Growthpoint notices uptick in office space demand in Cape Town

A view of Cape Town from The Terraces, Growthpoint Properties’ 16-floor A-grade office building.

Growthpoint Properties has noticed a significant increase in office space leasing activity in Cape Town.

During January 2022, the REIT signed seventeen new deals representing +- 8 500m2 of office space (at an average size of some 500m2) with a few of the leases signed exceeding seven-year terms.

Equally distributed between Cape Town’s CBD, Southern Suburbs, and Northern Suburbs, over half of the deals were with businesses in the financial and financial processing sectors with the rest split between the creative industry sector, complementary retail in the company’s office buildings and education and training.

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,” says Timothy Irvine, Growthpoint’s regional asset manager for the Western Cape.