Cape Town Commercial Property Trends 2014
Property specialists early this year observed strong new interest in commercial property investment within the Greater Cape Town area. The current year has been marked by the completion of prominent new developments in the Cape Town CBD, V&A Waterfront, Century City, and Tygervalley. The case for the past few months, however, has been a shortage of stock in high-demand areas such as Marconi Beam, Montague or Killarney Gardens and Paarden Eiland for industrial space; and Century City, Milnerton, the CBD and Claremont for office space. The lease for industrial space now ranges from R38 to R65 per m2; while office space is renting from R70 per m2, topping at R180 in high-demand areas. Within Greater Cape Town, rent is currently increasing at 6-8% per annum.
Century City has proven to be an attractive location. Key attractions comprise the locale’s high-speed internet network; a clean office environment; convenient transport; access to a range of facilities; and excellent security. Another commercial property hotspot, the CBD this year has seen a series of corporate headquarters relocate from older premises to new developments. The 2012 State of Cape Town Central City (SCTCCA) Report provides valuable insights on the advantages of being based in the district.
- 88% of businesses indicated MyCiTi bus transport makes the CBD more accessible
- 93% say they are likely to remain in the CBD
- 83% view Cape Town CBD as the safest central city in the country
- 34% of CBD-based businesses are likely to expand their operations in the near future
- 77.1% of pedestrians use public transport to come into the city
- The CBD offers over 4600 beds in 57 hotels, 8 of which are five-star
Investors and prospective office space occupants can also capitalise on the City of Cape Town’s plans to rezone the area around the Greenpoint Stadium for commercial activities. The stadium itself has been estimated to have about 20 000 m2 of business space available for office, letting, retail, and mixed-use purposes.
Stay tuned for part 2 next week.