five years , with a total valuation close to R32bn by 2020 across 26 projects . And since January 2016 , we ’ ve heard of at least another seven development projects coming on board . We do not yet know what they will add to the R32bn , but it does illustrate how intensively the CBD is changing – and across its entire footprint , from the Foreshore to the older part of the CBD .
Another large transformer of the economic landscape of the CBD is the rollout of the City ’ s own fibre-optic broadband network . With R1.7 billion being spent by the City throughout the metro to connect its own buildings as well as those of the Western Cape Government , the network is now robust and extensive enough for the City to install cables to private buildings . With a pilot project being rolled out by the City ’ s Telecommunications Branch in the Cape Town CBD , to date 50 private buildings had already been connected . The project now also incorporated the involvement of the CCID , who were assisting the City to make contact with the various private property owners with premises in the area .
Another interesting game changer in the CBD , had been the rapid update over the past year of vacant commercial space . However , by the final quarter of 2015 , commercial vacancies had decreased dramatically to 10 %, on average .
“ We ’ ve obviously identified a very real need for more affordable housing , but we understand that this demand is seldom met only by private development . For this to happen , there needs to be public-private partnerships on land currently owned by government . And interestingly , we still have quite a bit of this in the CBD and right on its borders .”
Chang notes that business collaboration is going to be the lifeblood of 21st century commerce , which is particularly important for companies operating in close quarters such as a CBD .
“ We live in an on-demand economy , which is only going to get more so in future and it ’ s no longer big companies versus small companies ; it ’ s about how fast you can move and the user experience memory you leave behind .”
Chang also advises developers currently planning new residential and commercial buildings to include drone landing pads in their designs , because these will become an everyday feature of the landscape within a few short years . Currently high congestion traffic zones such as the CBD could also conceivably become free of private cars in future , replaced by technologydriven services such as Uber and smartphonecontrolled car-sharing .
RESOURCES bartlettcommunications
www . reimag . co . za JULY 2016 SA Real Estate Investor 43