Property giant reveals devastating impact of South Africa’s economy on business, with Sandton vacancies at 25%

rvZA

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This is happening globally. The world will never be the same again. Business as we knew it is fading away and will not be existing in a few years from now. Wait until the 'big hunger' strikes the world. Covid will look like a little sheep.
 

rvZA

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Go get vaccinated people so the corporates can fill their buildings with warm bodies!

Yep. Until the world realizes that vaccines are not there to save the world, economies, jobs, etc., it is merely there to prevent hospitals from getting overthrown. The virus will still be there. Even if the world has a 100% vaccination rate and each person goes for a booster shot every 6 months for the rest of their lives, people will still get infected, get sick, some will still die. Travel restrictions will still remain. During spikes, lockdowns will still be there. The virus will still mutate and become more deadly. The world will still see economies with restricted businesses in future, masks will be worn in public on a permanent basis. This is the new reality we face.
 

LCBXX

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Yep. Until the world realizes that vaccines are not there to save the world, economies, jobs, etc., it is merely there to prevent hospitals from getting overthrown. The virus will still be there. Even if the world has a 100% vaccination rate and each person goes for a booster shot every 6 months for the rest of their lives, people will still get infected, get sick, some will still die. Travel restrictions will still remain. During spikes, lockdowns will still be there. The virus will still mutate and become more deadly. The world will still see economies with restricted businesses in future, masks will be worn in public on a permanent basis. This is the new reality we face.
An overflowing hospital makes the most money.
 

AstroTurf

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This is happening globally. The world will never be the same again. Business as we knew it is fading away and will not be existing in a few years from now. Wait until the 'big hunger' strikes the world. Covid will look like a little sheep.

Yup,

Here is New York City....

 

rvZA

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An overflowing hospital makes the most money.

That has been my thoughts from the onset, it is good business. Not only to hospitals, but a number of sectors involved. But, seems governments across the globe has other plans, and it does not include economies.
 

Paul Kemp

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Don’t feel too sorry for them. They’re still buying up smaller privately owned buildings on auction.
 

garp

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I think only 25% vacancy is a very optimistic figure. There is a huge amount of property in Sandton and elsewhere that technically isn't vacant as companies have no clue what to do with their billion rand office investments, but that is completely empty and for all intents and purposes abandoned.
 

grok

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"Let Sandton occupations be downgraded like the economy.. we will pick it up." - Mokonyane, probably.
 

Arzy

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The vacancies are just part of the problem.

I know of tenants going from R280/sqm+ to R70/sqm just so that they don't give the space up completely. Some landlords are basically just trying to cover their holding costs instead of shuttering the buildings.
 

PaulMurkin

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The issue came about because COVID made the world move to a WFH model and successfully so.
The property giants need to adapt or die, the offices they kept building on and on, it had to come back to bite at some point...

It will return to some kind of normal, when the companies with Bums-On-Seats mentalities force their long suffering staffers to go back to the office... However, those kinds of companies are fading fast, people don't want to work for them, and COVID helped bring that fact to greater mass consciousness.
 

krycor

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The issue came about because COVID made the world move to a WFH model and successfully so.
The property giants need to adapt or die, the offices they kept building on and on, it had to come back to bite at some point...

It will return to some kind of normal, when the companies with Bums-On-Seats mentalities force their long suffering staffers to go back to the office... However, those kinds of companies are fading fast, people don't want to work for them, and COVID helped bring that fact to greater mass consciousness.

I suspect the office will be changing from work from office to an interact, collaborate & training center.

Ie the office needs are changing and will be reflected in work place re-design. I do think we will still work at the office sometimes but just less and the days you come in are for more impactful things with team.

If you’ve worked in telecoms or other it service sector, it’s been like that for years now.. you come in for meetings and getting admin done but work is at customer or home.
 

PaulMurkin

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I suspect the office will be changing from work from office to an interact, collaborate & training center.

Ie the office needs are changing and will be reflected in work place re-design. I do think we will still work at the office sometimes but just less and the days you come in are for more impactful things with team.

If you’ve worked in telecoms or other it service sector, it’s been like that for years now.. you come in for meetings and getting admin done but work is at customer or home.
I was working from home, on and off before Covid. We were planning to do it anyway because we ran out of space at the office and also because of the office politics affecting team morale. Much of 2019 I spent working from home but I had to go in to perform specific kinds of testing.

I used to go in 2 days a week to supervise the engineering shop. Then COVID came and I've been home ever since. Everything is done from home, except I go to the office maybe once every 3 months to ensure the technical department are doing what I told them to do, and doing the work correctly or I go in when there's a non-conformance or engineering query that we need to look at physically. The reasons I went in previously i.e. prior to covid was because the uber expensive test probes were kept there. During the lockdown the company decided to rather buy me my own one, and at R130,000 a pop its paid for itself.

I work effectively with Teams, and my desktop phone, both with the local and international teams. Even code review is done via Teams
 

WollieVerstege

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The issue came about because COVID made the world move to a WFH model and successfully so.
The property giants need to adapt or die, the offices they kept building on and on, it had to come back to bite at some point...

It will return to some kind of normal, when the companies with Bums-On-Seats mentalities force their long suffering staffers to go back to the office... However, those kinds of companies are fading fast, people don't want to work for them, and COVID helped bring that fact to greater mass consciousness.
Correct. This trend has been happening for over a decade already. Some companies have been offering WFH since the 00'ies. Covid only accelerated it.
Next up are shopping malls and retail outlets.
 

dualmeister

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As more people start working from home permanently these empty office blocks will just increase.
I predict many new houses / developments will focus on two spaces. The living / personal section and a home office space.
 
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