As demand grows for central business district properties in major cities in Zimbabwe, the profile for typical tenants is changing.
“The future outlook suggests an increased redistribution of tenants, with more client interfacing tenants filling up CBD retail while less front office orientated tenants fill up the suburban office parks as more players in the respective sector enter the market,” according to a report from Old Mutual Investment Group.
Demand has increased since 2009, improving return for property market operators while increasing rental rates, according to SA Commercial Prop News. In response, some tenants have left the CBD, searching for better rental rates in the suburbs.
WPC News | Zimbabwe Commercial Property MarketBut businesses that require “interface with the public” have stayed downtown, the paper reports.
High rentals in CBD retail space is backed by increased demand in part “due to macroeconomic recovery strides supporting increased consumer spending,” Old Mutual said in a release, noting the retail property sector is showing the most promising growth.
With higher interest for both CBD retail and suburban office properties, strong returns are expected to continue.