The focus is on mixed-use
growth and, therefore, the demand for office space.
In Cape Town, a number of new office developments – or mixed-use developments incorporating office space – are already underway, or will soon be. Baker Street Properties’ Dave Russel says those in the city’s main commercial nodes will continue the focus on lifestyle and mixed-use properties.
“In line with the City of Cape Town’s socio-economic development plan on densification, developers are focusing on mixeduse property solutions evident in new sectional title apartment, office and retail offerings.”
In a recent report, Russell says the new developments planned for 2018 include:
Cape Town CBD: The Ducat Towers, 35 on Lower Long, 117 on Strand.
Woodstock: The Iron Works, WEX 1, The Aspeling.
Southern Suburbs: Werdmuller Centre, Draper on Main, Old Marshall House.
Century City: Sable Park, Manhattan Corner, The Axis.
Northern Suburbs: Danena Office Park, Quarry Hill.
According to Sapoa, 94% of the country’s development activity continues to be concentrated in Gauteng office nodes. At 26.3%, Sandton has the most development activity underway, followed by Rosebank and Waterfall at 19% and 7.9% respectively. Behind these nodes is Durban’s Umhlanga with 9.6% and Cape Town CBD at 6.8%. The eighth highest development activity by node is Century City, with 3% of the national total.
By looking at current vacancy rates by node and comparing these to the amount of new development, the report also lists the nodes most likely to come under near-term rental pressure. Claremont, the CBD, and Central City are on the list in positions six, seven, and eight. This list is topped by Rosebank, Waterfall, Sandton, Umhlanga/La Lucia and Midrand.
“On the other side of the pressure spectrum, popular nodes such as the V&A Waterfront, Rondebosch/Newlands and the Central Node – Pinelands and the Black River parkway precinct – all have a critical mass of large, longterm occupiers and limited opportunities for greenfield developments which should underpin short- to medium-term occupancy levels and rental growth.”