Commercial Guidebook | Real Estate Investor Magazine Commercial Handbook 2013 | Page 42

OFFICE TRENDS BY ANGIE REDMOND Cape Town Creates Aesthetic appeal for offices T otal vacancy in the CBD of Cape Town for office space is in line with the previous quarter’s f igures at 12.8%, along with Claremont 21%, Bellville 7.9%, Century City 5.8%, Rondebosch/Newlands 9.3%, Pinelands 3.3% and the V & A Waterfront 1.2% according to the SAPOA office vacancy survey. One thing which sets apart office spaces from one another is the aesthetic appeal they ofer to prospective tenants. Cape Town has shown that the aesthetics of your office can, in fact, have a large impact on their vacancy rates. Dave Russell, a director of Baker Street Properties, comments, “It is important to note that the buildings surveyed underwent a re-grading at the beginning of the year, resulting in a noticeable change to the CBD figures, where the total A grade area decreased and the B grade increased. The subsequent reduction in the A grade and increase in the B grade vacancy should not be taken as a market trend, but merely a result of the re-grading. Top quality buildings in all nodes continue to enjoy little or no vacancies 40 Commercial Handbook 2013 with the bulk of the vacancies located in secondary buildings. It is in this secondary space where the landlords compete for tenants, that very favourable lease terms are being achieved. Interest and activity in prime located commercial property in Cape Town’s vibrant Green Point and De Waterkant areas continues to gather momentum, says Selwyn Sharon, leasing, sales and investment broker for JHI Properties. “Upmarket, trendy space for off ice and retail accommodation is in demand in prime locations within these areas. This node has become a fashionable and sophisticated, highly desirable ‘lifestyle’-type destination to work in, with 15 coffee shops within a five minute walk, including vibey venues such as Origin Coffee Roasting and Truth Coffee Shop, as well as the Cape Quarter lifestyle shopping centre - all right on your doorstep,” says Sharon. Currently, rental rates for upmarket office accommodation in Green Point and the fringe of the city range from around R110 to R180 a square metre. Looking back over the past two decades, it’s evident that requirements for office accommodation have www.reimag.co.za