REPORT OFFICE MARKET - Broll Property Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OFFICE MARKET REPORT Century City, Western Cape June 2018
Century City Office Market Report
June 2018
BROLL INSIGHT HIGHLIGHTS
Accessibility Trends
Situated alongside the N1 highway, between Cape Town’s CBD
• The node promotes sustainable development and most new
and Northern Suburbs, Century City has excellent transport
developments have complied with sustainability principles to
infrastructure with the node’s physical layout ensuring smooth
varying degrees.
access to and egress from the node.
• The Century City community successfully embraces the live-work-
Aesthetic Appeal play concept thanks to the introduction of sports clubs, park
Century City is a 250ha mixed-use node comprising upmarket runs, Sunday markets and other events to ensure continued
residential, office, retail and leisure developments on the banks appeal to the various occupiers.
of eight kilometres of waterways and canals. The office component
consists mainly of A-grade office space and all new developments Take-up
need to comply with the architectural standards of the greater • The demand for office space has been two-fold. Owner-occupiers
precinct. are looking for built-to-spec developments while medium and
large corporates are seeking larger sized A-grade and P-grade
Affordability spaces.
P-grade: R175 – R195/m²/month gross achieved
A-grade: R150 – R162/m²/month gross achieved • Increased office supply has been evident within Century City
B-grade: R105 – R120/m²/month gross achieved with new builds coming to the market, some of which have been
fully let while others are in the letting stages.
Amenities
Canal Walk, a super-regional shopping centre, provides the area Tenants
with a variety of restaurants, shops and services. Additionally, Century City attracts large corporate tenants in professional
hotels and conference facilities provide convenience and services to services. Industries such as consulting, IT, engineering, marketing,
the business component of the node. financial services and advertising/media have taken up long-term
leases in the node.
Area’s Security
The entire perimeter is walled or fenced with manned control points
at all entrances. Certain precincts also have boom control access.
Fibre-based CCTV surveillance feeds to a 24hr manned control
Centennial Place
room, and there is a strongly visible security presence supported by
the SAPS within the node.
Availability of Space
As at Q1:2018 Century City recorded an overall vacancy rate of
8.0% with P-grade buildings only 2.0% vacant. A-grade space was
roughly 8.9% vacant while B-grade stock averaged a 9.5% vacancy
rate.
1
Century City Office Market Report
June 2018
MARKET OVERVIEW Sable Park
Century City, Cape Town’s largest mixed-use node, comprising of These rates are deemed affordable when compared to other nodes
upmarket residential (low, medium and high density), office, retail, such as the Cape Town CBD, Woodstock, Foreshore or Claremont. Other
hospitality as well as leisure and entertainment offerings has been parking options proving quite popular are Century City’s four e-parking
growing steadily amidst the instability of the greater macro-economic facilities, offered at R485/bay/month situated within easy reach of the
environment. MiCiTi bus stops.
The office component of the 250ha node consists largely of A-grade Demand is growing, as the node continues to benefit from longer
office units (~74.0% of the total stock) with the remainder being commuting times into other areas such as the CBD and Waterfront, the
P-grade (13.6%) and B-grade (12.4%) in nature. P-grade spaces quality of the Bridgeways precinct and value-adds such as sports clubs,
are experiencing the lowest vacancy levels (2.0%) in comparison to events and fibre optic cabling available to all tenants. Additionally,
A- and B-grade spaces, 8.9% and 9.5% respectively. The availability construction activity within the node has been driven by the demand
of 11,000m2 of A-grade space can be attributed to the former PWC for built-to-spec developments as well as green star-rated buildings
building which is on the market to let and/or for sale. owing to lower operational costs and efficient floor plates.
Century City’s excellent transport infrastructure, inclusive of the MyCiTi
Bus Rapid Transit system, allows commuters reliant on public transport
easy access into the area. The region also caters for private vehicle
users with buildings offering high parking ratios for both basement and
shade-net bays. Basement parking bays are priced at around R900/
bay/month to R1,200/bay/month while shade-net and open bays are
marketed at R650/bay/month to R850/bay/month.
Grade Overview
Prime Grade A-Grade B-Grade
Space in demand (m²) 100 – 8,000 100 – 8,000 50 – 500
Lease escalation 8% 8% 8%
Lease operating cost escalation 8% 8% 8%
Gross asking rentals (R/m²/month) 200 160 – 170 125 – 130
Gross achieved rentals (R/m²/month) 175 – 195 150 – 162 105 – 120
Length of lease (years) 3 – 10 3–5 1–2
2
Century City Office Market Report
June 2018
CONSTRUCTION ACTIVITY
The Century City node continues to grow steadily with a number 1,300m² of retail space and 3,000m² of offices has now been
of developments either under construction or having been recently fully let.
completed some of which include, but are not limited to:
• Sable Park, located in the Bridgeways precinct, has been recently
• The completed 18,000m² Bridge Park office development which is completed. The development has been awarded 5-Star green
home to ABSA/Barclays. star rating and comprises approximately 16,000m² of P-grade
space. Discovery has leased half of this space with the balance being
• The Apex, Annex and Matrix office buildings situated within the
currently marketed and experiencing strong demand.
Century City Urban Square which have all been recently completed.
The Apex, a green hi-tech eight-storey building with a curved glass • Construction of a local convenience shopping centre, Century Village,
exterior, comprises around 8,000m² of office space in units ranging measuring approximately 2,500m² and situated opposite the
from 280m² upwards. Large corporate tenants such as Norfund, Estuary Precinct, has commenced.
Mastercard, Derivco and Thomson Reuters have taken up space within
• Ratanga Junction, located on Sable Road, has closed and will be re-
the building which also has a retail component on the ground level.
developed into a 120,000m² mixed-use development. Planning is
The Annex, a 3,500m2 building situated directly above the Century
still in the early stages, however the precinct will include residential
City Conference Centre, consists of 4 floors of office space and has
uses, offices, hotels, convenience retail and more.
been fully let. The Matrix, comprising 51 residential apartments,
CONCLUDING REMARKS
Century City’s continued innovative approach to urbanism and environmental sustainability ensures that the node will remain attractive to
high-end occupiers and investors alike.
CENTURY CITY, WESTERN CAPE LISTINGS
Click the building name or image to view the listing online.
SABLE PARK THE ESTUARIES CENTENNIAL PLACE 1 WATERFORD PLACE
Gross Asking Rent Gross Asking Rent Gross Asking Rent Gross Asking Rent
R 200 R 160 R 150 R 155
(R/m2/month) (R/m2/month) (R/m2/month) (R/m2/month)
Sizes of units up - Sizes of units 700 - Sizes of units 1,000 - Sizes of units up -
available (m2) 8,000m² available (m2) 1,400m² available (m2) 1,800m² available (m2) 11,029m²
Lease Period Lease Period Lease Period Lease Period
60 60 60 60
(months) (months) (months) (months)
Availability Immediately Availability Immediately Availability July 2018 Availability March 2020
Click here for further listings in Century City.
3
Head of Broking
Sean Berowsky
+27 21 446 1823
+27 82 810 8950
sberowsky@broll.com
Area Specialist
Stephen van Zyl
+27 21 446 2516
+27 82 376 7240
svanzyl@broll.com
Research - Divisional Director Disclaimer
Elaine Wilson Broll Property Group has taken every care in the preparation of this report. The sources of
information used are believed to be accurate and reliable, but no guarantee of accuracy
+27 11 441 4083 or completeness can be given. Neither Broll Property Group, nor any CBRE company, nor any
ewilson@broll.com director, representative or employee of Broll Property Group, accepts liability for any direct or
consequential loss arising from the use of this document or its content. The information and
opinions contained in this report are subject to change without notice. No part or parts of this
report may be stored in a retrieval system or reproduced or transmitted in any form or by any
means, electronic, mechanical, reprographic, recording or otherwise, now known or to be devised,
without prior consent from Broll Property Group. All stock and vacancy figures have been derived
www.broll.com from SAPOA.
You can also read
