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With businesses under ongoing financial pressure, commercial property owners are feeling the pinch too.

Rising vacancy levels have been plaguing commercial property owners for more than a year as businesses feel the pressure of ongoing economic decline. Some people even believe “this is one of the toughest property sector environments in two decades”, says Gregg Huntingford, chief executive of Spire Property Management.

South African Property Owners’ Association (Sapoa) statistics showed the national office vacancy level to be at 11% during the first three months of the year which, although it was a slight improvement of 0.1%, was also on the back of declining rental growth. “[This is] indicative of the level of excess stock still present in the market,” the report says, also stating that only eight of the past 35 quarters have seen improvements in the level of the overall office occupancy rate.”

The country’s industrial and retail property rates were 3.6% and 4.2% respectively as at December 2018, Sapoa research reveals. Even though the economy is expected to start improving by the end of the year, the challenge of commercial vacancies will not just disappear.

Huntingford advises landlords to adapt and come up with “unique and different” approaches to reverse the rising vacancy trend. One solution could be found in rental structuring, which he says “speaks to the heart of any business owner”.

Read more: Tough environment persists for commericial property