The construction of an office park being developed on the corner of Park Lane and Alexander Road adjoining Vincent Pallotti Hospital on the edge of Pinelands, Cape Town, is nearing completion.
The development, comprising three separate blocks totaling 7,000sq m plus 280 parking bays, is either for sale or to let in units from 150sq m upwards.
“At a time when office rentals are raising rapidly, it offers an excellent opportunity for office users wishing to stabilise their rentals,” says Colin Murray, a director of Baker Street Properties.
“Building costs have been growing at an alarming rate and coupled with the scarcity of commercially zoned land, are driving prices and rentals higher. A similar situation in the early 1980’s saw rentals double overnight and then treble in the space of three years.”
According to Murray the development is located just off the N2 freeway, and it is also close to Pinelands Station making it ideal for rail commuters. Importantly, it is located on the southern side of the Black River Parkway/N1 freeway interchange meaning the residents of the southern suburbs will not have to endure the massive traffic queues gaining access to the N1.
This business node includes office tenants such as Medscheme, MTN, Engen and Global Edge Technology. Old Mutual, which has their head office on Jan Smuts Avenue nearby, is the largest property owner by far.
Park Lane will provide “A” grade office accommodation set in a landscaped environment. The site will feature extensive paved areas, water fountains and outdoor seating/leisure areas.
The buildings will be finished to “A” grade specification and include double volume entrance foyers with marble clad entrance flooring. The exterior finishes will include low maintenance aluminum windows and a Mediterranean style clay tile roof. Parking will be provided at four bays per 100sq m, the majority of which will be located underground.
“The entire site will have security fencing and the access points will be monitored by 24-hour security as well as CCTV camera surveillance.
“Priced at R11,800/sq m plus VAT plus parking, the development compares favourably with similar developments in Tygervalley and Century City where prices of R12,500/sq m and R14k/sq m plus VAT are being asked. Similar developments presently at the planning stage for delivery in 2009 are estimated to be in the region of R16k/sq m to R18k/sq m plus VAT.
“Commencing leasing rental is R115/sq m gross, plus R650 per bay for undercover parking and R400 per bay for open parking (plus VAT).
The development is due for completion on 31 March 2008.