Season's Greetings from RCP Commercial Property Brokers in Gauteng

RCP Commercial Property Brokers Management and Staff would like to wish all our loyal Customers and followers a joyous holiday season and a smashing New Year!!!

Creating a better business future by enhancing the surrounding environment of your commercial property

"The extra effort required to make another effort... is the secret of winning"

- Denis Waitley

Urban Clean Up

Winning business happens in many ways and is usually a result of a combination of factors that result in a deal being struck and a relationship being formed. It is not always the best offer or the right business personality ‘fit’ that is the deciding factor. Something as simple as your business address and the condition it is in could cloud the final decision.

Think about it – we do not always see the obvious, nor do we always notice what is absent but should be present, but subconsciously it can affect the mind-set and ultimately the deal. When it comes to commercial property it is not always expedient to have an upmarket address. But, consider that your offices may be located in a less than ‘attractive’ neighborhood and the surrounding approach to the office is a litter trap or the building itself has suffered from poor maintenance. We are not talking about a scruffy neighborhood by any means but one that has become less than pristine – it doesn't take much to set the mood – for example

• An unresolved pest bird problem can turn a nice enough building into an unsightly mess especially if the birds are concentrated at the main entrance.

• As for the litter - a local fast food vendor is directly linked to the litter in a kilometer radius as customers discard their food and drink cartons and wrappers as they proceed to their destination.

• Empty offices in your building can send a message that companies are struggling here and this train of thought can be infectious painting your company with doubt.

• The absence of a ‘Brand Name’ company in the building – this is especially important for retail but can also be a factor for other businesses. Being in the presence of a well-known and respected company will indirectly boost your company’s status.

It is well known that if you want the business you have to dress for the business. The same applies to your building and offices. Solutions do not have to be elaborate such as embarking on a face-lift for the building – start simple - clean and tidy is 90% of the problem solved.

Come to RCPBrokers and we can give you the best advice for your Commercial Property needs.

Retail therapy is on the up but it takes more than a pretty shop front to keep the cash registers going Ka-ching!

Speed shopping in Gauteng

Retail property to rent and retail property for sale remains hot property despite the poor economy and belt tightening price hikes.
Gauteng leads the way with a sizable 26.5% contribution to the nation’s gross retail industry value [source – Gauteng Provence Provincial Treasury]. Indications, whilst largely conservative, show that the retail industry is growing at a steady increase.

Expectations are high at this time of year in anticipation of the Christmas rush but other factors are coming into play to even the revenue spikes such as the school holidays being spread more evenly over longer periods throughout the year.

But with all the studies and reports, we only have to get into the car and take a drive on around Gauteng on a Saturday to see that retail therapy is this nation’s chosen means of releasing some pent up frustration with the state of the economy and resulting work, life and social pressures. We as a nation are clearly born to shop! It is our chosen weekend activity and there is never any fun in window shopping - something needs to be bought if only as a souvenir of the latest trip to the local mall.

Studies show that as consumers we are spending less per trip on groceries but going more frequently. This is interesting and is probably in an attempt to hang onto the bulk of our income for a longer period per month in order to make us feel like we still have a sizable expendable income! From experience this strategy ultimately leads to an increase in monthly spend as more incidental items are added to a small basket where as these same items are left safely on the shelves when piloting an already creaking trolley through the busy Saturday throng of shoppers. Not to mention the extra fuel!

Outside the malls the urbanization of Joburg and Pretoria is in full force resulting in malls and shops mushrooming on almost every other block. Older more established neighborhood malls are getting revamped to compete with the shiny new shopping centres a mere couple of kilometers away.

All this looks good for our retailers but this doesn't mean that they can be complacent and wait for the cash registers to fill. Unlike the global trend of online shopping showing an increase, especially over the holidays, our nation still likes to get out there and shop in the flesh, but you can be assured that online shopping has reduced the budget of our average shopper.

It is important for shops to reach outside the mall to engage and attract shoppers. Online shopping and especially online browsing has changed the way we interact with the retail industry. The electronics, fabrics, clothing, etc. shop in the mall that also has a website, social media and a blog promoting their products will have a line of customers coming to them directly as a result of their promotional activities. This aligns with our lifestyles as we are busy and there is much to fit into a weekend - hoofing around from mall to mall looking for the best deal, prettiest dress, most fun kids’ toy, etc. is a waste of our precious time.

Lastly our prodigious culture for shopping, our local fast-growing, affluent and influential black community and a general increase of high net worth individuals in Gauteng [Related article] have attracted the interest of international property developers and retailers. So look out for more shops, malls and international brands in your neighborhood soon!

If you want to start your retail business and are looking for shop premises then come to RCP Brokers as we have shops to let all over Gauteng.

Commercial Property and the increase in our nation’s high net worth individuals in South Africa

Gautrain has a positive effect on the value of commercial property

Overall reports show that Global Office Rental performance has put on the brakes and slowed to a weak and sluggish growth. This tread is particularly visible in the ever increasing gap between the prime locations and less desirable commercial property, although there is always the obvious trade-off consideration between affordability and location. Traditionally it was the retail, direct to the public sales, that had to be conscious of their location, but now the commercial and B2B are also finding increasing benefits of taking advantage of more central locations. Areas like Sandton, Rosebank, Centurion and Midrand remain an ever popular choice as a commercial property rental location.

Added to this marketresearch.com has identified that High Net Worth Individuals (HNWI’s) in South Africa are on the increase and are looking towards areas like Sandton, Bryanston, Rosebank and Sandhurst for their luxury homes. This is great for retail property but what does this mean for commercial property sales and rentals?
In terms of investment the real estate market is relatively safe, with property value on the increase and location becoming more important, an investment in a local commercial property would seem like a good choice for any HNWI wanting to add to their portfolio.  See our article about the benefits of investing in commercial property - Why Invest in Commercial Property?
For potential occupants of commercial property the proximity of the Gautrain increases the viability of the commercial property and as such office space within easy commuting range of the Gautrain stations has grown in popularity. In response to the demand for office space close to the Gautrain there has been a noticeable surge in the development of commercial property along the Gautrain route.
For Businesses operating in locations such as Sandton and Rosebank that are attractive to both investors and commercial rentals alike there is a sense of business prosperity and success that would normally be absent in a slow or sluggish economy.

Why Invest in Commercial Property

Why Invest in Commercial Property

Investing in Real Estate has always been and still is a necessity for anyone who wants to secure their future and can offer great returns over a long term period. Investing in Commercial Property is often overlooked and promise many benefits over residential property.

Different ways of Investing in Commercial Property
Direct Investment – Buying the property or a share in a property.
Investment Portfolio – Investing in a collective scheme, such as a unit trust.
Stock Market – Investing in shares through collective schemes that invest in property companies that are listed on the stock market.

Benefits of Investing in Commercial Property
Diversifying Risk
Mr Van Biljon-  Business Partners,  says that investing in commercial property as a long term investment strategy offers attractive risk adjusted returns in comparison to other investment or asset classes.

Multiple Earning Potential
Earn money through the Income from rental to a tenant, as well as the Capital Growth from the increase in the value of the property. This can also provide long-term security with high returns on longer rental leases.

Less Competition
Commercial properties are often overlooked and you are not competing with homeowners in the market as is often the case with residential property. You also have a greater choice of location because you can consider properties on the merits of the specific infrastructure and it doesn't matter so much where you invest.

Commercial Property Appreciates Differently
Rates for commercial property sales are determined based on how revenue is generated for that particular property, whereas residential property is influenced by the value of the whole neighbourhood’s properties. Commercial property investment offers a steady growth. There is also less risk as the lease contracts tend to be longer and you mostly will have one tenant per building, thus reducing the risk associated with the investment.

Good investment for SME’s
There seems to be a misconception among SME owners that renting premises will offer greater flexibility than ownership. The opposite is true, when long-term tenancy can’t be secured the investment you made by improving the rented premises will be lost if your lease cannot be renewed. By purchasing a commercial property wisely (with say a 30% deposit), the cash flow requirements could match the rental payments after the first two years. This means that SME owners can save up to 50% on premises costs over a 10-year period.