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Cape Town’s Foreshore is set for another premium office building, as the area continues its impressive transformation. Pier Place, which is due to open to new tenants between April and June 2017, has been fully redeveloped for the 21st century.

Green spaces and fresh air, a range of office configurations, and an ideal location have come together to create one of the New Year’s most exciting commercial properties. Let’s take a look at some of the features that set this development apart.

An office building that lives and breathes

One of the aims of Pier Place’s redevelopment was to create a green office space that fosters creativity and lets its users perform optimally.

Extensive use of greenery, including a roof garden and trees throughout the building, create an environment where the air is as fresh as the business ideas being refined inside Pier Place’s office suites.

A range of offices that create the ideal tenant mix

Pier Place offers two types of floor layouts, according to tenants’ requirements:

  • Single tenants can opt to rent an entire floor (926m2 of floorspace) – this is an ideal configuration for a growing business.
  • Companies that require less space can opt for a 193 – 215m2 office unit on one of the building’s shared floors. There are 4 offices per floor in this layout.

The different office sizes at Pier Place will be excellent for occupancy and ensure a varied mix of tenants, creating a vibrant business community within the development.

Conveniently located and fully-equipped

Pier Place stands in the heart of the Foreshore, with street access on Jetty Street. The building is around the corner from Long, Hans Strijdom and Heerengracht Streets, providing fast access to the Cape Town CBD, V&A Waterfront and highway onramps.

The building provides secure underground parking, with 2 to 3 bays per 100m2 of floor space and extra spaces available at R1 300 per month. For tenants and their employees who prefer to take the MyCiti bus to work, Pier Place is within easy walking distance from the nearest stop.

Premium office space, competitive rentals

With office space priced at R145/m2 plus VAT, Pier Place offers tenants excellent value along modern, premium surroundings.

To find out more about this exciting development and to arrange viewings of the office units we have in our portfolio, contact us today.

 

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Cape Town is regularly ranked in the global top 5 tourist cities, but how does the Mother City’s commercial property sector compare to other world-leading cities? In this article, we compare Cape Town to several established and up-and-coming cities to find out how it measures up.

Robust demand despite a slow economy

The slow growth of South Africa’s economy has been making headlines lately, but Cape Town has remained resilient. The Mother City’s commercial properties boast the lowest vacancy rate in the country at just 7.6%. This compares favourably to the 10% average across all South African cities.

From a global perspective, the low vacancy rate in Cape Town is also impressive compared to cities in other developing countries. While Beijing and Shanghai currently have vacancy rates lower than Cape Town’s, at 6% and 5% respectively, the vacancy rates in Delhi(10%), Bengaluru (16.1%) and Mexico City (19%) are all significantly higher.

Cape Town’s low vacancy rate indicates that demand for commercial property is solid in the city. While new buildings are opening every year, property owners seem to have little trouble finding eager tenants for their premises. This trend bodes well for commercial property developers in Cape Town as the city’s building boom shows no sign of slowing down anytime soon.

Excellent return on investment still lures buyers

Return on investment as measured by prime yield is currently 8% in Cape Town. This is significantly higher than the prime yield in many first-world cities and is also higher than most cities in China.

India’s three fastest-growing cities achieved higher prime yields than Cape Town last year, recording figures of between 9.5% and 10.5% last year as the country’s economy expanded by 7.1%. However, considering the muted growth in South Africa’s economy, the prime yield in Cape Town is extremely competitive compared to other BRICS nations.

The resilience of Cape Town’s commercial property sector is proof of the fact that investors have confidence in the local property market. From a long-term perspective, property investors are setting themselves up for excellent returns in a city that has seen itself transformed in recent years.

Cape Town Commercial Property in a Nutshell

The latest property statistics on Cape Town paint an excellent picture of the city’s commercial real estate sector. Here are some of the most important figures for 2016:

  • Vacancies fell to 7.6% – the lowest in South Africa
  • Prime gross rent has reached R180 per square metre per month
  • Grade A and P properties achieved a year-on-year growth rate of 8% last year
  • The city currently has 2 495 000 square meters of gross leasable area
  • Vacancies have remained constant despite a number of new buildings having opened
  • The City fares well internationally

Considering the economic challenges facing South Africa, Cape Town’s commercial property sector has managed to outperform many cities in developing nations in terms of prime yields, vacancies and annual growth. This positive trend, combined with an economic rebound, could set the stage for excellent long-term growth in the city.

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The ultra modern, mixed-use Century City Square is well set to be finished in the first half of 2016.  Designed for business and leisure, the Square features a brand new conference centre and hotel as well as the state of the art Apex office block, unrivalled in its views of Table Mountain and offering of nearby conveniences.

Affirming the status of Bridgeways Precinct as one of the ultimate places to work and conduct business in globally connected Cape Town, the Precinct is already home to the regional headquarters of large multinational corporates such as Phillip Morris and Chevron.  In addition to The Apex, development boasts The Annex, The Matrix, and Bridge Park East and West, totalling over 33 000 m2 of premium grade office space.

The exceptional facilities, infrastructure, and aesthetic architecture represent recognition from Century City Conference Centre and Hotel, property developers, and the commercial space industry of the long-term sustainability of business travel to the Western Cape.  Indeed, representatives of Century City Conference Centre and Hotel have been attending a number of local and international trade fairs; and have been inundated with interest, highlighting Cape Town’s global appeal as a work, travel, and business destination.

Image via vividarchitects.co.za

Development specifics within Bridgeways

Century City Square consists of the 900-seat Century City Conference Centre (with a flexible configuration offering a total capacity of 1200 over 20 venues), a 125-room hotel, restaurants and coffee shops, plus over 1300 parking bays.  Within easy walking distance are the Virgin Active gym, the Canal Walk shopping centre, the MyCiTi bus station, and the Century City train station.  These amenities support commercial space in:

  • The Annex: 4500 m2 of office space over four floors above the ground floor conference centre.
  • The Matrix, a mixed use building with ground floor retail and exhibition space, three storeys of offices totalling 3000 m2, and 51 residential apartments over a further three storeys.
  • The Apex, the largest with 7900 m2 of office space over seven levels plus ground floor eateries spilling out onto the square.  Thomson Reuters have secured the first 3 floors leaving 4 floors of 1 128m² available TO LET.

Both the Square and adjacent Bridge Park benefit directly from newly dusted infrastructure projects totalling more than R130million – the construction of R45million of roads and canals in the Bridgeways Precinct; an R18million upgrade of Sable Road; and the R35million MyCiTi station – all of which significantly ease the flow of traffic.

A further point of interest is the awarding of a 5-star Green Star rating (SA Office v1 Design) to the Bridge Park office complex by the Green Building Council of South Africa.  This brings to five the number of 5-Star Green Star-rated buildings in Century City, alongside Chevron, The Business Centre, Philip Morris (all situated within Bridgeways), and Aurecon; while Century City Square itself is accredited by the Green Building Council for a pioneering Green Star mixed-use rating.  These seals of approval create excellent investment or rental prospects as the office blocks become more attractive places to work, improve the client experience, and lower utility costs.  Another reason ABSA have chosen to make it their home after consolidating all their Cape Town offices into Bridgepark (18 000m²) within the Bridgeways precinct.

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With full renovations wrapped up at the end of 2015, Touchstone House provides 15 floors of prime office space located on Bree Street just opposite the Portside, the CBD’s flagship tower.  Stylishly fusing old and modern, the building offers high-up views over the city and has a range of sectional titles for letting or sale, from 79m2 office suites to entire floors.  Eight parking levels are available, for a high-end ratio of 3 bays per 100m2 of office space; while ground level retail adds a dynamic atmosphere to the House.

Cape Town Central

Photograph from travelscor.com

Touchstone House is situated right by the public road network and within walking distance of public transport stations.  Close to cosmopolitan and vibrant De Waterkant, the building falls within the Urban Development Zone (UDZ) which allows tax benefits for owner-occupiers and investors alike.

KPMG Place

This new office block is located on Christiaan Barnard Street in the CBD’s Culemborg legal and financial services district.  Being adjacent to the N1 and N2 highways and thus easily accessible, KPMG Place consists of eleven office levels, ten above-ground parking levels and three below ground, for a ratio of three bays per 100m2 of office space.

The client-engaging ground level features retail space and a showroom, while the top floor comprises an entertainment area, cafeteria, and 360-degree views of the fair Cape.  Accounting multinational and anchor firm KPMG is set to occupy 7000 of the 19000m2 of  A+ grade office space next year, with a managing partner at the firm explaining that the ‘green’ measures incorporated into the building design had been a deciding factor in KPMG’s relocation to the tower block.  With electricity and water savings offered by light motion sensors, heat-resistance glazing, and the elimination of geysers throughout the building, KPMG Place has one of the lowest per square metre water and electricity consumption rates in Cape Town.

The Cape Town Central City Improvement District (CCID) has noted that the new office building is part of a revamp of the Foreshore area.  Of the more than R7bn being invested in the CBD between 2014 and 2017, more than R5bn has been allotted solely for the Foreshore (covering amongst others the new Netcare Christiaan Barnard Memorial Hospital and CTICC expansion).  This activity points to extensive infrastructure upgrades and commercial property opportunities in the area in the near future, and great deals with existing upgrades to landmark office space such as the Standard Bank Towers.

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