Sandton - Boom or Bust?
Sandton is Johannesburg's crown jewel, with skyscrapers abounding in an ever changing skyline. Multi National Corporate headquarters are scattered throughout the richest square mile in Africa.
Sometimes it is hard to keep up with all the changes happening in Sandton CBD, so we have summarised all the latest developments, popular offices to rent, hotels and restaurants. This is the only place that you will find a fully comprehensive overview of the office developments in Sandton.
The developments seem to have no stopping right now. It's a mouthful, so take and deep breath and enjoy.
The R2 billion-plus Village Walk redevelopment in Sandton - now dubbed 'The Marc' - is expected to be completed in March 2019, with the completion of its Tower A - but the first official opening of the retail segment will be in July, followed by Tower B's launch in August 2018.
The development consists of the two office towers (A and B) which rise along the Maude Street and Rivonia Road site boundaries respectively. The first office tower consists of 12 floors, providing a total of 35,000 sqm of floor space. This tower will be owned by MMI Holdings, who "is currently looking for suitable tenants to take occupancy of the building".
The second, taller tower consists of 17 floors, providing a total of 27,000 sqm of floor space. The tower is multi-tenanted with the majority of space occupied by ENS Africa, with 9,000 sqm of floor space in the tower still available to let.
In addition, there will be a retail centre at the base of towers comprising of restaurants, fashion outlets, general retail, a gym and medical suites, easily accessible from the street and parking levels. In terms of retail space, the development is anchored by Pick 'n Pay and Food Lovers Market, as well as Planet Fitness and Clicks.
Petrochemicals company Sasol's shiny new headquarters claim to boast Africa's largest rooftop garden, and have a gym, cafes and an art gallery.
Sasol has consolidated 17 separate office buildings - scattered across Gauteng - into one mega-building. It has a five-star Green Star rating, as well as generators that mean it is totally independent of the electricity grid.
A Boeing 737 could be suspended in the west atrium of 1 Discovery Place - the new Sandton headquarters of the health, life and short-term insurance provider Discovery - without it touching sides. Among the many statistics about the impressive building, this one seems to stick in everyone's mind.
Early publicity said it was "the largest single-phase commercial office development in Africa". It was also the largest new building to receive a five-star rating from the Green Building Council SA.
It has 4km of aluminium balustrades, 4,500 LED downlights and 50,000m² of tiling.
The last week of April 2018 will be remembered by Sandton enthusiasts for many years to come. It was the week that The Leonardo, currently under construction in Sandton, has been boosted from 47 floors to 55 - making it the tallest building in the city at an expected height exceeding 180 metres. The Leonardo surpassed the Michaelangelo Towers (140m) and then the Sandton City spire (141m) to become the tallest building in Sandton.
The Central - Werksmans
The Central comprises a 14-storey office building with Werksmans Attorneys occupying eight floors;
The development is being built on a 100,000sqm site by Investec and Cri-Eagle to accommodate office, retail, hotel and residential development. It is located on the corner of Rivonia Road and Johan Avenue, directly opposite Sandton City Shopping Centre and 100 metres from the Sandton Gautrain Station. The first development to take place on The Central site is a 20,000sqm state-of-the-art office building, comprising fourteen floors of unique office space. Eight of the fourteen floors have already been taken by leading law firm Werksmans. This building is expected to be complete before the end of the year.
129 Rivonia Road
The old Village Walk mixed-use development by Eris Property Group is a full redevelopment of this landmark site at 129 Rivonia Road. The development comprises of two high-rise towers - a 13-storey office tower and an 18-storey office tower, with a combined floor area of approximately 62,000sqm. Below the two office towers will sit two levels of retail space spanning approximately 15,000sqm with a seven-level parking basement of around 100,000sqm to service the precinct. The project is set for completion in early 2019.
Kgoro Central is the sizeable 200,000sqm mixed-use art precinct being developed around a public square situated above the Sandton Gautrain Station. Developers Regiments Real Estate report that the development is being rolled out for final completion in 2024. Kicking off in June this year, its first phase of two levels of retail, three levels of parking and 304 residential apartments is scheduled completion by the end of 2018. By 2021, this will be joined by a hotel with serviced apartments, two more retail levels, offices and a high-end residential building, The Jewel.
The 19-storey-high final phase of the mixed-use Alice Lane development is anchored by Bowmans Law
Abland is building on the success of the first two phases of its mixed-use Alice Lane development, with the third and last of three prominent buildings, nestled around a shared public piazza. It consists of 35,000sqm of space and will be 19 storeys high.
Sandton Gate is destined to be a world-class, mixed-use precinct, offering a lifestyle we're all aspiring to: city living with all the benefits of suburban life. The precinct overlooks the Braamfontein Spruit, one of Johannesburg's longest natural greenbelts, while being on the doorstep of South Africa's financial CBD. Less traffic, better business and all round smarter living.
92 Rivonia Road
With its ultra-prime location, once completed in the second quarter of 2018, 92 Rivonia Road will include facilities for showrooms, workshops, retail, conferencing, entertainment, flexible office, and ample parking in two separate lots, one underground and one above. This integrated, pedestrian-friendly property is targeting a GBCSA 4 Star SA rating.
Advocates @ 2 Pybus
Redefine Properties are well into their new office development, Advocates at 2 Pybus Road. Its location along the intersection of Pybus and Rivonia Roads puts the development strategically near some of the country's biggest blue-chip tenants, as well as near transport links like the Sandton Gautrain station and bus network. The nine-storey building will cover an area of 13,500 sqm and is scheduled for completion in April 2019.
The development of Katherine Towers, located at 46 Katherine Street in Wierda Valley, between the Sasol and Discovery head offices in the new Katherine Street mixed-use precinct, is a 21,000sqm P-grade development by Alchemy. It will become the new head office for Bidvest Bank. The development also features an additional 12,600sqm of flexible, efficient P-grade office space for prospective tenants. The 18-level building will offer expansive views from its prominent position. Katherine Towers' expected completion is in the second quarter of 2019.
Northern Lights, at the intersection of Fredman Drive and Rivonia Road between the Maslow Hotel and the Hilton Hotel, is expected to begin construction before mid-year. Developed by FWJK Developments, the skyline-changing 70,000sqm development will offer P-grade sectional title offices in four 38-level towers in the heart of Sandton Central's banking node. The development includes service and road upgrades with a six-lane extension of Fredman Drive constructed as part of the new mid-block road due to join Grayston Drive. Its two top floors will offer residential penthouse suites.
Old Mutual Emerging Markets
The 120,000sqm multi-storey mixed-use office precinct for the new Old Mutual Emerging Market Office is going up at the prominent corner of Rivonia Road and West Street across from the Sandton Gautrain Station. Developed by Old Mutual, Mutual Place is situated at 115 West Street. Old Mutual will occupy 30,000sqm of this development for their new headquarters
140 West Street - Hogan Lovells
140 West Street comprises 27 000m² of P-grade office space. It is housed in two, linked towers constructed on a landscaped podium. The development is situated diagonally opposite the Gautrain Station and directly opposite the entrance to the Michelangelo Hotel, Sandton City and Nelson Mandela Square. This office space offers 1400 parking bays within its 8 basements, 7 of which are below ground. The project consists of a 10-storey North Tower and 14-storey South Tower which will be targeting a 4-5 Star Green Star Rating, houses Hogan Lovells in approximately 50% of the building, along with other tenants.
Illovo Point is a 15 750 m² office and retail development currently under construction on the highest part of Illovo, Johannesburg. It commands majestic views over Sandton and the City. This development was sold out in FWJK's Co-Development at cost methodology to both end users and speculators who were drawn in by the significant discount to market prices which this project offered. Illovo Point's striking architecture and high quality finishes will ensure another fine investment for FWJK
16 Fredman Drive
16 Fredman is a sectional title office redevelopment located in the heart of Sandton Central. Units are still available for purchase or lease. National property developer FWJK Developments have been appointed by current joint owners, Redefine Properties and Zenprop Property Holdings, to redevelop the existing 22 000m² office block at the corner of Fredman Drive and West street. The A-Grade building which used to be occupied by conglomerate Discovery Health will be sectionalised and a range of office suite sizes made available to the public for purchase at R27 500/m².
Nedbank / Legacy Building
The Legacy Group and Nedbank building is estimated to cost R2 billion, and will form the foundation for a new urban precinct in Sandton. It is being built on Maude Street - a short walk from Nelson Mandela Square, and its sister building, the Michaelangelo.
The above developments complement Sandton Central's full spectrum of office spaces from corporate headquarters and multi-tenant offices through to vibrant co-working spaces. All this is supported by an excellent variety of world-class retail, restaurant, hotel and residential amenities, as well as some of South Africa's best transport infrastructure for trains, buses, taxis, private vehicles, bikes, and pedestrians.
Sandton - Boom or Bust? Well that's up to the economy right? Either way, Sandton will always remain one of the major hotspots in South Africa's office landscape.
Office rental highlights
- Gross rental range - R125 - R280 per msq
- Annual escalation range - 8 - 10% p.a
- Deposit - 1 month for every year of rental
- Average lease term - 3 - 5 years
- The Marc
- The Leanardo
- The Central - Werksmans
- 129 Rivonia Road
- Kgoro Central
- Alice Lane
- Sandton Gate
- 92 Rivonia Road
- Advocates @2 Pybus
- Katherine Towers
- Northern Lights
- Old Mutual Emerging Markets
- 140 West Street - Hogan Lovells
- Illovo Point
- 16 Fredman Drive
Popular Offices to rent
- Sandton City Offices
- Nelson Mandela Square Offices
- Katherine and West
- Sinosteel Plaza
- The Atrium on 5th
- Sixty One Katherine
- 102 Rivonia
- The Place
- The Forum
- Fredman Towers
- Commerce Square
- Alice Lane
- 165 West Street
- 1 Protea Place
- Nedbank Building
- Shopping Centres
- Sandton City Shopping Centre
- Nelson Mandela Square
- Benmore Gardens Shopping Centre
- The Maslow
- Garden Court
- City Lodge
- The Capital
- Intercontinental Sandton Tower
- Holiday Inn
- Protea Hotel
- JB's Corner
- Ocean Basket
- Piccolo Mondo
- Hard Rock Cafe
- Slow in the City
- Gauteng Conference Facilites
- FNB Conference Facility
- Sandton Convention Centre
- Grayston Onramp via N1 highway
- Rivonia onramp via Rivonia Road
- Corlett Drive via Rivonia Road
Author: Grant Williams