Industrial space close to OR Tambo International Airport selling well

Industrial space close to OR Tambo International Airport notably in Johannesburg’s prime eastern nodes of Isando and Spartan has improved significantly over the past decade, with a large take up of existing properties across all areas.

Industrial space close to OR Tambo International Airport notably in Johannesburg’s prime eastern nodes of Isando and Spartan has improved significantly over the past decade, with a large take up of existing properties across all areas.

Over the past decade, an increasing demand for large warehousing space among distribution and logistics companies has resulted in the establishment of new industrial townships next to the main arterial and secondary highways between the north and eastern suburbs of Johannesburg.

A further trend, evident since the mid 1990s, is that the South African economy has gradually been moving from a predominantly manufacturing focussed industrial sector to one of moving manufactured goods and raw materials in, out of and through the African continent.

According to Jonathan Klimek, commercial broker at JHI Properties, building costs, as well as the increasing cost of proclaimed industrial land, have driven up asking rentals for new warehousing well above asking rentals found in the older industrial nodes, such as Isando and Spartan.

“In turn, an increase in the nominal vacancy rate for Isando and Spartan has kept rentals in these areas competitive in the marketplace, resulting in property owners making improvements to these industrial properties in order to retain tenants and increase returns," he said.

Conveniently located, Isando offers easy access to the R21, N12 and R24 and is ideally positioned next to OR Tambo International Airport, within easy reach of the airport cargo terminals via back routes - should one wish to avoid the highways.

Isando itself is home to the Rhodesfield Gautrain Station, part of the rapid rail network linking Johannesburg CBD, Sandton, Rosebank, Midrand, Centurion, Hatfield, Isando and OR Tambo International Airport. 

Says Klimek: “Isando is a growing commercial and industrial node, well recognised by international companies who seek the benefits of being situated close to OR Tambo International Airport, passenger rail and major road networks such as the R21, R24 and N12. Companies such as PepsiCo, MAN Truck & Bus (SA), GUD Filters, DSM Nutritional Products South Africa, Tiger Brand and Premier Foods are just a few of the blue chip organisations occupying large facilities in the Isando node.”

Hotels and conference facilities in the nearby vicinity and surrounds include the Inter Continental Hotel, Emperors Palace Hotel Casino Convention & Entertainment Resort, City Lodge, Airport Inn & Suites, Don Johannesburg International Airport and Garden Court.

“This makes Isando very convenient for international executives who may fly in for meetings, stay over and fly out the next day,” says Klimek. Another advantage is the area’s convenient proximity to residential suburbs such as Bedfordview, Linksview, Kempton Park and Glen Erasmia, while it’s an easy commute from Pretoria, Centurion and Johannesburg’s northern suburbs.

“It stands to reason that we are finding that increasingly, international and national companies seeking industrial and office accommodation - or a combination of these - are looking to be situated in close proximity not only to major highways and other transport routes such as the Gautrain Stations but also in the rapidly expanding commercial hub around OR Tambo International Airport,” says Klimek.