adminSithandazile Moyo Business Reporter
THE economic challenges prevailing in the country have affected the viability of the property sector with some buildings in Bulawayo having gone for almost a year without tenants.
Estate Agents Council (EAC) chairperson Oswald Nyakunika told Business Chronicle that about 10 percent of the industrial buildings in the city were vacant as a result of industries closing down.
Africa House, located in the Central Business District, has been vacant for the past 10 months after the National Railways of Zimbabwe moved out of the premises to cut costs.
Knight Frank has continuously flighted advertisements looking for quality tenants to occupy the nine-storey building which has a total lettable space of 55,705 square metres on three wings.
“The void rate is hovering at around 10 percent largely because of empty industrial buildings and not so much shops and offices as most industries have closed down,” Nyakunika said.
He said there were fewer shops and offices that were vacant in the city as most entrepreneurs were using these as working spaces.
Nyakunika said most buildings had remained vacant for long as there was no demand for space and most tenants did not have the capacity to pay rentals.
“Generally there is high demand for space but there is no effective demand that is backed by the ability to pay high rates hence there is a need to take time and get quality tenants,” he said.
He said this was the trend everywhere as property owners could not offer space to tenants who would not be able to pay hence most buildings were vacant.
Nyakunika said there was a need for government to come up with investor friendly policies that would ensure that most businesses and industries re-open and the vacant spaces are fully utilised.
“The current cash and liquidity crisis has caused many businesses to close down and there is serious deflation. There is a need for government to come up with investor friendly policies,” he said.
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