Of­fice space go­ing beg­ging in city

Sapoa sur­vey con­firms trend of steadily in­creas­ing va­cancy rate across Cape Town

Weekend Argus (Saturday Edition) - - PROPERTY -

THE LAST SA Prop­erty Own­ers As­so­ci­a­tion (Sapoa) of­fice va­cancy sur­vey for 2011 con­firms the on­go­ing trend of in­creas­ing va­can­cies in Cape Town, with six of the seven nodes in­cluded in the sur­vey show­ing in­creases on the pre­vi­ous quar­ter’s fig­ures.

Dave Rus­sell, a di­rec­tor of Baker Street Prop­er­ties, says although most of the in­creases are mar­ginal, they are a con­fir­ma­tion of a con­tin­u­ing trend that should be of con­cern to land­lords.

“In the Cape Town CBD the com­bined va­cancy rate of Premier, A- and B-grade of­fices is now at 10.5 per­cent. At the same time a year ago the va­cancy rate was 9.7 per­cent. In the south­ern sub­urbs we now have a com­bined va­cancy rate of 13.7 per­cent in Clare­mont and 7.3 per­cent in the Ron­de­bosch/new­lands node.

“In the Tyger­berg sub­urbs the Bel­lville va­cancy av­er­age is now 9.4 per­cent whereas a year ago it was around 6 per­cent. It is en­cour­ag­ing to note that Cent ury Ci t y va­can­cies have re­duced over the past year from 10.5 per­cent to 8.8 per­cent.

“Pinelands also seems to be buck­ing the trend and presently has a va­cancy rate of 3.4 per­cent, although this is one of the smaller of­fice nodes. For the pop­u­lar V&A Wa­ter­front the fig­ure is 6.9 per­cent, and the new Allan Gray of­fice com­plex is un­der con­struc­tion in the Clock Tower precinct.”

Rus­sell says there have not been many new of­fice de­vel­op­ments in the Cape Town CBD for some years. How­ever, con-

‘At­trac­tive op­por­tu­ni­ties in present mar­ket con­di­tions’

struc­tion has started on the new Port­side build­ing, a joint ini­tia­tive be­tween Old Mu­tual and Firstrand Bank, which will pro­vide 52 000m² of of­fice space. Port­side will be­come the provin­cial head­quar­ters for Firstrand’s three di­vi­sions – FNB, RMB and Wes­bank – and Old Mu­tual will of­fer an additional 25 000m² of prime space for leas­ing to cor­po­rate and re­tail tenants, which will be avail­able from early 2014.

“One of the fac­tors in­flu­enc- ing in­ter­est in the CBD and the city pe­riph­ery is the avail­abil­ity of pub­lic trans­port,” says Rus­sell.

“The new IRT sys­tem gets staff to and from work more quickly and ef­fi­ciently and has proved to be very pop­u­lar. The fur­ther ex­pan­sion of this ser­vice will con­trib­ute to the con­tin­ued in­ter­est in the city for fu­ture de­vel­op­ment.

“Although the eco­nomic down­turn has been re­spon­si­ble for the in­creas­ing va­can­cies, it has cre­ated some at­trac­tive op­por­tu­ni­ties for of­fice tenants who are in a po­si­tion to take ad­van­tage of present mar­ket con­di­tions.

“As a prop­erty com­pany mar­ket­ing vir­tu­ally all of the va­cant of­fice space in Cape Town, both leas­ing and sales, we have seen many com­pa­nies that shelved their ex­pan­sion or re­lo­ca­tion plans sev­eral years ago now com­ing to the mar­ket tak­ing ad­van­tage of the con­ces­sions of­fered by land­lords.

“We en­cour­age tenants to po­si­tion them­selves ac­cord­ingly and use this op­por­tu­nity to take a long-term po­si­tion on favourable lease terms.”

Visit www.baker-street.co.za or call 021 461 1660.

GO­ING UP: An artist’s im­pres­sion of the new Allan Gray head­quar­ters in the V&A Wa­ter­front Clock­tower precinct.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.