As a guest contributor to <a href="https://www.tpn.co.za" target="_blank" rel="noopener noreferrer">TPN</a>'s third quarter Commercial Rental Monitor report, FNB's property sector strategist John Loos has seen a mildly improved tenant payment performance in the commercial sector during the third quarter. This follows a sharp second quarter drop as a result of the national lockdown in the wake of the Covid-19 pandemic.

"Although we have seen some modest improvement in tenant payment performance in the 3rd quarter, the level of performance remains weak," says Loos. "And tenant financial performance would seem still too weak to drive the demand growth for space necessary to end a rising vacancy rate trend just yet."

Other insights from the third quarter of 2020 include:

• Commercial tenant rental payment performance: This recovered to 56.19% of commercial tenants being in good standing with landlords in Q3, which was up from from 50.36% in Q2. This still, however, remains well below the pre-lockdown level of 77.85% recorded in the 1st quarter of this year.

• Preliminary monthly tenant payment performance: The poorly performing Retail Property Sector’s tenant population showed a continued recovery, but the Industrial tenant population weakened slightly over the same period.

• The Retail Property Sector’s tenant population has been the most severely impacted of the major 3 property sectors through lockdown, while the smaller Storage Sector is in significantly better shape than all of the major three property sectors.

• The Western Cape maintained its superior tenant performance relative to Gauteng and KZN, with Gauteng continuing to show the weakest performance of the three major provinces.

<a href="https://data.blackpepperonline.co.za/wp-content/uploads/2020/12/Commercial-Rental-Monitor-2020-Q3.pdf" target="_blank" rel="noopener noreferrer">You can read the full report here</a>.

Tenant payment performance for Q3

Given the extraordinary year we've been through, what is the future of the commercial office come 2021, and beyond?

If you're in the commercial property industry, knowing the answer to this could mean the difference between barely surviving as opposed to thriving in the years to come.

While we don't have a crystal ball, there has been research done into trends we're likely to see when it comes to commercial office space going forward. CBRE Research recently conducted a survey of 126 senior-level global real estate executives to determine how the COVID-19 pandemic will change the location, design and use of office space.

Some of their key findings were:

- Remote working is trending: More than half the respondents said they expect to work remotely outside of the office, either part time or full time.

- But physical offices will still be key: 41% of respondents said the importance of the physical office will decrease only slightly, while 38% said it will remain as important, if not more.

- People are making cyclical portfolio adjustments: The majority of respondents are pursuing lease renewals, while more than 75% have expansion plans on hold or canceled.

- Long-term strategies are under consideration: 70% are confident in setting long-term real estate strategies even amid the pandemic, and 73% of respondents expect flexible office space will play some role in future strategy.

- The workplace is quickly changing: Most respondents indicated workplace transformation is still trending away from dedicated private space and toward shared collaborative space.

The report concludes that from their research, they predict the function of the office will shift away from traditional work processes and oversight to more collaborative, educational and social needs of a growing hybrid workforce. It's clear then that being flexible and adaptable are two of the key attributes needed to succeed in the commercial office sector going forward.

<a rel="noreferrer noopener" aria-label="You can read the full report here (opens in a new tab)" href="https://data.blackpepperonline.co.za/wp-content/uploads/2020/12/Future_of_the_Office_v2.pdf" target="_blank">You can read the full report here</a>.

The future of the office

Q2 2020 took place in the middle of South Africa's national lockdown as a response to the Covid-19 pandemic. As a result, retail trading density (in other words, sales per square metre) continued to be severely constrained, as with Q1.

As Q2 began in April, trading halted abruptly in South Africa, with the exception of only essential goods and services. Over the month, trading density declined by 64.5% compared with April 2019.

Although more retail categories were allowed to trade in May and June, with trading density recovering to -31% and -27% in those months, overall retail trading density still remained much lower than over the same period in 2019.

Throughout the whole of the second quarter, trading density recorded a negative growth of -26.2%, while foot count dropped by 37.1%. but spend per head increased by 1.4%. There is a perception that because consumers were limiting their shopping trips over this period, they were spending more on each visit. These figures show that this was not the case, i.e. additional spend per visit did not make up for fewer visits.

Over the quarter, the average vacancy rate of SAPOA's MSCI Retail Trading Density Index was 5.6% in June 2020, which was up slightly from Q1.

Regional malls saw the lowest vacancy rate, but this came at a cost: gross rental only increased by 3.7% year on year in these malls, suggesting a decline in renewals and re-letting of tenants. In line with this, Super Regional malls saw an average of two stores become vacant since lockdown commenced.

Besides the negative effect of the pandemic on retail vacancy rates, Edgars also closed several of its underperforming stores over Q2, which further impacted the declining figures.

In summary, the national lockdown resulted in an almost unprecedented drop in performance of the retail sector over the second quarter, despite the allowance for essential goods to be traded.

<a href="https://www.sapoa.org.za/media/5835/retail-trends-report-sept-2020.pdf" target="_blank" rel="noopener noreferrer">Read the full SAPOA Retail Trends Report for Q2 here</a>.

SAPOA Q2 2020 Retail Trends Report

The RICS Global Commercial Property Monitor report is out for Q2 of 2020, outlining trends in the global commercial property markets from April through June of this year. Feedback was received via questionnaires filled out from 2083 companies around the world during June and July of this year.

Unsurprisingly, the global commercial property outlook during the second quarter of this year still appeared gloomy, mirroring the ongoing negative impact of Covid-19 on the global economy, and the knock-on effect of the real estate sector. The most notable trends detailed in the report are outlined below.

A downbeat economic outlook is affecting the global real estate sector

The IMF’s latest attempt at a forecast for the global economy was that it would grow by 5.4% in 2021, following a contraction of 4.9% this year. But this sharp turnaround is being driven largely by emerging and developing markets in Asia. For advanced economies, such as the US and Europe, the forecast is more downcast, with only just over half of this years loss of output forecast to be recaptured in 2021.

This is congruent with the headline RICS global sentiment indicator (capturing feedback regarding both the occupier and investor markets) dropping from -28 to -37 in Q2, according to survey respondents.

An increased number of respondents see the commercial property market as being fairly valued

Around two thirds of respondents see the commercial property market as currently in a downturn phase, while 9% perceive the market to be in the bottom phase. However, over 40% feel that the real estate sector is being fairly valued currently, in part due to the significant adjustments that have been made to monetary policies in the wake of the pandemic.

It's interesting to note that respondents have remained fairly consistent in their views between Q2 and the previous Q1. Namely, the majority of respondents put the risk level for the commercial property sector at 4 within a range of 1 to 6.

Expectations remain modest

At a global level, a significant proportion of respondents see rents and capital values declining over the next twelve months. Looking at specific regions, there are slightly more positive projections for APAC, slightly more downbeat numbers for the Americas and roughly similar expectations for Europe for this period.

Sector performances are becoming more divergent.

The report found that most respondents still agree that the worsening trend in the retail sector as a result of ecommerce has been exacerbated by the lockdown imposed in a large number of countries in response to the spread of the coronavirus. Demand for retail space at a global level fell sharply in Q2. There was also a sharp reduction in demand for office space, and a decline in the
industrials/logistics sector, albeit much more modest.

Respondents also predict that over the next 12 months, the retail sector will continue to be negatively affected, due to a combination of cyclical weakness and structural change. In contrast, the industrials/logistics outlook is much more positive globally, but individual country predictions vary significantly. The US and Germany specifically are likely to be some of the stronger performers.

Globally, over 50% of respondents indicated that the global real estate footprint would be up by 10% over the next two years, while one third suggested it would be more. Only 14% judged there would be no change. Additionally, respondents also envisaged a shift in office space from urban to suburban locations due to the fallout from Covid. The global results show 10% viewing this as a strong trend, 50% saying it will happen to some extent and 40% disagreeing.

A higher demand for health and wellbeing

The majority of respondents agreed that another effect of the Covid pandemic will be a greater emphasis placed on health and wellbeing in the workplace. Globally, only around one-third of respondents felt that tenants would be able to shoulder the cost of paying for the required enhancements.

<a href="https://www.rics.org/globalassets/rics-website/media/market-surveys/gcpm/q2-2020-rics-global-commercial-property-monitor.pdf" target="_blank" rel="noopener noreferrer">Read the full RICS Commercial Property Monitor report for Q2 2020 here.</a>

RICS Global Property Monitor for Q2, 2020

If we've learned one thing in 2020, it's that we're more adaptable than we think - and that includes how we work. For many businesses, there was no choice during lockdown other than to adapt to the concept of working remotely.

Now that we're coming out of lockdown and businesses can largely return to the workplace, it turns out that there were many advantages businesses discovered about remote working (cost savings, time savings and convenience being three of them) - so they're not as happy to go back to how things were before.

Enter the concept of the virtual office, which can be thought of more as a service offering than a physical space (although many virtual office offerings may be a hybrid of the two).

In its simplest form, a virtual office is a suite of services that provide things like a physical business address, a receptionist service, and access to a dedicated phone line with a business number.

Other virtual office services could also include physical meeting rooms, day offices or collaboration spaces for businesses to have ad-hoc access to physical spaces when they need it. Essentially, it's using a combination of technology and spaces to help business work more efficiently.

Perhaps one of the biggest advantages of a virtual offices is for a customer to add or take away services on demand - whether they just need a postal address and a VoIP phone system they can access from their smartphone, right through to a receptionist who passes on messages to you, or even physical meeting rooms or hot desks. This means that a business gets the benefits of a traditional office, with flexibility and lower costs - making them perfect for these changing times. They also allow businesses to present a professional image to customers while behind the scenes, they are actually operating remotely and most, if not all, of their employees are at home.

With the demand for virtual offices increasing, this could be an opportunity for landlords to make better use of their existing office spaces that may be less in demand by tenants who don't need as much space. Rather, landlords could repurpose their space to be more flexible and accommodate a larger number of tenants on an ad-hoc basis. Things like desks, meeting rooms and even collaborative spaces for in-person workshops could be reserved via a virtual booking system so that there are no conflicts, but so that the space gets used more often.

2020 is a time to adapt or die - especially for commercial office landlords who may be struggling to fill their office square meterage that was full before the pandemic hit. By thinking differently, such as creating a virtual office where members take advantage of the technological offerings to work remotely but "drop in" to use physical spaces where needed, landlords can stabilise or even increase their revenues, where previously larger single-use tenants may have been struggling to afford their rent bill.

The attraction of the virtual office in 2020

In the August 2020 issue of Asset Magazine, real estate company CBRE Excellerate Africa commented on the state of Southern Africa's commercial property industry in the post-Covid era, <a href="https://www.cbreexcellerate.com/joomla/images/pdfs/Covid-19_Assessing_the_impact_of_the_SA_Real_Estate_Sector_-__May_2020_final.pdf" target="_blank" rel="noopener noreferrer">as encapsulated in a report the company released in May</a>. Jonathan Turner, CBRE's managing director of advisory and transaction services, and Ndibu Motaung, divisional manager of operations, had several key trends to share:
1. South Africa's economic recovery looks set to be U-shaped as opposed to V-shaped. in other words, the country needs more time to recover due to its numerous other pre-existing economic problems, including rising unemployment, money being spend on relief packages, and a shrinking tax base.
2. Covid-19 has accelerated the growth of certain behaviours and market segments. E-commerce, for example, has boomed during lockdown, and has lead to higher demand for warehousing and distribution centres, as companies try to be more efficient in terms of getting goods to market amid increased demand.
3. No one was prepared for the impact of Covid-19 on the commercial office market. Commercial property investors are now having to review their strategy as the demand for offices drops as companies realise they need less space than they did before. This has resulted in a huge oversupply of office space, which will need to be addressed by repurposing the space, or transacting differently with clients. In any event, landlords will need to be more flexible in servicing their clients' more fluid space requirements.
4. In the case of listed properties, landlords are being pressured by lenders, tenants and shareholders. The tenant-landlord relationships needs to become a partnership, for example by recognising a tenant's changing space needs and shrinking budget due to overall economic restraints. And, landlords need to be even more sure that their buildings are offering full value to tenants, for example by being environmentally friendly and space efficient.&nbsp;
5. Valuation of property assets will need to take a longer term view. While there may be a significant reduction in the value of these assets in the short term, it's important for investors to also look at residual value and longer-term income streams. Despite all this though, a heightened risk premium (which is now the case post Covid-19) will almost certainly lead to lower valuations across the board.
This article was first printed in <a href="https://assetmag.co.za/issue84/index.html?page=2" target="_blank" rel="noopener noreferrer">Issue 84 of Asset Magazine from August 2020</a>.&nbsp;

5 commercial property trends post Covid-19

If you're renting commercial office space, you will at some point need to decide whether or not to renew your lease with your landlord - or relocate somewhere new.

Especially in recent months, many tenants are realising that more of their staff can work from home than they previously thought, which potentially means that their space needs are less.

This may mean downscaling to smaller office premises to cater for fewer permanent, office-faring employees. Still, the costs of moving offices can be surprisingly steep, so if you run the numbers, it may actually be worth staying at your current premises and perhaps coming to an agreement with your landlord. Here are five things you should consider when making this decision:

1. Run your numbers. Although it may seem obvious, it's surprising how few tenants actually look in detail at the numbers that they are paying for their current lease versus what it would cost to move. As a starting point, create a financial model that compares the costs of moving versus staying. When doing this, look at things like current fair market rental rates per square metre, tenant improvements you may need in future, your office space needs in terms of head counts over the next five years, and how much of a credit risk you are.

2. It's not just about cost. Now that you've done your sums, realise that moving or staying isn't just about money. You should also factor in things like the location of your new versus current premises, the costs to your business will be in terms of disruption while you move, and what the relationship with your new landlord is likely to be like in terms of their flexibility and fitting in with your desired business culture. These should all form part of your decision making process.

3. Shop around. Even if you intend to stay where you are and renew your current lease, it's a good idea to find out what landlords are charging in the wider market, what demand is like, and how things may have changed since you negotiated your existing lease. A reputable property broker offering tenant advisory services can help you put a foot into the market without needing to commit. Whoever you use, make sure that they're experienced with the areas and types of offices you are considering.

4. Are you on a strong footing when it comes to negotiating with your landlord? Doing a financial modelling process may reveal that it's more cost effective to stay in your current premises. If this is the case, how much sway do you have when it comes to negotiating new lease terms? Do your homework in terms of what you should be paying, what other tenants are paying, and what else is available in the market. Consider using a property broker for their tenant advisory services to help you do this. Being clear about what's fair to ask for in your negotiation will put you on a stronger footing when it comes to a lease renewal that suits your business going forward.

5. How important is flexibility to you? <a href="https://www.youtube.com/watch?v=j6Y6f-FJ5Yw" target="_blank" rel="noopener noreferrer">As outlined in our latest video</a>, in these uncertain times, it may be more important than ever for you to negotiate shorter lease terms, be able to sub-lease, or have first right of refusal. Whether you're staying or moving, make sure that you have the sufficient levels of flexibility built into your lease to make you comfortable with signing on the dotted line.

Moving premises or staying where you are both have their advantages or disadvantages. Which one of these weigh in your favour depends on where you are as a business right now, where it's going, and what the circumstances are in the market in general. By bearing these five points in mind, you can make a sound decision that helps solidify your business presence rather than endanger its cashflow.

Should you renew your lease?

As a <a href="https://www.economist.com/briefing/2020/04/11/the-changes-covid-19-is-forcing-on-to-business" target="_blank" rel="noopener noreferrer">recent Economist article</a> noted, the Covid-19 pandemic looks set to change business forever, for better or for worse. One of these changes will involve businesses being forced into embracing digital faster than they would have chosen to, if they'd chosen to do it at all before now.

So what does "embracing digital" look like? Is it simply about switching to Microsoft Teams or Zoom calls? Is it about implementing infrastructure so that clients, employees and other stakeholders can interact remotely? Or is it about changing an entire mindset towards the possibility that the way we do business is changing for months or even years to come?

The answer is probably all of the above. Overall, embracing a digital future isn't just about installing clever tech - it's about seeing how your business can best service its market in a post-Covid world.

As Harvard Business Review notes, <a href="https://hbr.org/2020/05/digital-transformation-is-about-talent-not-technology" target="_blank" rel="noopener noreferrer">digital transformation is not about technology - it's about people</a>. The authors' suggestions for businesses wanting to be fully digitally transformed include putting people first (i.e. reskilling and upskilling employees) and focusing on soft skills. As the authors note, "The best way to make your organisation more data-centric and digital is to selectively invest in those who are most adaptable, curious, and flexible in the first place."

Together with this, businesses succeeding in this area are driving change from the top down, through leaders who are fully sold on the idea, and see it is a priority in all their strategic decisions.

Then there's the notion of acting on data insights. While your company may have the latest tech tools available, there's little point in them unless you can take insights from the data they're gathering and then act on them to make your business more competitive.

Bringing this back to the context of the Covid-19 pandemic, in his article <a href="https://medium.com/@levonrivers/innovation-in-the-pandemic-age-i-v-264f16a6e08b" target="_blank" rel="noopener noreferrer">Innovation for the Pandemic Age</a>, Levon Rivers interviews several key South African players in different industries, and how they're seeing businesses and entire sectors shift to survive in these unprecedented times. A key theme seems to be first understanding exactly how human behaviour and priorities are shifting, and then catering to those needs. Examples include a car company digitising the sales funnel, a drink and brewery company pivoting to produce distilled alcohol in order to manufacture hand sanitiser, and an estate agency embracing virtual viewings. For commercial property, this could also be applied - as well as realising that people's needs are changing when it comes to offices: whether it's a different floor plan allowing for social distancing to more digital platforms so that those working remotely can still operate effectively in a team where core members are in the office.

Overall, going digital and embracing the post-Covid world for your business isn't about having the fanciest, shiniest tech platforms. Rather, it's about thinking about how your business can continue to be agile and functional in a world where physical proximity may look completely different. Whether that's a temporary shift or a permanent one, the key is to be adaptable enough to be able to thrive in any of these scenarios. Technology then simply becomes a tool to help you achieve this vision.

Business in a post-Covid world: it's about talent, not technology

As of this Friday, South Africa moves into phase 4 of the phased approach towards easing lockdown and restarting the economy. If you're a business returning to work, you may be feeling some unease about getting back out into the world (and the workplace) amid the Covid-19 pandemic. Here are 5 things you should think about when it comes to you and your employees returning to work:

Ensure the safety and wellbeing of your workers

Your biggest priority with the return to work is to make sure that your employees are as protected as possible from contracting the coronavirus. This means implementing stringent hygiene protocols at your office, including issuing personal protective equipment (such as masks), installing hand sanitiser stations, implementing social distancing in terms of desk layout, and educating your employees about other personal safety measures such as frequent and thorough hand washing. There should also be protocols in place for health screening and reporting any sick employees to your provincial health authority. The health plan also should include trying to ensure that people can get to and from work safely, which could include, for example, avoiding public transport by implementing a shared lift scheme in a private vehicle.

Clean and disinfect your workplace

As part of your commitment to ensuring the safety of your employees, implement a deep clean and disinfecting of your workplace. First decide which areas should be cleaned, and then apply all surfaces with government-approved disinfectants. Think about common areas and surfaces, bathrooms, shared office equipment, kitchen areas and meeting rooms.

Talk to your landlord

As you return to work, you need to face any potential financial crises when it comes to being able to afford your rent now, as well as on an ongoing basis. Above all, keep communication open with your landlord about possible rental relief in the foreseeable future, as well as what your and their responsibilities are about the potential spread of infection. We are seeing across the board that landlords are being flexible in dealing with the current challenges given their own financial commitments.

Emphasise communication

This is an anxious time for everybody, as businesses and employees try and adjust to a "new normal" in a post-coronavirus world. The best way to navigate this is to make sure your lines of communication are open - with your employees, clients, and stakeholders (including your landlord). It's important to think about how and what you will communicate before your employees return to work, so that your messaging is coherent and everyone feels reassured. As part of this, decide on who will communicate what, and who will be responsible for addressing questions and issues with different individuals, whether they're clients, employees, or your landlord.

Assign responsibilities

With the post-coronavirus world, a host of new roles and responsibilities will open up which you will need to designate to certain employees. These include things like "health team captains" who will ensure that hygiene and safety protocols are implemented, PPE training experts who can teach employees how to use safety equipment, a quarantine marshall who will respond to an employee who reports feeling sick, and delivery clerks who will ensure that all items sent for and received from delivery are properly sanitised, as well as recording the movement of these goods.

Is your business returning to work? Here's what you should know

Amid the Covid-19 crisis and the nationwide shutdown, many South African businesses may be struggling to pay their rent, since they're not able to run their business as normal and bring in expected revenue levels. So, as a tenant, what rights to you have when it comes to paying rent if you're a "non-essential" operation, such as a sports retailer, a bottle store, or an office offering professional services? And as a landlord, what is the correct course of action to take with these kinds of tenants given the economic challenges of the coronavirus pandemic?

Firstly, it's important to understand a few key legal terms that apply in this situation:

Force majeure

A force majeure clause in a rental agreement can excuse a party from meeting some or all of its obligations as a result of certain defined circumstances. Unlike some other countries where “force majeure” is legislatively defined, the term is foreign to South African common law, even though it's often included as a clause in South African legal agreements. A force majeure clause may allow for a temporary suspension of obligations during the force majeure event, rather than a complete termination of them altogether.

Supervening impossibility 

If there is no force majeure clause, South Africa's common law doctrine of supervening impossibility may apply - that is, the performance by one party is objectively impossible in order for them to uphold the lease agreement as a result of events that cannot be predicted or avoided. So for example, if you're a bottle store, you're currently forbidden by law to sell alcohol during the lockdown, so there is an impossibility to trade due to events out of your control. These events are known as a vis maior (“major force”) or casus fortuitus (“accidental occurrence”).

What supervening impossibility does not cover

It's important to realise that finding an obligation expensive or challenging does not mean that it is objectively impossible, in the eyes of the law. At the same time, absolute factual impossibility also does not apply. That is, performance may still be objectively impossible, but it has become so difficult or burdensome that the party cannot reasonably be expected to perform. For this reason, "performance" in a legal sense may be regarded as impossible while still being factually possible.

In order to determine whether supervening impossibility applies in the case of Covid-19, it's important to look at factors surrounding the particular lease, including the nature of the contract, the relationship of the parties, the circumstances of the case and the nature of the impossibility. In South African legal precedent, the limitations for the standard of impossibility are very stringent, including the fact that the impossibility must not be self-created, and must not be either party's fault.

So what does this mean?

When looking at whether these two legal concepts apply during Covid-19, there's no blanket answer, and the exact specifics of the case need to be examined.

If a court were to uphold a tenant's claim to be excused from paying their lease due to an ability to trade (as with the liquor store example above), then every other South African would be able to claim the same - that is, that they cannot work therefore they are unable to settle car repayments or mortgages. This knock-on effect would then lead to total economic collapse.

Therefore, from a legal standpoint, if there is no force majeure clause present, it can be difficult for a business to claim a supervening impossibility, and therefore they'd still be obliged to pay their rent. The landlord's obligations to settle debt costs with banks, assessment rates, water and electricity still remain.

The takeaway

If you're a tenant struggling to pay your rent during this shutdown since your business can't operate as normal, first check whether your lease agreement includes a force majeure clause that would cover an event such as a global pandemic. If there is no such clause, supervening impossibility may or may not apply depending on your specific circumstances. If you fail to pay your rent and supervening impossibility is found not to apply, you may stand to be in breach of your lease, and you run the risk of being evicted once lockdown ends.

A better solution

A far better approach is to speak to your landlord and try and reach a commercial agreement that benefits both parties. After all, it's in commercial property landlords' best interests to help their tenants, as the success of one is dependent on the other.

So, if you're a tenant running a non-essential business, see whether your landlord would be open to a rebate or remission for part of your rental payment during the national shutdown. Your landlord may apply various conditions to this concession, such as only agreeing to it if you are in good standing, and still holding you liable for things like parking and municipal charges. Even if this is the case, a resulting reduction in rental during these tough times would make such a discussion more than worthwhile.

Covid-19: Can you get rent relief on your commercial property?

A commercial property lease may sound simple in that it’s an agreement between a business – the tenant – and a landlord, but unfortunately it's not often that the interests of these two parties are aligned.

Besides knowing how to negotiate a commercial property lease so that you as the tenant are paying fair market price for what you’re getting, there are also some key legal aspects you should bear in mind to protect you both financially and commercially. Here are five common legal issues you should consider:

1. What rights do you have when it comes to occupation?

Are the premises you want to rent ready to move into straight away, or will your landlord need to complete a reinstatement or further construction / improvements before this can happen? If it’s part of your lease agreement that the landlord needs to make changes to the premises before you move in, make sure that the exact nature of the changes they’re responsible for is clearly laid out in the lease. The lease should also clearly lay out the timeframes for works completion / building compliance – and if there is a delay past a certain point, you as the tenant should have a right to walk away. Also think about this in terms of the lease’s beneficial occupation date vs. lease commencement date: if there are things the landlord and/or the tenant need to do to the premises prior to commencement of formal operations, an agreeable beneficial period should occur prior to the formal lease commencement date.

2. Who is responsible for paying municipal bills?

Make sure that you understand whether you as the tenant or your landlord is responsible for paying the rates, electricity and water bills for your premises. If you arrange that you as the tenant pay your share of rates to the landlord, include a clause that allows you to ask your landlord for proof of payment to the council for the portion of the bill you’re responsible for. To prevent services from being cut off, consider also adding in a clause that allows you to pay the municipality directly if the landlord misses their payments. On the other hand, if you fail to pay your portion of rates in a particular month, try and negotiate that services are only cut off after you have received written notice from your landlord, and then haven’t paid the outstanding amount for 60 or 90 days, as an example.

3. Can you sublet the premises?

If you may want to sublet a portion of your commercial premises in future, make sure that your lease agreement allows for this – and whether the landlord needs to agree to the particular subletting tenant in question. Also consider what will happen if you sell your business: the new buyer may expect to take over the lease you’re your premises, so make sure that the lease addresses this issue as well.

4. What if there is damage to the property?

In cases of destruction to premises as a result of things like earthquakes, floods or fire, the landlord is usually favoured in a typical lease, and normally they can choose whether or not to cancel the lease or continue with it and repair the premises. But what would this mean for your business? You may want to agree that the lease can only be cancelled if the premises are rendered uninhabitable as a result of the damage, and that if the damage is repairable, you give the landlord an opportunity to do repairs within a certain timeframe. You as the tenant should not have to pay for these repairs (unless your negligence was the cause of the damage).

5. Is the landlord’s liability limited?

It’s a surprisingly common feature in commercial leases that the landlord is not liable for their tenant’s loss or damage on the premises – even if that loss or damage was caused by the landlord themselves. Be aware of this, and don’t accept clauses that exclude the landlord’s liability in the case where they were at fault. In the same way, if the landlord suffers damage or loss to the premises that were not your fault, you as the tenant should not have to pay for the damage.

6. What about fixtures, fittings and improvements?

Within the normal course of your lease period, you may want to install certain fixtures or fittings, or make improvements to the premises that you are renting. In most commercial lease agreements, you’ll need to get your landlord’s consent to make these changes – even if they’re improvements. If you know before you sign the lease what changes you want to make, you could simplify this approval process by listing them in a schedule as an addendum to the lease. And then after the lease expires, what will the process be for these changes be? Will you need to restore the premises to their original condition, or will you be obliged to leave the added fixtures and fittings for the landlord without being paid for them? While the end of the lease term may seem far away, it’s important to consider now what will happen at that point in the future so that you’re not caught out of pocket.

Signing a lease for commercial premises can be intimidating – especially when dealing with legal jargon and comprehensive clauses that you may not understand in their entirety. In all cases, make sure you get legal assistance when entering into a lease with a landlord; never try to sign one without formal input. Be comfortable with the contents of your lease as this will allow you to be clear about what you’re willing to compromise on, and where you’re not willing to budge, where you’ll be more likely to enter into an agreement that meets your business objectives.

Signing a commercial lease? Here are 5 legal considerations.

Within the economic hub of Gauteng lies Waterfall, the province's latest - and largest - urban development concept. Stretching from Modderfontein east of the N1 to beyond Kyalami in the west, Waterfall offers everything from hospitals and shops to housing developments, industrial developments and office blocks containing an impressive range of blue-chip companies. Overall, Waterfall aims to be the ultimate work-life destination, where residents can get everything they need in one destination.

Waterfall's CBD is Waterfall City, located at the Allandale Road exit. This is Johannesburg's latest commercial hub, which also contains the Mall of Africa, the continent's largest single phase mall with more than 131,000m² of retail space.

Throughout the Waterfall Precinct, the emphasis is on state-of-the-art spacial design set amid beautifully green surroundings, including running lanes and a luscious green park.

When it comes to Waterfall office space, Waterfall City offers the following P-Grade office options including:

<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/waterfall-business-park/gateway-west-office-property-to-let-in-waterfall-business-park/cb495024-3385-4827-85cc-f9f62a5adabf" target="_blank" rel="noopener noreferrer">Gateway West Office Park</a>
<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/waterfall-business-park/the-ingress-office-property-to-let-in-waterfall-business-park/0eb6a90f-4182-45e8-951b-be48e2cb04db" target="_blank" rel="noopener noreferrer">The Ingress</a>
<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/waterval-gp/waterfall-point-office-property-to-let-in-waterval-gp/cb1cbb02-bf2d-459d-b6d2-30473a15d38c" target="_blank" rel="noopener noreferrer">Waterfall Point</a>
<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/waterval-gp/hertford-office-park-office-property-to-let-in-waterval-gp/86dc27ec-cf3b-4189-a1ca-93cde54c59c2" target="_blank" rel="noopener noreferrer">Hertford Office Park</a>
<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/waterfall-business-park/corporate-campus-office-property-to-let-in-waterfall-business-park/2c47edc0-fa6d-466e-a384-9a3c37c1f89d" target="_blank" rel="noopener noreferrer">Waterfall Corporate Campus</a>
<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/waterfall-business-park/ext-124-offices-office-property-to-let-in-waterfall-business-park/d4cf07c6-c9a9-4880-9335-cff97902fb9a" target="_blank" rel="noopener noreferrer">Ext 124 Offices</a>

Industrial space is also plentiful, and some noteworthy industrial options include:

<a href="https://www.blackpepperonline.co.za/properties/property/to-let/industrial/waterfall-business-park/waterfall-compact-units-lp-8-industrial-property-to-let-in-waterfall-business-park/a2d4d838-e854-450a-b98e-4b8937bb96b8" target="_blank" rel="noopener noreferrer">Waterfall Compact Units</a>
<a href="https://www.blackpepperonline.co.za/properties/property/to-let/industrial/waterfall-business-park/waterfall-logistics-precinct-south-lp-9-s-industrial-property-to-let-in-waterfall-business-park/fc80922c-2854-40e8-8213-8600630bbd3b" target="_blank" rel="noopener noreferrer">Waterfall Logistics Precinct</a>
<a href="https://www.blackpepperonline.co.za/properties/property/to-let/industrial/waterval-gp/waterfall-distribution-campus-industrial-property-to-let-in-waterval-gp/2405dc07-9fac-4a15-8892-c8e44d727d7e" target="_blank" rel="noopener noreferrer">Waterfall Distribution Campus</a>

Interested in securing office or industrial space within the Waterfall Precinct? Contact Simon on 083 261 2861 or on <a href="mailto:simon@blackpepperonline.co.za">simon@blackpepperonline.co.za</a>.

Waterfall Precinct

By the very nature of the job as a property broker, there are conflicts of interests that arise during any property transaction. After all, the property broker is a kind of “double agent”: he’s there to ensure the best interests of his client – the tenant – but he also needs to ensure that the other party in the deal – the landlord – is getting a good enough deal in order for it to be successful.

While this is not a problem when the deal is going well, if things go south, and the property broker’s interests start conflicting with those of the client or the landlord, it can be problematic. These interests could relate to a personal conflict, financial standings, shareholdings or a role in the company looking for commercial space or within the company leasing it.

There may also be direct interests, where the agent is offered a direct benefit (whether financial or otherwise) to have a deal sway a particular way. As an illustration, here are some examples where a conflict of interest may arise between the property broker and the client or landlord:

Direct conflicts of interest
<ul>
 	<li>The broker personally buys, leases or takes an option on a commercial property that they are advertising to let or sell</li>
 	<li>The broker receives monetary bonuses, shares, holidays, discounts or dividends from a company that the broker recommends to
his clients</li>
</ul>
Indirect conflicts of interest
<ul>
 	<li>The broker helps an employee, friend or business associate to take an interest in a particular property they are listing</li>
 	<li>The broker recommends a service provider to a client that is affiliated in some way with the broker’s relative, friend, or business associate</li>
</ul>
According to guidelines set out by the Royal Institute of Chartered Surveyors (RICS), the most important reason to avoid a conflict of interest is to prevent anything affecting your duty advise and represent each client objectively and independently, so that the client (and the public) can be confident you’re doing so without your own personal interests affecting your judgement. RICS Rules of Conduct set an overarching obligation on both members and RICS regulated firms at all times to “…act with integrity and avoid conflicts of interest and avoid any actions or situations that are inconsistent with its professional obligations.”

So, if there is a potential conflict of interest with a property agent, whether directly or indirectly, there are several things they should do.

Disclosure

If there is a potential conflict of interest, it is always ethical for the broker to disclose their affiliations to both the client and the landlord.

Conflicts of interest as a property broker

At the end of May, the SA Reserve Bank confirmed that it was keeping the repo rate steady at 6,75%, which meant that the prime lending rate would stay at 10,25%. While this conservative approach was taken to counter inflation, if the repo rate had been reduced, this may have provided some relief from our protracted, sluggish economy – which may well have improved prospects for our office and industrial property sectors as well.

While this hasn’t happened, industry analysts across the commercial property sector are saying that the downward correction of office and warehouse rentals may still continue for the foreseeable future. In contrast, there are those who predict a turnaround of the housing market on the back of the May elections, since this was the case after all five general elections previously held.

If this does happen, the industrial and residential market should start to strengthen, which is usually followed by the office sector.

National property REIT Redefine Properties reported its half-year results at the beginning of May, including average rental reversion rate of -6%, with a figure of -17% for industrial properties over the previous six months. A rental reversion rate reflects whether leases up for expiry that have been renewed in the last half a year had higher or lower rental rates than before. This negative reversion rate confirms that lower rental rates are now being negotiated compared to before. This sends a negative signal to other landlords across South Africa, whose leases may soon be up for renewal, as they may not be able to charge as much as they have before.

According to Redefine, the contributing factors for this negative percentage were low business confidence, larger vacancy rates, and higher rates and electricity prices. When added together, these are putting pressure on lease escalations.

So for the commercial and residential markets combined, the outlook is currently less than positive. At Black Pepper Properties, we feel that in this current climate, tenants have a great opportunity to capitalise on soft rentals and aggressive landlord incentives by locking in attractive terms for the long term.

Corporate real estate outlook: what the rest of 2019 holds

Ethics are the moral barrier that separate a property professional from other people in the market place. No matter where they are in the world, if a property professional is RICS affiliated, they show commitment to ethical behaviour by keeping to five professional and ethical standards.



1. Act with integrity



This is about being honest and straightforward in the way that they work, which includes things like sharing key information with their clients, respecting their privacy, not taking advantage of a client, and not allowing bias to override their professional judgement. If there is a potential conflict of interest, the agent should disclose this at the outset. They should also act consistently in the public interest when it comes to giving advice. 



2. Always provide a high standard of service



A RICS affiliated agent should always make sure that their clients receive the best possible advice and support. This means being clear about the service they are providing and what the client expects from them – if this is above and beyond their scope of competence, they should explain that they’re not the best fit for the client. 



This also means that the agent should be transparent about fees and any other costs or payments such as referral fees or commissions. They should also communicate with the client properly, and to pay for the services of others within agreed timeframes. 



3. Act in a way that promotes trust in the profession



The agent should always act in a way that promotes them and their firm in a positive, professional way. Overall, this is about understanding that being a professional is not just about how an agent acts at work: it’s also about how they conduct themselves in their private life. They should also understand how their actions affect others and the environment, and they should always do what they say they will in order to fulfil their obligations. Finally, they should aim to meet the true spirit of professional standards – not just pay lip service to it. 



4. Treat others with respect



A RICS-affiliated property agent should treat everyone they deal with in a polite, courteous and respectful way that also considers cultural sensitivities as well as best business practices. This means never discriminating against anyone for any reason: issues of race, gender, sexual orientation, age, size, religion, country of origin or disability have no bearing on how they deal with people or conduct business. 



5. Take responsibility



An ethical agent should always be accountable for their actions: they shouldn’t blame others if something goes wrong, and if they suspect something isn’t being done ethically, they should be prepared to take action. 



Taking responsibility also means acting with skill, care and diligence. If an agent has a complaint against them, they should respond appropriately and professionally, and should aim to resolve the conflict as fairly as possible. 



If the agent thinks something is not right, they should be prepared to question it and raise the matter with their colleagues or organisation. Alternatively, they should raise the matter with RICS or any other appropriate body.

Ethics - and what they mean in the property industry

When it comes to premium-end, flexible office space, we’re definitely in the golden age. As organisations change the way they view staff, productivity and business, there’s an increasing trend towards office space that’s as flexible as possible.
In terms of the physical space itself, this equates to things like reducing fixed-term office commitments and layout configurations, providing generous shared spaces for collaboration, hot desking, and access to use fully-kitted meeting and boardrooms. But this trend towards flexibility doesn’t just end there – it’s also showing in the way tenants view their commitment to office leases. In short: they don’t want to be tied down into traditional 3-5 year leases.
Enter companies like WeWork, the US flexible office space start-up that was recently valued at $47 billion. Just like Uber in the transport sector and Airbnb in the travel sector, WeWork is a disruptor in the commercial office space industry, working via an entirely non-traditional business model where they don’t own any buildings. Instead, they take on JVs with landlords, and then run the space on their behalf.
Essentially, WeWork is a global membership offering very flexible lease terms (you can rent month-to-month if you prefer), and the ability to add or take away desks as required. There are also a host of “trendy” perks – including things like free breakfasts, fitness classes, talks and mentorship programmes. Their focus is community, so they aim to foster an environment of collaboration between businesses within their space.
With presences established in many other countries around the globe, WeWork has now set its sights on South Africa, with the first space due to open in the Rosebank CBD on 1 August. The P-grade premises on Oxford Road will be leased from listed REIT, Redefine Properties, to become WeWork’s flagship location in the country. “Johannesburg is home to a huge number of innovative and established businesses as well as entrepreneurs and start-up’s, and we’re looking forward to learning from those who join our community of 400,000 members across 400 locations around the world,” says Eugen Miropolski, WeWork International’s Managing Director.
In terms of its competitors, WeWork definitely presents a threat to SA’s current office leasing market, who in contrast to most landlords and property managers, are wholly focused on the customer experience. So, unlike conventional office tenants, WeWork members never have to worry about any unbudgeted costs for things like utilities, Wi-Fi, security, cleaning, coffee, tea, health juices, printing, reception services and mail handling. With the free use of attractive communal spaces that include phonebooths, wellness rooms and outside patio areas, it’s fair to say that no stone has been left unturned when it comes to occupant expectations.
WeWork’s significant global footprint gives them a major competitive edge to local suited office operators. With a WeWork membership card in hand, you could book a meeting in London or New York tomorrow at any of their offices – which makes doing business internationally completely accessible, and cheaper than ever.
Another possible disadvantage for WeWork’s competitors is that they’re unlikely to be able to compete on price. Most serviced office companies in South Africa have traditional leases with landlords, which means their prices are already set and will be hard to bring down to compete with WeWork’s, whose well-known business strategy is to be a loss leader in order to gain geographical footprint.
Whatever happens, WeWork’s arrival is set to shake things up in the serviced and traditional office sectors.


<figure class="wp-block-image" style="margin-left: auto; margin-right: auto; max-width: 800px"><img src="https://res.cloudinary.com/black-pepper/image/upload/h_479,w_640/w_800,h_600,c_fill/Screenshot-2019-05-30-at-08.59.34_kemie1.png" alt="wework" class="wp-image-24901" style="max-width: 800px; text-align: center;"></figure>



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<figure class="wp-block-image" style="margin-left: auto; margin-right: auto; max-width: 800px"><img src="https://res.cloudinary.com/black-pepper/image/upload/w_800,h_600,c_fill/Screenshot-2019-05-30-at-08.58.39_ozfceh.png" alt="wework" class="wp-image-24901" style="max-width: 800px; text-align: center;"></figure>

Office Space Disruptor WeWork Heads To South Africa

Johannesburg offers an abundance of office space in almost every area - from Parktown to Waterfall, to Fourways, and all the way through to Pretoria. There's space to suit almost every budget and size, from small start ups of a few people requiring a few square metres, to large corporates needing an entire building for their hundreds or even thousands of employees. In areas like Sandton, Fourways, Rosebank and Waterfall, there are many new, attractive developments underway providing ample space for any requirement.
<div class="itemFullText">

Here are our featured Gauteng commercial properties:

<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/rosebank-gp/144-oxford-road-office-property-to-let-in-rosebank-gp/546c206c-4f42-4a2f-a0fa-07e293ae49cd" target="_blank" rel="noopener noreferrer">144 Oxford Road, Rosebank </a>

144 Oxford Road in Rosebank is a 36,000m2 mixed-use precinct including office and hotel accommodation. The development offers unparalleled exposure onto Oxford Road, diagonally opposite the Hyatt Hotel, truly the gateway site into Rosebank. The office buildings will attract a minimum 4 Star Green Rating and the floor plate design will allow for individual brand identities per floor. Amenities include hotels, restaurants, shops, gyms and schools.

<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/sandton/the-marc-office-property-to-let-in-sandton/e643ffa8-00ec-4cb5-adbf-092602033377" target="_blank" rel="noopener noreferrer">The Marc, Sandton</a>

The MARC is ideally located in the heart of the financial district of South Africa, home to the JSE Securities Exchange, an array of investment banks and financial consultant giants. Sandton serves as South Africa's premier business and conference centre boasting 5-star luxury hotels and premier facilities and shopping destinations.

<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/glenadrienne/sandton-gate-office-property-to-let-in-glenadrienne/30441e13-3737-4895-844f-1446a8f9cf1b" target="_blank" rel="noopener noreferrer">Sandton Gate, Sandton</a> 

Sandton Gate is destined to be a world-class, mixed-use precinct, offering a lifestyle we're all aspiring to: city living with all the benefits of suburban life. The precinct overlooks the Braamfontein Spruit, one of Johannesburg's longest natural greenbelts, while being on the doorstep of South Africa's financial CBD. Less traffic, better business and all round smarter living.

<a href="https://www.blackpepperonline.co.za/properties/property/to-let/office/waterfall-business-park/gateway-west-office-property-to-let-in-waterfall-business-park/cb495024-3385-4827-85cc-f9f62a5adabf" target="_blank" rel="noopener noreferrer">Gateway West, Waterfall Commercial Estate</a>

The two Gateway Office buildings are situated on one of the most prominent sites in Waterfall City at the entrance from Allandale Road and the Northern entrance of the Mall of Africa. The central piazza between the buildings is designed to be a corporate square and urban green open space for the building is ideal for informal discussions or lunch breaks.

Looking for office space somewhere specific in Gauteng? Browse <a href="https://www.blackpepperonline.co.za/search?sortBy=ToLet&amp;refinementList%5Bcategory%5D%5B0%5D=Office&amp;refinementList%5Bsuburb%5D=&amp;refinementList%5Bcluster%5D%5B0%5D=Sandton%20and%20surrounds&amp;refinementList%5Bcluster%5D%5B1%5D=Rosebank%20and%20surrounds&amp;refinementList%5Bcluster%5D%5B2%5D=Rivonia%20and%20surrounds&amp;refinementList%5Bcluster%5D%5B3%5D=Midrand%20and%20surrounds&amp;refinementList%5Bcluster%5D%5B4%5D=Fourways%20and%20surrounds&amp;refinementList%5Bcluster%5D%5B5%5D=Bryanston%20and%20surrounds&amp;refinementList%5Bcluster%5D%5B6%5D=Parktown%20and%20surrounds&amp;page=1">more of our Johannesburg commercial properties now</a>. Or, call Simon on 083 261 2861.

</div>

Johannesburg Office Space

Making an informed commercial property decision involves looking at several factors using a few key economic models. This financial analysis, together with property experience and market knowledge, will help you to procure suitable premises that are fairly priced.



Deciding whether or not to renew a lease or relocate? This requires some financial analysis around the anticipated lease costs. First, you'll need to compare occupancy costs to various alternatives in the marketplace. This is important because&nbsp;what often appears to be the best deal on the surface in reality may not be the best alternative after evaluating all&nbsp;the economics involved.

Although the concept of leasing commercial space is simple, office and warehouse leases have an increasingly complex financial structure. How does one establish the true cost of a lease?

A typical commercial lease may include the following:
<ul>
 	<li>Base Monthly Rental</li>
 	<li>Operating Costs</li>
 	<li>Annual Escalations</li>
 	<li>Additional rent provisions for increases in operating expenses</li>
 	<li>Caps or ceilings on operating expense escalations</li>
 	<li>Beneficial occupation</li>
 	<li>IT infrastructure</li>
 	<li>Relocation costs</li>
 	<li>Parking / Loading requirements</li>
 	<li>Options - renew, expand, cancel</li>
 	<li>Electrical supply requirements</li>
 	<li>Common area charges</li>
 	<li>Specific tenant requirements</li>
</ul>
Tenant installation allowances and budgets

Once you've established occupancy costs for each option, it's easier to understand the underlying economics of the proposed lease transactions. With this figure in hand, calculate the occupancy costs over the term of the lease. The projected annual cash flows are subjected to discounted cash flow analysis at an appropriate discount rate or cost of capital to account for the time value of money. The results are the price of the deal or the Net Present Value (NPV).

The discounted present value of the lease as a level rate per square metre allows you as the&nbsp;tenant to measure the comparative financial structures of each lease proposal. When comparing alternatives, analyse the occupancy costs in terms of rentable and usable square metres, so you can account for differences in common area factors and overall space efficiency. The result is the “effective occupancy cost per square metre”, which provides a meaningful comparison of the each unique property opportunity.

Understanding the overall cost implications will improve your chances of securing a competitive deal. For an effective negotiation, you need to have a thorough&nbsp;understanding of the deal economics, which allows you to gauge the impact of various economic components on the value of each lease.

Comparing rental rates and negotiated concessions to alternative transactions in the market is an useful way to compare different conditions. Our objective on behalf of our clients is to structure the transaction where the landlord is accommodating and makes reasonable market related concessions to secure a deal.

Want to find out more? Email us on simon@blackpepperonline.co.za or call Simon on 083 261 2861.

Making Informed Commercial Property Decisions

Our clients often wonder what the process is when it comes to a landlord approving signage rights for a tenant in a leased office building. Signage permissions are strictly up to the landlord, and are usually negotiated subject to zoning, local municipal restrictions or deed restrictions.

A landlord will usually give anchor tenants exclusive rights to signage on a building, as a reward to them for leasing all or the majority of space within a building or business park. Multiple tenants in a single commercial building may also be permitted to erect signage, with the anchor tenant usually being given preferable rights.



In some cases, a tenant may negotiate the right to have standalone signage erected outside of their building. Typically, landlords offer signage for multiple tenants that displays each business’s information and location within a business park or specific commercial building. A primary reason for tenants to commit significant funds to premium office addresses is to attract and retain staff while at the same time making a positive impression to customers.

In today’s competitive economy, branding is a priority. For this reason, building or perimeter signage forms an important part of the advertising process. Signage rights are not always critical or even important to some tenants, but they may be to your business. If this is the case, try to request signage upfront so that the issue can form part of the lease negotiation process. The larger you are as a tenant, the better your chance of obtaining this concession.&nbsp;

Chat to your property practitioner about each prospective landlord and identify opportunities where the landlord has previously offered or conceded on signage rights. For help, contact Simon on 083 261 2861 or email simon@blackpepperonline.co.za.

&nbsp;

Signage on leased premises: what's allowed?

Understanding the cost drivers for commercial space relocations is an important part of maximising value for your business. By conducting credible market research and identifying viable and competitive business locations, you'll ensure that your staff and rental costs are somewhat contained.



The main cost drivers are:
<ul>
 	<li>Choice of location</li>
 	<li>Negotiation and structure of lease agreement</li>
 	<li>Optimising the space layout</li>
</ul>
These factors can vary significantly, and credible market information creates competition between commercial property landlords to secure a tenant. For this reason, structuring a lease transaction that meets your business and financial objectives as a tenant can prove vitally important. In today’s market, we are seeing landlords offering increasingly flexible terms to retain and attract tenants.

In this environment, there's an opportunity for you as a commercial property tenant to take full advantage of market conditions. Securing suitable volumes of office space via efficient design as well as construction management can both yield significant cost savings. In order to make well-informed property decisions, we recommend using a competent property practitioner, space designer and construction team. Appointing a team of experienced professionals will help make sure that your commercial premises are complete, fitted and operational when you occupy the commercial space.

At Black Pepper Properties, we're able to source business premises, assist with negotiations, and help you partner with a design company - all of which go a long way to ensuring competitive pricing. Want to know more? Contact Simon on 083 261 2861 or on simon@blackpepperonline.co.za.

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