Russell comments, “In fact, if one compares the vacancy levels with those recorded a year ago it would appear that vacancy levels may be reaching their peak.  Year on year figures have seen a slight increase in vacancies in three of the seven nodes surveyed with vacancies in 3 nodes decreasing and one node remaining the same.

“The total office vacancy in the Cape Town CBD is now at 9,8% where a year ago it was 9,1%.  In the Rondebosch/Newlands node there has been an increase from 4,8% to 5,9% in the past year, along with the V & A Waterfront where there was a small increase from 2,9% to 3,7%.”

Russell says that areas which have enjoyed a decrease in vacancies over the past year are Claremont, where it has reduced from 16,6% to 12,7%, Pinelands down from 5,2% to 4,8%, and Century City where a vacancy of 11,7% last year is now down to 10,2%.  In Bellville the vacancies remained the same as a year ago at 6,2%.

Russell adds, “New developments coming on stream are often the main contributing factor to increasing vacancies. However, with no significant speculative office developments taking place, a major change to these figures is not anticipated”. 

“While this is good news for landlords there is no doubt that it is still a tenant’s market.  Attractive lease terms can still be negotiated for offices in most locations where tenants can find the right premises to meet their requirements.”

“Baker Street Properties have experienced a steady flow of enquiries from office tenants who want to take advantage of current market conditions. We are in a position to find the right property solution, or if necessary, renegotiate their existing lease should they wish to remain in their premises. In both instances the tenant receives the best advice enabling them to take advantage of the concessions available in the market today,” concludes Russell.