Unlike many areas where office property markets are battling high vacancies, certain offices in the inner city of Johannesburg are seeing huge demand from small and big occupiers.
When the Covid-19 pandemic hit in March 2020, many office users reduced their space or worked from home. This is changing, as many businesses and the government have returned to the office.
“From July 2022, we are seeing an increase in office occupiers taking up bigger premises, with leasing activity returning to pre-Covid levels,” Anton Jaffe, commercial director at Olitzki Property Holdings (OPH) told Business Day.
OPH is a specialist commercial property company that has been investing in Marshalltown in the inner city of Johannesburg for more than three decades. The company operates on the south side of the city and owns office and retail properties on Gandhi Square and the Fox Street and Main Street precincts.
Around these buildings, OPH has created public spaces to enhance the work and lifestyle experience. There is also thriving retail within these areas creating a hive of activity and enabling office workers to shop, bank and socialise.
Economic uncertainty
Jaffe said coupled with economic uncertainty, users were hesitant to commit to new or bigger space.
Requirements were up to 350m², but now tenants are signing deals of up to 3,000m².
Leases range from 3-5 years, offering tenants the flexibility to move within the portfolio. A number of smaller tenants starting out stay within the portfolio when they expand.
“All our big buildings have generators, and we are exploring alternative power sources and this attracts tenants who cannot always work from home. With increased load-shedding, we are seeing an increase in inquiries for space.”
As an example, OPH owns one of the oldest buildings in the inner city, the High Court Building built in 1904, to provide office space for lawyers who practised at the adjacent Magistrate’s Court in what is now Gandhi Square, formerly, Government Square. OPH restored the building in 2018 and offers 36 A-grade office suites.
Jaffe said the building is a small and medium enterprises hub and home to independent law firms, chartered accountants, financial services and other companies. Rentals start from R2,500 a month.
To cater for growing demand, and in line with its strategy to grow its portfolio, OPH recently acquired two vacant office buildings — the former Standard Bank headquarters before the bank moved into the Simmonds Street building. This historic building measuring about 7,000m² was built in 1908.
OPH also bought the office building which was home to the Minerals Council of SA from the Chamber of Mines.
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