Cape Town CBD still OK

Posted On Friday, 06 July 2001 03:01 Published by
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DECENTRALISATION from Cape Town's city centre needs to be put into perspective, says Tommy Osborne, national property management director of JHI Real Estate.

DECENTRALISATION from Cape Town's city centre needs to be put into perspective, says Tommy Osborne, national property management director of JHI Real Estate.

"The affect of the trend in Cape Town is marginal when compared to rest of the country, he says. "This is particularly evidenced by the fact that the A and B grade office sectors continue to perform well".

According to Osborne, decentralisation in Cape Town also needs to be viewed in relation to the significant size of the downtown area and the high level of square metres under occupation.

"New developments by major players such as Investec, and Nedbank's purchase of 2 buildings for their new regional headquarters, is further proof of ongoing investor confidence in the city.

He acknowledges, however, that B minus and C-grade accommodation has come under pressure as a result of obsolescence and changes in technology.

"This is a natural consequence of properties in older areas and is a worldwide phenomenon, as is the decentralisation trend for that matter.

Osborne applauds the positive impact of the City Improvement District initiative on both cleanliness and security with statistics showing a 46% reduction in crime, and supports the motion to extend the boundaries of the initiative to the outer borders of the city.

He points out, however, that a corporate decision to move out to the suburban areas is not necessarily motivated by negative factors in the city centre. "Convenience and the desire to work where you live is a big motivator of decentralised development throughout the world".

None-the-less, Osborne believes strongly in the future of the Cape Town CBD and believes that a positive attitude from the business community in general will go a long way to ensuring its long-term viability.


Publisher: Cape Business News
Source: Tommy Osborne

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