Fully let because of office demand

The strength of demand for A-grade offices in the Cape Town CBD has been underscored by the fully let sign going up on a city high-rise where almost a third of the space was vacated by a major tenant last year.

Triangle House, formerly Safmarine House, on Riebeek Street, has been restored to full occupancy after the letting of 7,000sq m, says Amelia Beattie, chief operating officer of Old Mutual Investment Group Property Investments.

Triangle House is one of the landmark commercial, retail and industrial properties in the Triangle unitised funds established by Old Mutual investment Group Property Investments (OMIGPI) to provide steady, growing returns, primarily for the institutional pension and retirement fund market. Other Cape Town properties are Cavendish Square and Cavendish Connect in the Claremont retail node and industrial parks in Montague Gardens and Epping.

Beattie says the renaming as Triangle House followed the move by Safmarine to the Waterfront last year.

"The vacant space has now been occupied by larger users, some of whom have taken up to two floors in the building."

She says new premium space in the CBD is commanding rentals of up to R140/sq m, with older A-grade offices fetching up to R115sq m.

"The demand for office space echoes the findings of a recent study by OMIGPI of the city's office and retail sectors. The study indicated the available CBD office space was increasing, total occupied office square metreage was increasing and vacancy levels had dropped to 6,5% for the period 2002 to 2007. "

The release of the study findings by OMIGPI coincided with the purchase of a CBD site off Buitengracht from the City Council.

Beattie says plans for a new office tower on the site are being finalised.

For more information contact Mike Kerkhoff on 021 425 8085

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