Rosebank and its office rentals may not survive the Sandton of time
The leafy node will soon run out of space for big banks, law firms and other professional service providers
Rosebank is charging the highest office rentals in the country, but that doesn’t make it the most prestigious commercial node, and it’s unlikely to sustain rental per square metre rates that breach R200 three to five years from now.
According to research by the SA Property Owners Association, premium-grade offices are being rented on average at a gross rental of R198/m². Offices that are considered to be A-grade and are a few years old are collecting average rentals of R180/m². Some offices that are more than 10 years old or B-grade have achieved rentals of R250/m².
This is while Sandton, a much larger and more developed node, is attracting rentals of about R180/m² for P-grade offices, but R138/m² for A-grade offices and only R125/m² for B-grade offices...