Growthpoint sees uptick in Cape Town office demand in January

Published on: 08/02/2022

In January 2022 – a short month for business with schools returning from summer holidays after mid-month in the Western Cape – Growthpoint Properties (JSE: GRT) signed 17 new deals for office space in Cape Town, signalling a discernible increase in leasing activity, a willingness from new clients to commit to office space and the beginning of a possible shift in office market sentiment.

“The surge of new office letting activity during the final two weeks of January was a welcome start to the year. The 17 new deals represent some 8,500sqm of office space, with an average size of around 500sqm. The lease lengths also demonstrate a real commitment to these offices, with a few of the leases signed exceeding seven-year terms,” reports Timothy Irvine, Growthpoint regional asset manager for the Western Cape.

Over half of the deals were with businesses in the financial and financial processing sectors. The rest were split between the creative industry sector, complementary retail in Growthpoint’s office buildings and education and training.

The uptrend in office leasing was evident in Growthpoint’s quality portfolio across the Mother City. The deals were equally distributed between Cape Town’s CBD, Southern Suburbs and Northern suburbs.

“This early positive trend in the office market supports anecdotal reports of an increase in traffic in the city and seems to indicate the desire to get back to work and for businesses to return to full productivity. While there will undoubtedly be changes to how people work, and the responses to this will vary between sectors and businesses, the uptick in leasing in January certainly bodes well for the Cape Town office market in 2022,” notes Irvine.

Growthpoint creates space to thrive with innovative and sustainable property solutions in environmentally friendly buildings while improving the social and material wellbeing of individuals and communities. It is an international property company invested in real estate and communities across Africa, Australia, the UK and Eastern Europe, and South Africa’s largest primary JSE-listed REIT. Growthpoint is 50% co-owner of the V&A Waterfront in Cape Town. It is an established leader in commercial green developments and owns and manages the biggest portfolio of green-certified buildings in Africa.