EMPTY PUBLIC SPACES SET FOR AN OVERHAUL
Category Commerical Property News
Government has unveiled a strategy for attracting government departments back to abandoned buildings by signing long-term lease agreements with private companies, according to Patricia de Lille (Minister of Public Works and Infrastructure). This will refurbish and repurpose buildings over a lease period of 15 to 20 years.
De Lille recently announced her department would pursue the project under its recently approved "Refurbish, Operate and Transfer Strategy". This will help allocating part of the R5-billion government spend each year with private landlords into public buildings. She did acknowledge that many of the buildings in her departments portfolio were in a poor state of repair and were racking up ongoing security costs without generating any income.
"In order to reduce the cost of letting in buildings from the private sector for use by government departments, we are now going to use more government buildings for government departments" she said. A proof-of-concept project, involving five buildings would be implemented soon.
The Department of Public Works and Infrastructure would package a further 200 buildings for released under the strategy and De Lille reported that these buildings would "go out to the market in the next financial year"'.
Another issue that De Lille has to address is the bill for rates and services belonging to around 1300 properties that are illegally occupied and not generating any income. However, the department, with the help of real estate management services (REMS), continues to conduct site inspections and verification of properties that are reported as illegally occupied. REMS was sourcing an independent service provider to assess and bring eviction orders where necessary, according to De Lille.
Her department has also identified around 21 houses in Kwazulu-Natal, Empangeni that could be used for student accommodation. A joint task team between the DPW and department of higher education would conduct further site visits to identify more affected properties.
Maintaining such a vast portfolio of properties is a huge task and one that requires innovative solutions to ensure public buildings are used for public good. De Lille's department is committed to finding solutions to optimally use state-owned properties and ensure a greater level of maintenance and financial sustainability.
Better public spaces will benefit the commercial property industry
It goes without saying that improved public spaces will have a knock-on effect on offices and retail properties in the respective areas. What does this mean? Better rental rates on properties and higher value for sellers. If you are interested to find out more about future plans (from government or private enterprises) in a specific area, and how that it set to positively affect the location, get in touch with one of our area specialists at OfficePlace Commercial Property. They have their finger on the pulse of the latest new developments in each area and will be able to advise you so you can make the best decision for your office or retail space - whether you are looking to move to a new area, sell or buy. Get in touch today and let's talk property.
Author: OfficePlace