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As more South Africans drive into the office and highjacking becomes more frequent and severe, secure parking bays have become a hot commodity – with a sizeable price tag.
Rode’s Report on the South African Property Markets for 2023 showed that office rentals in major decentralised nodes outside of CBDs and nationally have increased.
Despite an uptick in demand for office space, rental growth did, however, slow in Johannesburg and Cape Town.
According to Rode, Cape Town has performed well in the past few quarters, despite having a low base in 2021.
In Q1 2023, grade-A nominal rentals in decentralized areas of Cape Town increased by 13%, while rentals in grade-A decentralized office spaces in Johannesburg and Pretoria increased by 2.3% and 1.7%, respectively.
In contrast, decentralized rentals in Durban decreased by 2.3%.
The property group said that it is important to note that these increases are year-on-year, and only Cape Town managed to record above-inflation rental growth compared to a year ago.
All of these office spaces that are being rented also require some level of parking for employees. With a lack of efficient public transport, many corporate South Africans take their own car to work.
Tracking agency TomTom recently reported that motorists in each city spend between 22 and 35 minutes on the road every day.
Urban design-wise, many of South Africa’s cities have not adjusted sufficiently to more cars on the road and a growing population.
According to TomTom, Pretoria is the most congested city, with an average of 6 days spent in rush hour per year, Cape Town and East London come in second and third with 5.5 days spent in rush hour.
Following spending roughly half an hour on a oneway commute, finding a parking spot is likely to only further stress out a motorist.
The Rode’s broke down the rental costs associated with parking bays as follows:
(Note: In terms of the grades for office rentals, they breakdown as follows:
- Grade A+: New and top-quality, modern and lots of parking
- Grade A: Not older than 10 years, unless renovated, high-quality finishes
- Grade B: Between 10 and 20 years old, unless renovated
- Grade C: 20 to 30 years old unless renovated; in fairly good condition, although finishes are not up to modern standards
- Grade D: A building reaching the end of its functional life but can be used for storage
If a company was to build a parking bay – prices could vary as below:
- Parking on grade, including integral landscaping: R650-R850/sqm
- Structured parking: R4,600 – R5,000/sqm
- Parking in semi-basement: R5,000-R6,800/sqm
- Parking in the basement: R5,300-R9,300/sqm
Read: 18 new cars launching in South Africa in the coming months
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