Area focus: Pretoria and its commercial decentralisationApril 3rd, 2013 | Posted by in News
South Africa’s capital city of Pretoria (or the Tshwane Metropolitan) intersects in its multi-cultural CBD, which is filled with buildings – old and new – that show the overlap of history and architectural styles; the personality of which is represented by the people who live, work, and eke out a living in the CBD. With the Telkom buildings, law offices, and other commercial and retail tenants bringing the private sector into the CBD, the city’s aged town planning (and the lack of public parking and easy-access transport) proved to be a hindering factor in the business growth of the CBD.
While government departments make up many of the city-based tenancies, private sector companies have over the years opted for moving out of the CBD to more suitable and modern decentralised locations. There are a number of decentralised office nodes that now characterise the business environment across the greater city of Pretoria.
Arcadia and Hatfield
The suburb of Arcadia consists of many residential abodes that have been converted into commercial properties. This is also the area where many embassies are located. Office buildings and office parks are few and far between, with office buildings modestly offering 3 500sqm of office space or less. Hatfield comprises quite a bit of commercial activity, along with some of Pretoria University’s development centres. Hatfield’s vacancy rate of 6% shows stability in commercial tenancies, but the downside to this area is that there is little potential for more development.
Gaining considerable popularity over the years due to its proximity to the CBD as well as to the retail space in Brooklyn Mall, Brooklyn and its surrounding areas comprise about 160 000 sqm of luxury and A-grade office space. With a very favourable vacancy rate of 2-3%, it’s easy to see why businesses want to be in Brooklyn.
Lynnwood and Menlopark
Moving further east away from the CBD and into the residential areas of Lynnwood and Menlopark, commercial nodes in these neighbourhoods are represented by low-density office parks found on the main routes. There is increased commercial interest in this area because of the N1 highway upgrades as well as the development of the Lynnwood Bridge lifestyle centre and office park, just off the Lynnwood Road offramp. With a total of 233 000 sqm of office space and only 6.5% vacancy rate, this space will soon be in huge demand because of the limited development capacity in this primarily residential area.