The commercial property sector has seen its ups and downs over the past few years as South Africa’s economy and political landscape struggle to recover from the years of state capture.
Despite the challenges of the day, however, entrepreneurs in the Western Cape are proving to be extremely resilient. In the face of a slow economy, small businesses continue to open across Cape Town, with the tourism, hospitality, retail and tech sectors alive with activity.
Resilient and innovative entrepreneurs can always be relied on to start businesses – and most businesses need physical premises. That’s excellent news for commercial property in Cape Town.
Let’s take a look at the current entrepreneurship trend in more detail from a Cape Town commercial property perspective.
The Mother City’s Evergreen Entrepreneurs
Cape Town often experiences four seasons in a day, and come rain or shine – or wind for that matter – the Mother City’s entrepreneurs are always ready for business.
From Fair Trade coffee shops to cutting-edge restaurants and tech startups that have put Cape Town on the map internationally, the sheer number and variety of SMEs in the city is impressive.
This combination of business-oriented thinking and resilience has served Cape Town well over the past few years, as the city’s economic microclimate has provided a safe haven for business owners to forge ahead in building their dreams.
Proof of the city’s business success can be seen in the demand for commercial property, and the number of new developments that have been completed in the CBD, Century City Bridgewater development and other parts of Cape Town.
As a steady supply of office space opens up to serve the growing entrepreneurial community, things are looking up for the commercial property sector.
A great selection of commercial spaces at competitive prices
One of the biggest challenges that an expanding SME faces is securing commercial space that suits its needs, suits its budget, and allows room for the business to expand without having to relocate.
The commercial property trend continues to shift from large units occupied by corporates to smaller office space designed with entrepreneurs in mind. Units of 200 square metres or less are becoming increasingly common in Cape Town, making it more affordable for SMEs to lease their own dedicated office space.
For business owners, there has never been a better selection of premises out there.
SME owners looking to expand their operations may be wondering what the average price of business premises currently is. Here are some guidelines for commercial property tenants.
- Industrial properties in and around Cape Town tend to be let at around R75 per square metre.
- Commercial property in areas like Sea Point, Blouberg and the Southern Suburbs can probably be secured for around R100 per square metre.
- New developments in the CBD, Century City and Clairmont – currently considered the most desirable locations for commercial property – may fetch upwards of R150 per square metre. R200 per square metre or more is not unusual for the newest and most in-demand developments.
Looking for Commercial Property Cape Town? Give us a call
If your SME is rearing to grow, finding the ideal commercial property to suit your needs is essential. Our area experts are on hand to assist you at every step of the rental process. Contact the Commercial Space team today.