Industrial redevelopment - 35 Jeffels Road, Prospecton
Many property developers have found success through the innovative use of outdated vacant warehouses and factories. These properties are inspiring creative redevelopment and are examples of an escalating national trend. Often less risky than speculative new construction, industrial redevelopment is attracting investors and tenants that find these buildings can offer key advantages in a rigorously competitive commercial and industrial real estate market.
In areas that retain thriving industrial activity, such as the Southern Basin of Durban in KwaZulu Natal, aging industrial properties are being refitted to meet the needs of a changing market. For instance, redeveloping these buildings for flexible users often is a viable, cost-effective alternative to new construction. Property owners are able to market these diversified buildings to light industry and distribution or assembly companies that may need different spacing configurations.
Industrial buildings that have outlived their original purposes for different uses or functions often are perfect for redevelopment. A good example of such buildings are the old textile industry buildings. Numerous attributes make many vacant industrial buildings attractive for redevelopment, including proximity to major transportation networks, proximity to the Port in the case of coastal areas, and thoroughfares, parking ratios, architectural interest, potential for open-plan layouts, and high ceilings and notwithstanding the current structures, height, and land extent.
The prospect of efficient and profitable leasing opportunities also drives many industrial redevelopments. For instance, the former Shoe City Warehouse in Prospecton located at 35 Jeffels Road seemed to have limited leasing potential as an outdated distribution centre type property which measured approximately 21 000m² under roof until the development team capitalized on the industrial character of the building along with the strategic location. Recognizing the demand for smaller warehousing units, along with efficient vehicular circulation, the development team reconfigured the space to accommodate four smaller units measuring approximately 4500m each. The opportunity to push the creative envelope in designing these efficient industrial parks from these converted facilities is considerable motivation for some companies.
The redevelopment of these outdated vacant warehouses and factories doesn't necessarily compete with newer more modern buildings. In the Southern basin of Durban, which is a centre for bulk warehousing in the Greater Durban Area, industrial redevelopment consists of improving and modernising existing buildings. The natural inclination of property developers is to create functional space at a reasonable costs. In such markets, there are significant price differences between redevelopment and new developments. Ultimately, they are different offerings for different tenancies.
The success in the redeveloping 35 Jeffels Road and the sense of place it has created has in turn sparked real confidence in the local market as it nears completion which is expected in July 2021.
To be part of this exciting development, contact Ryan Berry on 083 6078128 or ryan@dealcore.co.za