During the past decade, the total value of property within the Claremont CBD has risen from R1.4 billion to over R7 billion. During the past year alone, the value of property in the CBD has risen by R1.9 billion.
Claremont’s initial main draw has been it’s fantastic shopping with Cavendish Square, Montclare Place, Stadium on Main and The Link boasting some of the best retail properties in the Southern Suburbs. Due to high rentals and ever increasing traffic congestion, the Claremont CBD has become a standout business node.
The Claremont CBD’s property development profile continues to grow, with 6 new developments scheduled for completion over the next five years. Some of these developments are currently underway while others are still at the early stages of the development process.
Werdmuller Centre is a modernist building was designed by Roelof Uytenbogaart in the 1960′s and named after former Old Mutual chairperson George Werdmuller. Approval has been obtained from Heritage for part demolition. Planning has been ramped up to finalise the design to suit its surrounds and provide a better commercial offering. They plan to develop a more commercially efficient, mixed-use design incorporating 21 500m 2 of retail space , commercial office and student accommodation. Development of the R450 million project is scheduled to be underway within the next year and a half.
Draper on Main is Growthpoint Properties’ next venture in the Claremont CBD. The 5 500m2 A grade green star rating commercial property development on the corner of Main and Draper Roads is scheduled for completion by early 2019. The development will house 4850m2 of office space , 650m2 of retail space and a parking ratio of 3.5 bays per 100m2.
Old Marshall House Located on the corner of Main Road and Grove Avenue, Old Marshall House is another development project by New Property Ventures. The R140m development will comprise office, retail and accommodation. The construction is scheduled for 2019.
Other developments are also in the early stages of planning, including projects on the old Food Lover’s Market and the Market Toyota sites. Details are yet to be disclosed, but we look forward to seeing these plans progress in the near future.
The growing trend towards decentralised business nodes has attracted many commercial businesses to relocate to the Claremont CBD. Newer commercial property developments offer more space for lower rentals than the Cape Town CBD. This is a particularly attractive benefit for businesses that need larger floor areas and accessible transport options with less congestion, such as call centres and financial services institutions.
The Claremont CBD is part of a growing network of nodes attractive to business process outsourcing (BPO) enterprises seeking larger floor space for lower rentals combines. Claremont has also become a financial hub with some of the country’s biggest financial and private equity companies based in the CBD. A number of leading financial institutions have relocated to Claremont’s CBD, including Brait, Peregrine, Coronation, Deloitte, Citadel and RE:CM and the Institute of Bankers of South Africa. Like the BPO sector, these entities are taking advantage of lower office rental costs, and greater variety in accommodation options. The financial services companies benefit from the cachet of an affluent address, while avoiding the congestion and high rentals of the Cape Town CBD. The Claremont CBD provides a vibrant environment in which to work, live and play. The central location, convenient lifestyle offerings, easy access to prominent schools, public transport and A Grade office blocks ensure that office space in the Claremont CBD is in constant demand.
The total rentable office space in the Claremont CBD has increased by 15 279m2 over the past five years. Today, it totals 118 901m2. An additional 3 000m² rentable office space became available during the second quarter of 2016, with the release onto the market of 11 000m2 A grade office space. This space was created with 6 500m2 within the new Citadel development, and the remaining 4 500m2 in Grove Exchange. A grade office space comprises around 53% of the total office space in the Claremont CBD.
For more information on offices rentals and purchasing commercial purchasing opportunities in the Claremont CBD contact Knight Frank.