Having experienced phenomenal growth in recent years, Cape Town’s Northern Suburbs retain high appeal as a location for a broad cross-section of businesses.

This is particularly true for those whose employees live in the area and are able to avoid major traffic congestion by working in the same locale.

So says Marius Basson, JHI director for the Western Cape, who adds that the burgeoning growth of this area is evidenced not only by the major development seen in Tyger Valley and Century City, but also by the increasing residential expansion of the Durbanville and Milnerton areas towards the north.

“Interestingly, we are seeing a growing number of businesses with staff who travel to the Northern Suburbs from Table View and surrounding areas – just 15-20 minutes away, and even from Stellenbosch, Paarl and Malmesbury. Being a newly developed area providing an appealing work environment, the Northern Suburbs are popular among young professionals and up and coming businesses – with Cape Town International Airport approximately 20-25 minutes away – and have drawn an influx of businesses in the financial sector.”

Basson says another key factor which provides a compelling reason for businesses to consider the Northern Suburbs as a location is the abundance of parking at affordable rates, with secure, covered parking realising a monthly rental of between R400 and R600 compared to R1k plus per month in Cape Town’s central city.

Good office rentals are also available at rates of R68-R75 per sqm in Voortrekker Road in Bellville’s CBD – close to the N1, N2 and all key routes. In the Sunbel building space of 4000-5000sqm is currently available to let, while in the Tyger Valley area B-grade office space in a very pleasant working environment is available at rates of R86 per sqm or less, with A-grade space at R100 per sqm and upwards.

He adds that while the Northern Suburbs also experienced pressure during the economic slowdown, this area has remained resilient. “While there has been a slowdown in rentals in the area, in terms of the properties managed by JHI we’ve seen vacancies of only up to around 5% in general.

“We are receiving enquiries for office space, at present predominantly for smaller areas of between 100 and 200sqm, as well as for retail space – particularly in the Cape Flats, where businesses concentrate on catering for after-hours and weekend shoppers. Investors are still evident in the marketplace – including owner-occupiers, seeking yields of 12-13% generally in buildings of approximately 4000-5000sqm in a desirable location and comprising a mix of office and retail space, or business parks offering office space,” says Basson.

Vacant land for development is also available close to Tyger Park around the Bellville Velodrome, offering sound value for money, as well as industrial land for development in areas such as Brackenfell, Kuilsrivier and the new growth node around Northgate Island.

“Another interesting trend we are noting is the conversion of residences to commercial use,” adds Basson.

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