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East Rand Commercial Property

General and Location

If you’re looking for commercial property in East Rand, you’ll find that this part of Gauteng has a lot to offer. Lying just East of Johannesburg, the area is bounded by the N3 on the West and Allandale Road in the North.



Major roads in the area are the R21, N12 and N17. These are very busy roads due to their convergence on O.R. Tambo airport and their access to the Eastern Reaches of Gauteng.

In addition, they have heavy truck traffic due to transportation to and from the heavy industrial areas of Kempton Park (Barbara Road), Boksburg (Kraft Road, Rondebult, Atlas and Tom Jones), Jet Park and Benoni. Longmeadow and Linbro Park, accessed via the M1 or the N3 heading East off the Marlboro off ramp have experienced unprecedented growth. The areas of Tunney, Meadowdale, Elandsfontein, Spartan, Sebenza and Isando are currently enjoying brown-fields redevelopment with the large property funds investing heavily into upkeep and infrastructure.

In the Bruma/Bedfordview area, Eastgate shopping centre is the largest shopping centre with Bedfordview hosting several strip malls and smaller shopping centres. Bedfordview is the main office node of the Eastern Industrial areas. The Nicol Hotel in Bedfordview is the most notable. Bedfordview borders the heavy industrial nodes of Germiston. Germiston has a stable power grid with good power resources which is characteristic of the industrial nodes in the East. Jet Park has experienced high demand for large warehousing and manufacturing space.

Boksburg hosts the East Rand Mall which boasts full occupancy with a notable waiting list for space. The strip malls in the surrounding areas also experience very low vacancies. Atlas Road in Benoni leads to the heavy industrial node of Anderbolt which has also experienced high demand over the last five years.

Regional Development Framework

The Eastern Industrial areas are predominantly developed with few pockets of land available for new developments. Buying land, zoned or unzoned, for landbanking makes sense as demand for new developments with proximity to O.R. Tambo airport is set to continue.

Residential Viewpoint

Bedfordview offers on average residential properties of the highest value with the Greenstone/Founders Hill residential suburbs catering to the upper middle classes. Remaining residential nodes cater for the middle and lower income groups, predominantly the labour forces for the surrounding businesses.

Office Nodes

Offices in East Rand, particularly in Bedfordview, are predominantly B grade, in a good state of repair and receive continual upgrading and maintenance. Few A grade offices exist, mainly due to a lack of development space. There are three large office blocks, currently single tenanted becoming available in the course of next year, totalling 10 000m2. This is bound to affect the office rental market (as it is a niche mode in the East) unless the excess space gets absorbed by re-signing single tenant occupiers for these large buildings.

Currently R/m2 varies from between R85/m2 and R120/m2. Recent placements suggest that R120/m2 is acceptable to the market with demand for A grade offices outstripping that of B grade.

Industrial Nodes

Vacancy rates are very low in the Industrial nodes with Growthpoint showing less than 3% vacancy on their portfolio holding in the East. Vacancies are mainly smaller industrial spaces with functional obsolescence of various degrees hampering their leasing. Demand is high for property of any size for sale and yields are reflecting this with new developments selling at up to 8.5% yields.

Retail Nodes

If you’re searching for commercial property to let in East Rand, you’ll find that retail nodes are mostly fully tenanted, especially around the East Rand mall in Boksburg. Retail vacancies are mainly in smaller, older malls that are in need of redevelopment. These smaller centres can be bought for yields allowing a lot of upside, (approximately 13 to 14%) but a budget is needed for refurbishment, marketing and re-tenanting.

Growth Areas

Growth areas are mainly in around Tunney, Meadowdale and Elandsfontein as there is still development land available. The main developer in these areas is by Growthpoint and Investec, both of whom have significant landholdings.

The city is allowing for fast track rezoning of agricultural ground for industrial applications especially around the Kempton Park and Pomona areas. Development is slowed by a lack of power delivery to new industrial areas which allows for affordability of land if holding costs are not too prohibitive.


Trends are for mega warehouses and distribution centres in the area. Subsidiary industries are taking up smaller spaces surrounding the large companies offering support services of various kinds.

For further information on renting commercial property in East Rand, please call Ren Prop today.

Commercial Areas

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