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Johannesburg Office Market Outlook Q1 2017

The current political climate may well damper future growth in the Johannesburg office market with rental growth slowing down. A bulk of new prime node stock is expected in 2017 which could exert pressure on rentals and may create short-term vacancies. However, evidence has proven that prime nodes can be expected to perform satisfactorily, even during the most feverish macroeconomic conditions and prevailing political instability. This is mainly due to the consistent healthy demand for high quality accommodation witnessed in prime nodes. Investors and occupiers will be pragmatic when making decisions, especially occupiers seeking more flexibility in lease terms.

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