PROPERTY: Change To The Cape Town Office Survey
Recent Western Cape Business News
When assessing the latest SAPOA Office Vacancy Survey figures for the 3rd Quarter of 2012 in Cape Town, certain changes to the survey must be taken into consideration.
For the first time in over 12 years the SAPOA Office Vacancy Survey has included ‘C’ grade vacancy figures in the survey. This is in response to requests made by some SAPOA members who were of the opinion that this information should be included, according to Dave Russell, a director of Baker Street Properties.
“The ‘C’ grade vacancies have initially been included in the nodes of Bellville, Claremont and the Cape Town CBD. This has had a significant impact on the Claremont and CBD figures. While the combined total vacancies in Bellville remain virtually the same as the previous quarter at 8,6%, the vacancy figures for Claremont and the Cape Town CBD are now 31% and 14,7% respectively.”
Russell adds that if the ‘C’ grade vacancies had been excluded as per previous surveys, the total Claremont vacancies would be 22,6% and the Cape Town CBD almost the same as the previous quarter at 11,9%. The massive 32.7% vacancy in ‘C’ grade offices in the CBD is responsible for the sudden increase in the overall CBD figures.
“But it is not all bad news for the office sector. Vacancies in the other 4 nodes surveyed are slightly down on the previous quarter. The combined node of Rondebosch/Newlands now has a vacancy of 12,6%, while Century City continues to reduce and has moved from 10.2% a year ago to 6,3% today. Vacancies in both Pinelands and the V&A Waterfront remain extremely low at 2,9% and 1,7% respectively,” says Russell.
Russell concludes, “In our opinion, rentals in the oversupplied sector of the market will remain flat until there is a significant decrease in vacancies, however, this will not happen until there is greater business confidence on the back of increased economic growth. It is therefore expected that present market conditions will remain for some time to come.
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