The commercial property boom in Cape Town Central

It’s no secret that the commercial property sector in Cape Town is flourishing, and nowhere is this more apparent than in Cape Town Central, one of the Western Cape’s most affluent commercial nodes.

One only needs to look at the numbers to realise the extent of growth that’s taking place here, and they’re now easy to find, thanks to The State of Cape Town Central City Report. This annual publication draws on the CCID’s (Central City Improvement District) vast research network to provide insights into the economic climate of the Cape Town CBD and inspire investor confidence in the area.

With the City of Cape Town’s last property valuation, released for the 2016 and 2017 financial year and reflecting a value at the time of over R30.628 billion, the latest investments listed in the report at R23.954 billion could see official property valuations in the Cape Town CBD close to doubling within the next 5 to 10 years. Commercial property has also held its own over the past year in the central city, with the 2017 report reflecting vacancies at 9.9%, while retail vacancies across the CBD stood at only 7% for the year under review.

“We are particularly heartened that retail is doing well in the central city as we know it’s a tough economy out there. Which is why, each year, the report also takes a close look at upcoming trends on the horizon so that we can pass these opportunities on to our retail community and prepare them for what lies ahead, for example, in the merging of online and in-store customer experiences,” said CCID communications manager and the editor of the report, Carola Koblitz.

Among other opportunities taken up from previous reports, she said there had been a rise in the CBD’s east city precinct. “Also known to the CCID as Precinct 4, this is the area that lies largely between the Grand Parade and the Roeland Street side of town,” Koblitz said.

- https://propertywheel.co.za/2016/09/cape-town-cbd-welcomes-12-new-developments-worth-more-than-r2bn/

Some of Cape Town Central’s most talked-about new developments include The Modern and Zero2One Tower.

According to developers, The Modern will be located on the corner of Bree, Loop and Hans Strijdom Avenue, and will combine the old with a new ‘post-modern’ style. The building will feature a high-rise glass structure on top of a podium base, with a ‘twist’ to the facade, adding shape. It will offer 24 luxury apartments, a 230-room 5-star hotel, and 814 sqm of retail space. The development will also offer over 10,000 sqm of premium office space.

Located on the corner of Strand and Adderley Streets, Zero2One Tower will be the tallest building in Cape Town at 42 storeys, covering a floor area of 44 000 sqm which includes retail at ground level and 860 apartments of which 312 will be affordable New York style apartments selling for less than R 800 000 each. The Zero2One Tower will provide some of the most impressive 360 degree views available in Cape Town. The building will also feature a world-class viewing deck available to the public which should generate significant revenues for the owners of this development. Construction of this tower block is scheduled to be completed in August 2020.

Developments like these are a clear indicator that the commercial property industry in Cape Town is on a roll, and won’t be slowing down anytime soon. If you are considering moving your business to Cape Town Central, don’t hesitate to pick up the phone and get in touch with one of OfficePlace’ commercial property brokers today for specialist advice and the latest available listings in this hugely popular commercial node. We focus on the leasing, selling and/or purchasing of commercial property in Cape Town, Johannesburg and Pretoria.