Rode's latest property newsletter says a recent investigation into vacant Cape Town office blocks shows that their market values could triple with parking in or close to the buildings.
Property broker Theodore Yach of TY Properties says he investigated a number of vacant buildings in the central business district, and looked into what it would take to get them
reoccupied.
In most instances, parking was the chief problem.
He calculated the residual value of the space as is, obtaining a figure of R800 to R1 200sq m.
"Then I redid the exercise, factoring in parking.
"The new market values tripled," Yach says.
The calculation showed a consistency over the 15 to 20 buildings included in the exercise.
Yach says the current ratio for parking has to be a minimum of three bays per 100sq m office space, and 6 bays per 100sq m retail space, or the development is destined for failure.
Publisher: The Star
Source: The Star
