and respond in innovative ways, the need for insight from local partners is more critical than ever.Perceptions, rather than reality, are
Property News: Sale and leaseback
What is a sale and leaseback? In a sale and leaseback transaction, an investor purchases a property currently owned and occupied by the business owner (who also owns the property). Simultaneous with the sale, a lease is drawn up which keeps the business owner in the property. This way, business can continue as usual. Thom cautions businesses considering this option to think long-term. “The initial lease period associated with these transactions are between 10 to
Property News: While repo rate breathes life into residential property, commercial sector remains subdued
The sounds emanating from the property market in recent months seem to point to two almost totally different worlds. On the one hand, there seems to be some excitement in the residential market, with a significant number of credit-dependent home buyers taking advantage of very low interest rates, while in the commercial property segment the activity seems far more “suppressed”.Of course the various data releases run a bit behind the reality, so much of what
Creativity on the march across the retail landscape
Creativity is on the march across the retail landscape as sector players get to grips with shifting consumer values and influences in the wake of the Covid-19 pandemic.Conditions today may be thought of as a kintsugi economy, says Belinda Clur, managing director of Clur International, which produces the Clur Report on SA Retail Property. This industry barometer and asset management support system tracks performance and trends across 3.3 million square metres of retail space for