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The current political climate may well damper
future growth in the Johannesburg office market with rental growth slowing
down. A bulk of new prime node stock is expected in 2017 which could exert
pressure on rentals and may create short-term vacancies. However, evidence has
proven that prime nodes can be expected to perform satisfactorily, even during
the most feverish macroeconomic conditions and prevailing political
instability. This is mainly due to the consistent healthy demand for high
quality accommodation witnessed in prime nodes. Investors and occupiers will be
pragmatic when making decisions, especially occupiers seeking more flexibility
in lease terms.
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20 June 2017