Call Centres Help to Drive Commercial Property Demand

By Keke Khojane Head of Office Properties for Galetti Corporate Services.

It’s good news as the latest Rode’s Report shows a healthy improvement in commercial vacancy rates. Vacancy rates dropped from 20% in Q1 ’22 to 16.3% in Q1 ’23, and we now have our sights set on reaching and exceeding the 12% vacancy mark reached in 2019.

In-demand commercial property nodes responsible for beating the ‘COVID-19 slump’ include Rosebank and Waterfall in Gauteng, Umhlanga in KwaZulu Natal and Cape Town in the Western Cape – where vacancy rates are now at just 12.7%.?

Adversely, Gauteng’s former business mecca, the Sandton precinct, has struggled to regain momentum since the onset of the COVID-19 pandemic. So, while it’s clear that many workers are heading back to the office for good, we believe that Sandton will take longer to recover.?

Call Centres in Hot Demand

A rising trend contributing to our industry’s ‘resurgence’ is the high demand from the Global Business Services (GBS) industry – best described as outsourced, offshore jobs such as call centre agents. GBS is projected to employ another half a million South Africans by 2030 and offers attractive employment opportunities – particularly for the younger population looking to enter the job market.??

And while local companies continue to invest in their call centres, the catalyst for demand comes from international companies looking to centralise their outbound call centres on our local shores.?

Currently, we at Galetti are seeing a high uptake in commercial property demand from companies operating in the financial, legal and tech sectors, and a vast amount of the demand for GBS services being driven by the US.

Industry Deals Unpacked

In Gauteng, there has been the recent conclusion of around 40?000m2 worth of call centre space in areas such as Bryanston, Illovo, Waterfall, and Rosebank.??In Cape Town, demand is high, and supply is low – largely due to the ongoing semigration movement. There was however a recent deal concluded for 4 400m2 worth of space in Newlands. In Umhlanga, we are also seeing some demand trickling in.

Tenants in this space are generally focused on:

1. Location.?It’s all about easy access for call centre staff therefore, tenants are in search of properties that are near to public transport networks and major roads.?
2. A plug-and-play solution.?Rather than kitting out an office from scratch, these tenants are looking for properties that are already set up with office furniture and general facilities such as breakaway areas, canteens, backup power etc.
3. Security.?This goes without saying. Call centres normally operate 24.7, so 24.7 security measures must be in place.?

Let us help you find your one. Contact us.