Claremont is a bustling suburb in Cape Town's Southern Suburbs. Known for its vibrant commercial and retail hub, it has a variety of shops, restaurants and entertainment options that service locals and visitors alike. The area and surrounds are also home to several prestigious schools as well as the University of Cape Town. In terms of accessibility, major highways and public transportation ensure that Claremont is well-connected to the rest of Cape Town.
COVID-19 has had a dramatic effect on the supply of office space in major office nodes across South Africa, leading to a decrease in rental rates, with some areas affected more severely than others.
The highly sought-after commercial node of Claremont was hit hard in both Premium and A-Grade offices, with vacancies on Premium Grade rising to a high of approximately 11,400 p/m2 in July 2020 and rentals dropping to a low of R219 p/m2 by September 2021. A-Grade supply peaked in January 2021 at 10,648 m2 and rentals dropped to R164 p/m2 by April 2021.
Q4 2021 saw a slow recovery as lockdown eased and companies started to return to office, albeit on flexible terms and not completely. Vacancies dropped off on Premium Grade to just over 1,100 m2 and with this rentals began to climb to R275 p/m2 by May 2022. A-Grade vacancies dropped by about 50% to the 5,000 m2 level and rentals clawed back slowly to an average of approximately R180 p/m2 . This trend of decreasing supply and increasing rentals is expected to continue as more and more people return to the office on a more permanent basis.
Rob Sedgwick
