Service delivery a game-changer for Cape Town’s commercial sector

The trend of semigration to the Western Cape is not new, but it is now expanding beyond families to businesses, particularly among commercial property owner-occupiers who are seeking better service delivery and more reliable power. According to James Reed, Commercial Property Chief Operating Officer for Investment Services in Cape Town, semigration is already driving an increase in demand for business premises in the region.

In the fourth quarter of 2022, financial constraints were the primary reason for moving premises, followed closely by the desire to relocate to an area with more reliable utilities and municipal services. While the percentage of sellers relocating for better service delivery remained between 9% and 12% in 2019 and 2020, it spiked to 16.9% in 2021 and reached 24.2% by mid-2022, dropping only slightly in the fourth quarter.

Nationally, the primary motivations for moving premises are financial pressure, the need for more reliable utilities, the desire for bigger or better premises, moving closer to the market, better transport access/logistics, and downscaling to smaller premises.

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