Guide: Find Your Perfect Office Space in Cape Town
With a strong local economy, a tourism sector that is recovering to its pre-pandemic heights, and the ongoing positive impact of foreign investment and immigration, Cape Town is decidedly the best metro to invest in today.
Prospective commercial property owners and tenants usually don’t need much convincing to move to the Mother City, especially with the ongoing challenges faced in other metros. But once you’ve made the decision to relocate, the next challenging step is to choose the perfect office space in Cape Town to suit your needs.
If you’re new to Cape Town, navigating the various commercial and industrial areas around the Peninsula can be tricky. To help you familiarise yourself with all the commercial property offerings that the city has to offer, we’ve put together this compact guide to office and industrial premises in the country’s most sought after commercial region.
Let’s begin with a general survey of Cape Town’s commercial property sector before moving on to the considerations that any business should be mindful of when choosing a property. Finally, we’ll look at the most popular areas for business owners, from the CBD to the West Coast.
Cape Town offers a wealth of commercial real estate options
There is a wide variety of commercial property facilities on offer throughout the peninsula, especially with the construction boom of recent decades. Today, the Mother City is home to modern office and industrial properties across multiple price points.
- Cape Town commercial property is currently at the peak of a recent demand, with prices following suit.
- With rentals now 6% above their 2019 pre-pandemic high, the surge in demand for commercial space from small to large size businesses has placed a serious premium on office space throughout the Cape peninsula.
Taking a glance at the city skyline over the past few years, it’s impossible not to notice the shiny new office towers rising over the Atlantic Ocean in the foreshore and reshaping the northern suburbs in Century City.
These buildings typically cater to grade A office tenants and feature a raft of cutting edge features that discerning tenants have come to expect – especially in the post-pandemic era.
- Commercial property rentals in the city’s most popular buildings currently exceed R220 per square metre, with tenants having to look longer to find the ideal office space as vacancies drop into the single digits.
- Nonetheless, with the help of an expert property agent it’s still possible to secure an office space in a building that makes a fantastic first impression on clients.
In addition to the CBD and Century City, a number of stylish new buildings have recently been completed in the northern and southern suburbs, as well as Durbanville and the West Coast.
Business owners relocating from other parts of the country or overseas often choose these areas for their proximity to popular residential suburbs and weekend activities including golf, sailing and surfing, and the ever popular Cape Wine route.
Demand for industrial & retail space in Cape Town grows
On the industrial property front, Cape Town has a wide variety of spaces suitable for light manufacturing, warehousing, as well as logistics and distribution.
As the regional economy continues to expand, Cape Town is seeing an increased demand for industrial spaces serving the retail sector.
This is expected to increase dramatically in the coming years, as the likes of Amazon expand into SA’s online shopping space, triggering a spike in demand from consumers who have grown used to home delivery services offered by other retailers.
The city’s industrial areas which include Epping, Maitland, Elsie’s River and Parow are a comfortable driving distance from both the CBD and Cape Town International Airport as well as the harbour.
With an uptick in shipping activities in response to the recent backlog at Durban Harbour, securing warehousing facilities will be essential for the import/export sector, and not only for retailers.
Speaking of retail, no survey of Cape Town’s commercial property sector would be complete without mentioning the many malls and other shopping facilities that are as popular as ever.
The days when shoppers had to stay away from malls during lockdown have become a distant memory for many shoppers as they head to their favourite centres for an immersive experience that simply isn’t possible online.
Large retail venues also feature restaurants and other types of entertainment that make the shopping experience a major weekly event for families.
While we expect some routine shopping like grocery runs to be replaced by delivery services going forward, there’s no substitute for the in-person experience of higher end retail and retail space should remain healthy in the rental market.
Outside of traditional malls, retail spaces in the CBD are still in high demand, especially with the city’s daytime and night-time population continuing to increase.
As Cape Town’s economy continues to expand, the commercial real estate sector is expected to go from strength to strength. This is excellent news for would-be tenants as they weigh the advantages of securing the right office space in the Mother City.
Factors to consider when choosing an office space in Cape Town
Before you sign your commercial property lease, it’s essential to make sure that the commercial space you choose is modern, on trend, and suits the specific requirements of your business.
Here are some things to bear in mind when you select a Cape Town office space.
Size requirements
At current prices, a large office unit in a sought after building may add a significant amount to your company’s overhead.
Fortunately, our team can help you to select the perfect location without stretching your budget too thin, especially in the early stages of your business expansion.
Proximity to Transportation Hubs
If your business relies on logistics infrastructure or if you and your team travel frequently via road or air, it may be worth investing in premises within close proximity to the airport or harbour.
Depending on your other requirements, you may want to opt for a light industrial property with ample storage space or physical goods.
Long-term outlook
With property and rental prices rising throughout Cape Town and no signs of a correction on the horizon, businesses may have the last chance to secure excellent deals on Cape Town commercial property as buyers or tenants.
With an excellent outlook for the city’s economic future and the popularity of Cape Town commercial buildings, companies can invest with confidence, knowing that they’ll be operating in a business environment that is going from strength to strength.
Setting up in Cape Town: choosing the best area
Understanding the commercial property landscape is essential for any business in the process of relocating to Cape Town, but when it comes to choosing the exact location where your business should be based, there is no substitute for local knowledge.
Our team, with its decades of collective experience as commercial property brokers in Cape Town, are in a very strong position to advise clients about the ideal location for their new business.
To get you started on your journey of discovery, we’ve put together a quick description of some of the city’s most popular areas for commercial tenants.
CBD: A classic reborn
One of the first things that any business traveller from South Africa’s other provinces will notice when visiting Cape Town is the vitality, cleanliness, and overall safety of the CBD.
The downtown area is one of the many success stories that can be attributed to the city of Cape Town’s professional and comfortable approach to governing the city for success.
The dramatic turnaround in the CBD’s fortunes has run in direct parallel improvements in city governance since 2006.
The City Center is an excellent place for businesses to set up a presence within close proximity to some of Cape Town’s biggest corporate headquarters, especially in the legal and financial sectors. Other popular areas include Gardens, Woodstock, Salt River and Observatory which are all considered prime locations to find Cape Town office space.
Businesses with a strong legislative agenda that are keen to establish and foster relationships with the South African Parliament will find the area around Wale and Adderley Street to be a perfect location within walking distance to the parliamentary buildings. The compound can also be accessed from gardens via a quick walk through the Company’s Gardens.
Century City for tech innovation
Since Panasonic announced that its Africa innovation centre would be opened in Century City several years ago, tech companies from around the world have flocked to the area with its pristine office, parks, moles, and ultra-modern lifestyle.
While the CBD speaks to heritage and renewal, Century City office space offers a taste of 21st century Cape Town and an ambitious vision for the city’s future as a tech hub.
Century City’s modern buildings contain some of the best office spaces in Cape Town, making it ideal for entrepreneurial start-ups and medium sized companies alike.
The Southern Suburbs: emphasising well-being and productivity
The areas at the foot of Table Mountain are known for their laid-back, on-trend living, and this extends to the commercial property sector.
The southern suburbs are the ideal location for small to medium size enterprises that plan to offer employees the opportunity to work close to home.
The parkland setting created by numerous trees and green spaces gives an atmosphere of wellness to the area which is further emphasised by the abundance of healthy cafes and restaurants. Office workers can enjoy organic meals during their lunch breaks or while entertaining clients and take advantage of the local cycling and bus services for sustainable transportation.
Some of the new developments in this area, including the Montclare, are experiencing extremely low vacancy rates as businesses flock to the area.
The proximity to some of Cape Town’s top schools, as well as UCT is a further incentive for business owners to live within cycling distance, or a short drive from the office and extend the same convenience to their workers.
Find your ideal property with us
After reading this guide, we hope that you have the information you need to help you find the perfect Cape Town office space for your company’s requirements.
To help you begin your selection in earnest, we’d love to connect with you and introduce you to our portfolio of premium property throughout the Cape peninsula. Contact our team today to get started
