The Cape Town CBD has seen tremendous investment in new buildings over the past decade, with some of the older buildings in town falling out of favour with tenants – but not for long.
With a vacancy rate below 7% – the lowest of any SA city – demand for commercial property in the CBD remains very strong. This fact, coupled with a shortage of refurbished B and C grade office space, has sparked a buying spree by innovative developers.
Breathing new life into the CBD’s older buildings
Older buildings which were once overlooked as tenants headed to brand-new developments are being snapped up by developers. With plans to repurpose the city’s ageing commercial buildings as shared office spaces and regional offices for prominent clients, a new generation of developers is gearing up to complete the CBD’s rebirth as a modern, vibrant urban space.
Many older buildings in the centre of town have excellent structural features, commanding mountain and sea views, and easy access to some of the CBD’s most popular dining and entertainment offerings.
Great value for developers, great news for tenants
Developers who recognise the value in older buildings and look beyond the structure’s superficial appearance may find themselves with extremely valuable assets in just a few years from now.
For tenants, the redevelopment of older office buildings in Cape Town is good news all round. As the variety and quality of commercial spaces in the CBD continue to improve, a new wave of tenants will soon be drawn to the area.
A prime property opportunity for “semigrants” to Cape Town
The Mother City remains an extremely popular destination for South Africans from other provinces (especially Gauteng) and it’s not just retirees who are relocating to the Cape.
As working-age professionals relocate and establish businesses in Cape Town, the ability to provide quality B and C grade office space will become a priority for the city’s commercial property sector.
This presents an exciting opportunity to new developers, as well as established agents and property marketers in the CBD.
We will continue to monitor this trending development and update our office space portfolio to include the best repurposed buildings in the CBD.
To learn more about our sale and rental portfolios, contact our team of area specialists today.