Rosebank on the rise

Rosebank is reviving, with great retail and new office developments which are well-supported by the surrounding residential nodes and the Gautrain station.

Rosebank is fast becoming Johannesburg’s third largest high-rise business centre, after Sandton and the inner city, according to the research conducted by Broll, one of Africa’s leading commercial property services group.

“Rosebank is reviving, with great retail and new office developments which are well-supported by the surrounding residential nodes and the Gautrain station,” says Jane Parker, area specialist at Broll.

Leasing in the area has been busy in the early part of 2011 and demand for space is good. The highest demand during the first quarter of 2011 was for office space in the 250 to 600m² space bracket, with leases ranging between three and five years, starting at R85/m².

At the same time, the Rosebank Management District and Lower Management District have been working in conjunction with various government and private partners to reduce crime, clean up the area and increase service delivery.

“Rentals in Rosebank had been slowly but surely climbing until the fourth quarter of 2008, when there was a steep increase. Rentals are now at a level where we’ve recently leased out 4 000m² of office space in Oxford Corner at a gross rental of R170/m².” 

Parker ascribes these changes to all the new developments making additional office and residential space available, as well as to the boost the Gautrain gave Rosebank’s popularity as a business node.

“The June 2011 opening of the Gautrain Station in Oxford Street has caused a flurry of activity in the property market, with new builds and revamps of older office buildings,” Parker explains. 

“Standard Bank has a 60 000m² office development underway for its own occupation, the iconic 9 000m² Oxford Corner development is complete, the second phase of the Zone is complete, and the Rosebank Mall Shopping Centre is scheduled for a major upgrade and extension.

Nedbank Gardens and the fire station site on Bath Avenue are just awaiting a major tenant to kick-start their redevelopment. Plus 160 Jan Smuts Avenue - at the corner of Tyrwhitt Avenue in Lower Rosebank - is undergoing a massive upgrade.”

The outlook for the next 12 months is that demand for space will continue to increase. However, since available space is also increasing, Broll’s research indicates that actual sales will remain level.