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The East Rand has experienced a notable increase in the uptake of industrial property, specifically logistics warehouses recently. This despite a challenging economy, Covid, and the recent unrest/looting throughout the country.

The demand for warehousing has largely been driven by an increase in appetite for online shopping as opposed to pre Covid times. Consumer attitudes have changed and customers are less reluctant after almost being forced into ordering online from their favorite retailers during lockdown. Online sales in South Africa in general have almost doubled from 2018 to 2020 with an increase of nearly 66% in online shopping. The percentage of online sales versus brick and mortar sales is expected to have risen from 1,4% in 2018 to nearly 4% by the end of this year.

Prime industrial nodes like the R21 corridor which includes areas like Pomona, Glen Marais and Riverfields have seen significant growth this year, estates like Plumbago Business Park are fully let with new logistics facilities busy being developed to accommodate the demand in the area. Another prime estate is Eastport Logistics Park which has also attracted remarkable interest and commitment lately. Tenants including Takealot have just taken 20 000m², On The Dot Contract Logistics have let just under 15 000m² and Pick ‘n Pay have committed to an 80 000m² facility with development underway. This all within the last few months. Equites Park and Terminal Park in the Riverfields/Plumbago node are also offering attractive opportunities catering to small as well as large users. The recently completed 25 000m² warehouse for Sandvik was the first development in the park.

 

Plumbago Business Park

New speculative logistics warehouse development – Plumbago Business Park

 

The reason for the establishment and already success of these parks can only be attributed to the demand for quality logistics space within the area and the need for access, and proximity to OR Tambo. These users also require more efficient specs that are not always easy to find with older facilities, these include improved height, quality flooring, deep yard areas for articulated vehicles, availability of loading doors, and rooftop sprinklers systems fed by on site pumps and tanks.

Other surrounding industrial areas on the East Rand have also benefitted from this demand. Areas including Pomona itself, Jet Park, Isando, Meadowdale as far as Gosforth Park even. These are just some examples of where larger warehouse space has been taken up over the last few months:

Wingfield Park, Jet Park – 19 000m²

Speculative Park, Jet Park – 7 000m²

Speculative Park, Jet Park – 3 500m²

Khulani Park, Jet Park – 6 000m²

Maple Road, Pomona – 7 500m²

Lords View, Chloorkop – 11 000m²

Eastport Logistics Park – 20 000m²

Eastport Logistics Park 14 000m²

Isando Ext. 3 – 8 500m²

Wilbart, Bedfordview – 22 000m²

Aeroport, Spartan – 24 000m²

 

Eastport Logistics Spec Warehouse 3

Eastport Logistics Spec Warehouse

 

Regardless of this increased demand and uptake of space there are still some exciting opportunities vailable or becoming available in the next few months. New developments can be customised to suit your needs exactly, contact us today and we can source the right opportunity to suit your business’s needs. We specialise specifically in industrial properties on the East Rand as well as the Linbro Park/Longmeadow areas.

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