Why a 4000m² mixed-use development in Cape Town’s CBD offers the types of property solutions that your customers are (really) looking for.
Securing a profitable and sustainable income from your commercial property business requires a long-term view. Property developer, Jose Rodrigues, says that the City of Cape Town’s new spatial planning legislation to redress the spatial ills of the apartheid era and break down the barriers of inequality are just one of the driving forces leading to a change in how urban spaces are packaged.
JLL contributor, Ang Kian Seng, adds that interest in ‘green real estate’ is being driven by tenants and investors that advocate corporate social responsibility. “[They] are increasingly expecting a better indoor environment, lower operating costs and enhanced market value for their spaces,” he says. Basically, tenants want convenience, but they aren’t willing to compromise their eco-friendliness.
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The City of Cape has given the go-ahead on a new mixed-used property development that’s aligned with the city’s revitalised spatial planning initiatives. Property developer, Jose Rodriguez, says that the new development also appeals to tenants that want convenience and access to the amenities they need without having to travel great distances to access them.
As more tenants look toward mixed-use property developments to meet their needs (personal and business), the types of commercial and residential hubs you create can determine whether you’re running at capacity or perpetually putting up To Let signs.
If you’d like to ensure that your future property developments are profitable and sustainable, here are three factors that are weighing on the minds of tenants looking for real estate:
1. Environmentally-friendly solutions are a must
Rodrigues says that the development in Cape Town will target a positive Green Star rating to appeal to potential tenants that are enthusiastic about the environment. The site’s developers are incorporating solar panels, sustainably-made materials; and are aiming for zero-carbon footprint buildings in some instances.
Ang Kian Seng adds: “Governments can help boost demand for sustainable buildings by extending green building certifications to tenants. In Singapore, the public sector champions this by leasing office spaces only from buildings which are at least certified Green Mark GoldPLUS.” As the South African government tightens its grip on energy-efficiency in the coming years, you can expect more local companies to move into ‘greener’ hubs.
2. Buildings must align with a city’s core objectives
The Cape Town CBD’s new property development is set to align with the city’s new spatial planning legislation.
Rodrigues says they are implementing this legislation: “By removing the old ‘buffer zone’ of industrial buildings in the Rose/Buitengracht edge to replace this obsolete space with a fully integrated, mixed-use residential development.”
He explains that city managers are looking to increase residential use within the central city, specifically on strategic sites. This is an important point to note, as you must ensure that any future developments you’re working on aligns with your city’s legislated requirements.
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3. Develop what’s in demand in an area
Cape Town Central City Improvement District’s report reveals that 750 residential spaces were occupied in 2000; however, in 2016 this had already jumped to well over 2000. City of Cape Town representatives also predict that they will require 500 000 new residential units by 2032, which reveals a high demand for mixed-use (eco-friendly) types of hubs.
Considering that your tenants will want multi-purpose nodes to reside and work in, these types of developments will be in high demand for the next 15 years. If you’re skilled at building housing, then Cape Town might be the ideal location for you to consider as you aim to the grow your business. Alternatively, you can identify any spatial planning reforms to capitalise on in the areas that you develop the – but keep in mind that efficient buildings remain a must-build.
- More tenants are seeking to move into mixed-use hubs, leading to a growth in the number of multi-use nodes around the country.
- City of Cape Town is using its revitalised spatial planning initiative to ensure that property developers are producing the types of properties that people actually want.
- As more tenants look to improve their ‘eco’ credentials, you can expect demand for energy efficient premises within mixed-use hubs to grow.