Industrial Property in South Africa
Besides the likes of Tiger Brands, SA Breweries and other strategic manufacturing facilities, manufacturing in SA have like many other countries at the hands of China that can manufacture goods far less than we can in this country.
Consequently, industrial properties in South Africa compromises of the large strategic manufacturing facilities as stated above, a plethora of smaller buildings tanning in size from 100 square meters – 200 square meters occupied by mainly service industries and finally large box warehouses occupied by logistics companies.
The large manufacturing facilities usually own their own properties, the smaller units are either owned by private investors or are owned by the occupant.
The big box warehouses are generally owned by the property is that the maintenance costs are much lower than office or retail properties and are easier to manage.
The advantage of investing in industrial property is that the maintenance costs are much lower than office or retail properties and are easier to manage.
Returns vary between 9% and 10% net after operating costs and rentals generally escalate at 8% p.a. compounded.
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