A Snapshot of The Western Cape Commercial and Industrial Property Climate
Commercial sector
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Generally sluggish with very little movement in the market place
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Tenants are able to re-negotiate leases on favourable terms
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Triple A-grade office space in the CBD is plentiful which is putting downward pressure on good quality A-grade buildings to levels below R90/m² gross excl VAT
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Century City is the destination of choice with sectional title and leased units being snapped up off plan
Industrial sector
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A shortage of big box A-grade warehousing
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Electricity costs are negatively impacting on the manufacturing industry which is reliant on heavy power. Landlords are having to reduce rentals to assist these tenants
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Over supply of industrial units in the size range from 100m² to 700m²
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A shortage of vacant industrial buildings for sale for owner / occupiers
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Land sales remain sluggish despite there being a shortage of serviced sites
Investment Sales
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Strong demand
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Short supply
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Yields range from 7.5% to 10% depending on type and quality of property, covenant by tenant and terms of lease