“Overall, the Cape Town leasing statistics for retail, office and industrial space show an increase from a deal value of R256 million in 2006, to R370 million in 2007,” explains David Stoll, regional manager of Growthpoint Properties Limited in Cape Town.
An analysis of the leasing figures for 2007 shows that office leases made up the largest slice of the leasing pie totaling a value of R154 million or 42% of leasing deals, followed closely by the retail sector at R133 million, or 36%. An additional R83 million of rental income value was leased in industrial premises over the year, accounting for the remaining 22% of leases signed with Growthpoint in the Western Cape.
Interestingly, Stoll notes, compared with 150,040m² of GLA in 2006, the team clinched deals amounting to 150,174m² in 2007. He points out that while the value of Growthpoint’s Cape Town leasing deals has increased in value substantially, the total size of space leased has not changed appreciably since 2006.
“The indicators suggest that office leases particularly are achieving strong rentals,” Stoll explains. “The average value of office leases that we’ve signed up in Cape Town has increased by some 50% between 2006 and 2007.”
Although the majority of Growthpoint’s deals in the region were negotiated by internal brokers, external brokers contributed about 15% of the total lease value for the year.
Growthpoint Properties Limited is South Africa’s largest JSE-listed property company with assets and market capitalization of R23 billion and R18 billion respectively. Growthpoint is a hands-on property owner which undertakes the asset management and property management of its premium portfolio of some 430 buildings located throughout South Africa and spanning over 4,200,000m2.
Approximately 20% of Growthpoint’s property portfolio, by value, is located in the Western Cape.
