CAPE TOWN CBD & CENTURY CITY OFFICE RENTAL MARKET

For many tenants signing leases 4 to 5 years ago at the peak of the market, their gross rentals will now probably be ahead of the average current asking rentals for A-Grade office space. As an example, a lease agreement signed 5 years ago at R95/m² with a 9% escalation rate will now be expiring at around R135/m². At present, there are a number of A-Grade office leasing opportunities ranging anywhere from R95/m² - R110/m² in the Cape Town CBD & periphery nodes, R140/m² - R165/m² in prime V&A Waterfront offices, and R100/m² - R130/m² in Century City. The V&A Waterfront, with its unique location, have just launched the New Clock Tower Offices with spectacular views of the harbour basin and a healthy parking ratio of 4 covered parking bays per 100m² leased with additional visitor parking facilities available. Century City also has a number of good opportunities stretching anywhere from 200m² to 4,000m² in the R95/m² to R105/m² range. With very few speculative office developments taking place, it is probable that current rentals will remain static but may even firm slightly on the back of slow but gradual take-up. The market is at that point where tenants can negotiate attractive lease terms for premises that meet their requirements, or to potentially renegotiate their lease agreement at their current premises upon better terms. Baker Street Properties are well placed to assist tenants in both instances and can provide market information and advice to assist them in taking advantage of current office market conditions. For more information please contact Cliff Toerien at Baker Street Properties on (021) 461-1660, or visit our website at: www.baker-street.co.za.