While a few leases are being tied up towards the end of the year, Cape Town still has plenty vacant space making it a tenants market and allowing for some attractive long term rentals!
2012 has come and gone, and while there was movement in the market and deals being closed; there was not enough to warrant any excitement amongst the landlords just yet.
Overseas clients with call centre operations have been showing particular interest in the Cape Town office market, making claims that the staff in Cape Town are far superior and more adequate to call centre operations and increasing profits for the company.
This said, the office letting market in Cape town has been tough and with rates, levies and electricity increasing so much over the last year it really has made it hard for the commercial property owners to negotiate rentals.
An interesting statistic in that 31 000m² of vacant space managed by OLD MUTUAL’s property division was let by brokers during 2012 in Cape Town. This consisted of 22 deals with a total lease value of above R 75 Million. The commission paid to brokers was around R 3 Million.
This proves that brokers continue to make themselves useful and are certainly beneficial to the landlords in assisting them with letting of office and warehouse space in the Cape Town area.
Commercial Property in Cape Town will be interesting to watch in 2013 so keep coming back to see the progress.
Have a good festive season and all the best for 2013!
Yours in property,
COMMERCIAL SPACE TEAM