New office model is more tenant-centric
leasing director of Abland, the developer behind Loftus Park and Sandton Gate in Johannesburg.
He says in the past mixed-use precincts focused mainly on the commercial/office component with retail and residential often added as an afterthought. “Tenants nowadays require an all-encompassing offering including everything from offices and convenience retail to housing, restaurants, gyms and hotels — all within walking distance in a safe, pedestrianised node.”
Developers are starting to broaden their offering even further to include medical amenities, schools, crèches and parks. Coworking or flex office spaces are also being added to the mix to further appeal to a new generation of urban dweller.
Silverman believes traffic congestion has been a major driver of increased demand for fully integrated work, live and play precincts. “Traffic has become an issue everywhere, especially if there’s load-shedding. So people want to live closer to where they work. There’s also a trend towards more compact and higher density living, which mixed-use developments increasingly cater to.’’
It’s all about convenience today. “Increased traffic means it’s no longer easy to leave the office to go out for lunch, which means office tenants want to be where they can walk to restaurants, shops, gyms and green spaces to relax. It’s also vital that mixed-use developments are within reach of public transport,” says Silverman.
Grapnel Property Group MD Justin Bass agrees that convenience is the key attraction: “All the amenities are in one place, so people have access to goods and services within walking distance, making their daily life and work environment more productive.’’
Bass says the mixed-use model has evolved in that it is no longer a stand-alone development in a decentralised location as was often the case when the concept was first introduced to SA. “There is a regeneration of existing urban nodes into mixed-use precincts.’’
He refers to Rosebank in Johannesburg as an example, saying Rosebank, which has experienced a number of new, upmarket sectional title residential developments over the past five years, is developing into one of Johannesburg’s most vibrant mixed-use hubs.
It also makes sense for developers and landlords to be part of a broader mixed-use precinct from a return on investment point of view. Redefine Properties commercial asset manager Pieter Strydom says mixed-use developments offer the benefit of property values given that they tend to attract more tenant demand than stand-alone buildings in decentralised nodes. Redefine is one of the biggest property owners in SA and responsible for Sandton mixed-use development Alice Lane, among others.
“Companies are increasingly seeing the value of offering their employees easy access to retail and other ancillary services. With less time spent in traffic, the indirect implication is an increase in productivity and improvement in the quality of life,’’ says Strydom.
In Cape Town, the foreshore and Roggebaai areas are also experiencing an influx of money to create more mixed-use spaces.
Amdec Group, the company that developed Joburg’s Melrose Arch and the Yacht Club at the V&A Waterfront, last year launched the multibillion rand Harbour Arch on the foreshore.
Amdec Group MD Nicholas Stopforth says Cape Town’s foreshore lends itself well to regeneration through mixed-use development. “The area is more affordable per square metre than the Waterfront. It enjoys incredible accessibility with roads, taxis and pedestrian walkways linking directly with the V&A Waterfront, the Cape Town International Convention Centre, and the CBD.’’
One of the key challenges faced by most mixed-use developers, especially in the inner cities, is to create more green urban spaces and less concrete jungle. Stopforth says Amdec is constantly striving for unique solutions to incorporate more eco-friendly and sustainable technologies into its developments.