The mystery of the zero-vacancy office park
I have spent over ten years in the commercial property game, and if there is one thing I have learned, it is that quality always commands a premium. When I talk to clients about office space in the Southern Suburbs, the conversation almost always turns to The Oval in Newlands. And every time, I have to give them the same answer: it is full.
The Oval currently sits at a 0 percent vacancy rate. In a market where many landlords are fighting for tenants with incentives and lower escalations, this park is the exception. It is not just a building; it is a brand. For those looking for office space in Newlands, the rarity of space here is a reality of the local market.
A history of prestige in the Southern Suburbs
The Oval has been a fixture of the Newlands commercial scene for decades. It was not built to be a high-density concrete block. Instead, it was designed to offer a campus-like feel, nestled in green grounds with views of Table Mountain. This approach has proven its worth time and again. According to SAPOA, tenants today are prioritising wellness-focused environments more than ever. The Oval achieved this back in 1985 when the first sods were turned.
What keeps the demand so high? It is the tenant mix. The park attracts blue-chip companies, international renewable energy firms, and established financial consultancies. When a tenant moves in, they tend to stay. It is the definition of institutional stability.
Why businesses refuse to leave
I often get asked if the park is dated given its heritage. My answer is always no. The landlord, Growthpoint, has been smart about modernization. We saw a great example of this with the 2019 Newlands building project. They introduced P-grade infrastructure into the estate, ensuring that the technology, energy efficiency, and digital readiness match the needs of a modern corporate headquarters. It is the perfect blend of legacy charm and modern utility.
Accessibility is the other big driver. It is sitting right on the doorstep of the Main Road, making it a short commute from the Cape Town CBD or the airport. For local executives, the City of Cape Town has done well to maintain the arterial roads that feed into this node. If you want to see how other areas in the city are performing, check out our market insights.
The reality for incoming tenants
If your heart is set on The Oval, you need to be patient or have a broker who keeps their ear to the ground. Because there is no foreseeable space coming onto the market, most deals here happen off-market, often via lease assignments or early renewals.
If you are exploring alternatives, the retail and office spaces in Claremont offer a similar proximity to lifestyle amenities and transport. Many businesses that missed out on The Oval have found great success in the Claremont CBD or even heading towards office space in Rondebosch, which captures that same Southern Suburbs energy.
What should you do next?
Don't wait for a sign to go up on the fence. It likely won't happen. The best strategy is to be proactive. If your lease is ending in the next 18 months, get in touch so we can monitor the stack for any potential movement. Alternatively, you can search available properties across the rest of the Southern Suburbs to see what other A-grade options are currently hitting the market.
Remember, the best buildings in Cape Town do not need to advertise. They just need to keep their tenants happy.
