The availability of zoned, serviced industrial land in Johannesburg is becoming increasingly difficult to secure. This is because competition for existing pockets that can be developed – particularly along major freeway and transport networks – continues to escalate.
The significant growth in demand for this industrial land is expected to continue for the foreseeable future – both in terms of development and demand for supply to territories north of the SA’s borders. Many South African companies are busy executing expansion plans into Africa, while our inland and sea ports continue to be a trusted a gateway to various African destinations.
The most prominent Greenfield development opportunities in Johannesburg fall into three distinct corridors. These are based on availability of land and congruence with ‘centre of gravity’ studies completed by various logistics and supply chain consultancies. The three corridors are:
The road corridor between Durban and Johannesburg continues to support the vast majority of freight supply to Gauteng. Transnet are busy investing significant capital upgrades to their current infrastructure and this will hopefully lead to a shift to rail solutions. This hopefully means that we’ll experience less pressure on our already congested road systems.
Industrial property developers should make provision for rail access on new projects. Rail will hopefully become a more economical mode of freight transportation. A reduction in transport costs will hopefully have an easing effect on commodity pricing and offer some respite to consumers.
Proposed industrial sites should offer the following fundamental features in order to secure success and viability:
Brownfield development in older established industrial nodes is becoming increasingly prevalent where municipal services and infrastructure are already in place.
Redevelopment costs may prove more economical, particularly when faced with the prospect of converting farmland into zoned, serviced industrial land within reasonable, economical time frames.
Contact Simon Black on 083 261 2861 to discuss upcoming opportunities.