Office Market Report Suggests Stable Demand Despite Tough Economic Climate

To download the full report, click here

BAT new office V&A Waterfront

Waterway House will contribute an additional 33,000 square meters of office space to the V&A Waterfront. Image credit: DHK

Highlights from this report:

  • Grade P office accommodation has grown exponentially as developments come to completion.
  • Cape Town recorded a 7.8% vacancy rate, having the lowest recorded vacancies among Johannesburg and KwaZulu-Natal, and a significantly lower vacancy rate compared to the national office vacancy rate of 10.5% according to the SAPOA office vacancy report.
  • There is very little new office development taking place, with the V&A Waterfront and Cape Town CBD having the most significant spaces presently under construction.
  • Vacancies at the Waterfront increased above the norm for this node as a result of the move of Maersk to the Cape Town CBD.
  • Small increase in rentals were recorded this quarter, however, it is questionable if this growth can be maintained in the short to medium term.

Authors:

  • Dave Russell – Director (leasing), Baker Street Properties, Cape Town
  • Zandile Makhoba, Head: Research, JLL South Africa
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