Strong demand for office space has caused a rapid take-up in an office tower in Cape Town’s central business district (CBD).

Old Mutual Investment Group Property Investments (Omigpi) says the “fully let” sign went up on a high-rise where almost a third of the space was vacated by a big tenant last year.

Triangle House, formerly Safmarine House, on Riebeeck Street, has been restored to full occupancy by the letting of 7000m².

The property is one of the landmark commercial, retail and industrial properties in the Triangle unitised funds set up by Omigpi to provide returns for institutional retirement funds.

The group says the renaming of the building followed Safmarine’s move to the Victoria & Alfred Waterfront last year.

“The vacant space has now been occupied by larger users, some of whom have taken up to two floors in the building,” says Omigpi chief operating officer Amelia Beattie.

Beattie says the new premium space in the central business district is commanding rentals of up to R140/m², with older, A-grade offices fetching up to R115/m².

“The demand echoes the findings of a recent study by Omigpi of the city’s office and retail sectors. The study indicated total available CBD office space was increasing, total occupied office square metreage was increasing, and vacancy levels had dropped to 6,5% for the period 2002 to 2007,” she says. 

Business Day