PROPERTY: Breathtaking Parking Costs
Recent Western Cape Business News
BREATHTAKING is the word, much over-worked, that promotion agents use to describe their clients’ Western Cape property developments, be they residential or commercial.
One therefore becomes very used to promotional material describing an office block with ‘breathtaking views of Table Mountain’, ‘the Atlantic’, or both. The Winelands too evokes similar, thrilling, emotions.
They do this with good reason; to make the product sell or let as quickly as possible, often with a fine premium attached to it too.
What is truly breathtaking is the cost of parking in Cape Town’s CBD, usually in basements where there is nary a view of Table Mountain, not to speak of the Atlantic or the Winelands.
According to the latest Rode’s Report grade A+ bays in the V&A Portswood Ridge rent at around R1 400, at Granger Bay they fetch around R1 200 and in the CBD proper they rent at R1 100 per bay per month.
Both Pinelands and Century City come in at around R750 per bay per month.
Now compare this to the upper range in Gauteng; for similar grade parking rentals come in at R725 per month at the bespoke Melrose Arch and R500 in Bedfordview. Sandton’s CBD fetches R620 per bay per month. This is also even less than the cost of Cape Town’s under shade parking, where it sets you back
R1 000 per bay per month. Under shade parking at Melrose Arch goes for R250, according to Rode’s stats.
Comments Marius Basson, JHI director for the Western Cape: “The differences can be simply explained - it’s a function of supply and demand. There are insufficient bays in Cape Town’s CBD and its immediate environs.”
Cape Town is a relatively old city. So in days long gone by parking bay ratios were not prescribed by council, he says.
Sandton, for example, is much younger and could easily comply with a ratio of four parking bays for office space with a gross lettable area of 100 sq m.
Basson says the cost of parking is one compelling reason why businesses are increasingly considering the Northern Suburbs as a location. This is thanks to the abundance of parking at relatively affordable rates, with secure, covered parking realising a monthly rental of between R400 and R600 compared to R1 000 plus per month in Cape Town’s central city.
Office rentals too are relatively keener and the area has become popular for a broad cross-section of businesses, particularly those whose employees live in the area and are able to avoid major traffic congestion by working in the same locale.
Those motorists who daily travel at a snail’s pace to and from their offices in the CBD will have much time to ponder the above.
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