Industrial Progress in the Southern Basin of Durban
As one of the most established industrial destinations in the eThekwini region, the precinct known as the Southern Basin of Durban has been a hive of industry since the mid-1920’s and is home to hundreds of different industries and industry leaders. This narrow passage of land stretches approximately 24 kms from the Port of Durban to Umbogintwini and includes industrial suburbs such as; Bayhead, Congella, Clairwood, Isipingo, Jacobs, Maydon Wharf, Mobeni and Prospecton.
Southern Basin Industrial Property Market
Resident economist and Southern Basin specialist for Deal Core Property Group, Samantha Anderson believes that the difficult economic climate has had a definite impact on the property market , but due to its proximity to the Port the Southern Basin has sustained demand and has kept the market active.
Anderson goes on to explain that rentals in this precinct vary between R45 and R65 per square metre and depending on the size and building type sees fluctuating levels of interest. For instance, in the industrial node of Jacobs, demand for 5000 m2 of good quality warehousing, with 7m or 8m height to the eaves and 2500 m2 or more of yard has seen the most activity.
“Tenants are primarily looking at this area for location. Part of Jacobs falls within Zone 1 from the harbour which is highly sought-after, as it has the lowest logistics costs. Jacobs also offers low rental rates compared with other industrial suburbs of the Southern Basin ,” says Anderson.
Southern Basin New Developments
Due to its offerings, the Southern Basin has very little available land in close proximity to the Port and has created the need for new warehousing facilities. This has led to property developers Fortress Income Fund to start construction on the R3, 5 billion Clairwood Logistics Park, which will bring about much needed employment and business opportunities. Fortress is developing around 350 000m2 of A Grade warehousing and yard space.
According to Anderson the new development at the old Clairwood Race Course will offer large logistics companies; state of the art facilities, generous yard space and excellent security. Unlike other buildings in the Southern Basin, which mostly consists of converted old factories – this exciting development will provide tenants with warehousing options of substantial height and yard space.
Currently on the market is a rental opportunity in the Clairwood Logistics Park. 23 352 m2 of A grade warehousing is under construction and will form part of this modern and secure industrial park. This property will offer tenants convenient accessibility to amenities and main arterial routes and will be ready for occupation in July 2018.
Another part of the Southern Basin which has received much attention is Maydon Wharf. Recent upgrades made by Transnet National Port Authority (TNPA) where to berths 1,2,3,4, 13 and 14 that were widened and deepened. This undertaking was completed this year and has enabled larger ships to berth at these specific locations, which consequently resulted in improved productivity.
All land and warehousing in Maydon Wharf is owned and controlled by TNPA, through leases to Port Terminal Operators, with the market dominated by large multinationals. TNPA has ceased to offer long-term rental agreements on properties that have gone out to tender, which may reduce private sector capital investment in facilities. “It is my thinking that a new strategy needs to be developed by TNPA to encourage the upgrade of Port property. Deal Core recently let 23 000 sqm of property in Maydon Wharf which if upgraded would attract higher rentals and offer far more versatility to tenants,” says Anderson.
Deal Core Property Group provides industrial tenants with prime warehousing and logistics spaces in the Southern Basin of Durban. Our team of highly qualified area specialists boasts expert knowledge of their respective precincts and are dedicated to securing the best suited property for your business’ needs. Call us today to view your next base of operation in the Southern Basin
Author: Deal Core Property Group