The State of Cape Town Central City Report

The State of Cape Town Central City report

2014: A year in Review In support of this report

Patricia de Lille Executive Mayor City of Cape Town In today’s knowledge economy, access to information is key to accessing opportunities. The State of the Cape Town Central City Report is an invaluable resource because it gives prospective investors a detailed assessment of our city. An example of this is the feature on the City’s new Economic Areas Management Programme (ECAMP), which tracks and routinely assesses the market performance and long-term growth potential in 71 business precincts across the metropolitan region. The Central City is the economic heartland where Cape Town residents meet the world and the information contained in this report helps to further our vision of competing with leading cities across the globe.

Minister Alan Winde MEC of Finance, Economic Development & Tourism Western Cape Government In 2014, Cape Town and the Western Cape drew international acclaim for being a destination on the rise. This was reflected in the many international awards our entrepreneurs and businesses achieved, all of which have served to boost our global reputation. This is our chance to capitalise even further on the opportunities inherent in our destination. In order to do so, it is crucial that we have the right information at hand in order to make informed decisions. This report, produced by the Cape Town Central Improvement District (CCID), tells the story of our thriving region and outlines for residents, businesses, investors and government the current prospects for growth in our city. It provides a base of information which a wide range of stakeholders will find useful. We are truly becoming a region in which it is great to live and work, and our people are at the centre of driving this.

Nils Flaaten Outgoing CEO of Wesgro The CCID has been instrumental in the success and economic sustainability of the Cape Town CBD as both a business and a leisure destination. The role played by the CCID also compliments the City of Cape Town’s world-class infrastructure, which includes integrated public transport and enhanced pedestrian and bicycle access – key for prospective job hunters and investors when considering relocation. Visitors to the Central City value some of South Africa’s top restaurants, art galleries and museums, emerging food markets and various forms of entertainment. In the long term, these positive attributes add to the ability of attracting new investors and help position the CBD as a world-class place to do business that guarantees quality of lifestyle, inclusion, professionalism, successful business partners and a competitive business jurisdiction. More and more multinationals have seen Cape Town as the gateway into Africa. We expect this trend to continue and the work done by the CCID and the City have been instrumental in achieving this global status. Contents Introducing the Cape Town Central City 2 The 2014 report: a year in review 01 3 Map of the Central City and surrounds 4 Cape Town in context 5 Execut ive summary of the 2014 report 6 The Central City at a glance

Doing business in the Central City 8 Working in the Cape Town CBD 02 9 Online Business Survey results 10 Spotlight on the publishing sector 11 Update on the financial sector 12 Update on the film & TV sector 13 Events and conventions 14 Commercial property in the CBD 15 Introducing ECAMP 16 Investment update on developments in the CBD 18 Daytime User Perception Survey results

Living in the Central City 21 Residential property trends 22 Online Residential Survey results 03 24 The CBD’s burgeoning nighttime economy 24 Nighttime User Perception Survey results 24 The business of visitor accommodation in the CBD 25 First Thursdays Survey results 26 Retail in the Central City 27 Retail employment density and numbers study

Connecting the Central City to the rest of the world 28 Economic partnerships in the 04 Cape Town CBD 29 Assessing the impact of World Design Capital 2014 30 The economy of creativity, the arts and knowledge 31 Creative Cape Town Survey 32 Transportation in the CBD 34 A low-carbon strategy for the Central City and surrounds 36 In conclusion: future reports 37 Acknowledgements & credits South Arm

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dissemination of information. This LOOP DE WAAL in review already available as well as the year’s report takes a look at the opportunities that exist. This formed part of the TAU’s New Church Buiten City of Cape Town’s new Economic Setting the trend offering during an Economies of Government Ave It remains the only publication Regions Learning Network trip Areas Management Programme Orphan The State of Cape Town Central of its kind in the country that to Canada, the UK and France to (ECAMP), a ground-breaking Garden Company’s The

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in a series produced by the Cape African downtown. The concept country’s major cities. assesses the market performance ORANGE Town Central City Improvement of a downtown report, however, and long-term growth potential in JUTLAND District (CCID)1 that brings is not new on a global scale The 2013 report also won a 71 business precincts across the together a substantial body and, therefore, since inception coveted Merit Award at the metropolitan region. The database of research into a trustworthy our report has looked to follow 60th annual International holds a wealth of information on Downtown Association (IDA) VREDEHOEK guide to the economic climate the numerous excellent state of the CBD as an investment node, HATFIELD of our central business district downtown reports published by Conference, held in 2014 in and how it stacks up to other ANNANDALE (CBD) – or Central City, as we CBDs across the globe. Ottawa, Canada. The award was areas around the metro region, MILL Capetonians know it. made in the category of Economic which helps to further augment We are pleased that economic & Business Development for the information we collect on a The report is the culmination influencers beyond our CBD “developing successful marketing regular basis. of a year of research and city are also taking note of efforts and strategies that have undertaken by our research the findings contained in this recruited new businesses or As this publication grows from team and the work of many report. Along with the support we improved retention efforts in strength to strength each year, other Central City roleplayers receive for the publication from a downtown.” so too do the vital relationships it who are increasingly prepared enjoys with the many organisations, to share their own economic companies and agencies that are NEK KLOOF data with us to help promote prepared to come on board to share GARDENS DE WAALPARK collective insights. With three their resources. There are far too years now behind us, the report many to thank on this page – that is proving to be an invaluable is why there is a very large list of TAMBOERSKLOOF tool for the collection and acknowledgements at the end of KLOOF analysis of market intelligence, this report – but what we as the vital for any downtown that publishers can offer upfront is looks towards retaining an enormous vote of thanks existing, and attracting new, and an opportunity to express investment interest. our gratitude. ORANJEZICHT

TO TABLE MOUNTAIN If the Cape Town Central City & CAMPS BAY benefits from this publication, the entire city and indeed the province 1. City improvement districts – or CIDs – are the South African equivalent of entities found and South Africa as a whole benefit abroad known predominately as business Tasso Evangelinos Rob Kane as well, and we all grow a dynamic Chief Operating Officer Chairman of the Board improvement districts (BIDs). and sustainable economy together. Central City Improvement District Central City Improvement District South Arm

The State of Cape Town Central City Report: 2014 – A year in review | 3 V&A WATERFRONT

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BUITENKANT ORANGE JUTLAND THE CAPE TOWN CENTRAL CITY AND SURROUNDS VREDEHOEKThe Cape Town Central City is also

HATFIELD ANNANDALE known as the Cape Town CBD and MILL lies within an area managed and promoted by the Cape Town Central City Improvement District (CCID). Its geographical boundaries, as they pertain to this report, are identical to those of the CCID and these are indicated above by the broken yellow line. It incorporates an area of 1.6km2 and lies bordered by Table KLOOF NEK KLOOF Bay Harbour (the Port of Cape Town) GARDENS DE WAALPARK to the northeast and by the suburbs that, along with the CBD, form what is known as the Cape Town City Bowl TAMBOERSKLOOF – all at the foot of Table Mountain,

KLOOF Lion’s Head and Devil’s Peak. The Cape Town CBD is also where all main transportation links (road and rail) begin in the Western Cape province, including the N1 highway that travels to ORANJEZICHT Gauteng (including Johannesburg) and the N2 highway that travels along the

TO TABLE MOUNTAIN & CAMPS BAY entire southern coast of South Africa to Durban in KwaZulu-Natal and beyond. Cape Town International Airport lies just 19km from the CBD. 4 | 01. Introducing the Cape Town Central City

In 2014/15, the Western Cape’s destination marketing, Accolades for investment, and trade Cape Town in 2014 promotion agency, Wesgro, aims to secure up to Besides being World Design R1.8bn of foreign investment Cape Town Capital 2014, Cape Town was and support 500 local, also recognised globally for a emerging exporters to number of economic and tourism reach new international achievements. markets. in context ++Cape Town was voted the 18th General information on most dynamic city in the world by the US business and technology South Africa, the Western Cape Town in Context of 25 destinations (each with more news website Business Insider than 100 hotels), with a score of Cape province and the Survey for actively facilitating the 8.43 out of a possible 10. Cape Cape Town metropolitan availability of alternative energy Town scored particularly high in Highlights from the City sources to its residents. This was the category of room comfort/ region (the latter of which of Cape Town’s annual based predominantly on the City’s standard (8.54). covers 2 461km²) follows. “Cape Town in Context” solar water heater programme, customer survey2 particularly with respect to ++Winner of the Telegraph Travel skills development and the Awards 2014 as the best city in the A verage rating for overall manufacturing supply sectors that world to visit (third year in a row) performance of City by business: 1 the programme is unearthing. Statistical information ++Number 1: New York Times out of 3.5 5 ++According to the South African 52 Places to Go in 2014 G DP & GGP Auditor-General, the City of Cape of businesses said that, S outh Africa’s Gross Domestic 88% Town was the only municipality in ++Number 1 Holiday Hotspot: overall, the City’s performance the Guardian’s Top 40 destination Product (GDP): the country to achieve a clean audit was good, very good or excellent. round-up R2 013.212 billion – its 10th unqualified audit to date. The Cape Town metro accounts for ++Top City in Africa and the Middle Western Cape’s GDP: 91% of businesses rate the 70% of the overall total expenditure East in Travel + Leisure’s annual City’s performance in fulfilling for all municipalities in the Western online poll R304.368bn its role as a provider of municipal Cape. services as good, very good or ++Condé Nast Traveler Readers’ Cape Town’s Gross Geographic excellent. ++The City’s Valuations Department, Choice Awards for 2013: one of the Product (GGP): which forms part of its Finance Top 25 Cities in the World and one 11.3% Directorate, was recently named of the Top 10 Cities in Africa and (2nd highest of the national GDP) 87% of businesses rated their level of trust in the City Thomson Reuters’s (Manatron) the Middle East Johannesburg (highest): 16.8% Jurisdiction of the Year 2014. eThekwini (3rd highest): 10.9% as fairly strong, very strong or ++One of CNN World’s 10 Most extremely strong. This is the highest award that a jurisdiction, such as a municipality, Loved Cities C ape Town’s highest Gross can receive. The City competed Value-Added (GVA) sectors in Average rating for overall ++Number 3 in the Lonely Planet’s against more than 1 000 other its economy are performance of City by residents: Best in Travel 2014 Top Cities Thomson Reuters government out of Finance: 2.9 5 customers across the globe. ++Number 16 in the Top 25 Travelers’ 36.8% Choice World Destinations Manufacturing: 16% 73% of residents said that, ++According to the City of Cape Awards overall, the City’s performance Town’s Economic Performance T rade: ++Africa’s Leading Meetings & 15.8% was good, very good or excellent. Indicators for Cape Town (EPIC) report, during 2014 the Western Conference Destination, World Population rates Cape economy recorded a positive Travel Awards 2013 75% of residents rated quarter-on-quarter growth rate S outh Africa: their level of trust in the City ++Table Mountain: one of the of 2%, as opposed to the rate at a New7Wonders of Nature 54 002 000 as fairly strong, very strong or national level. extremely strong. ++WWF’s Earth Hour Capital 2014 Western Cape: ++The annual Travel Smarts study released by global hotel-booking ++Muizenberg hailed as one of 6 116 300 2 www.capetown.gov.za/en/Pages/201314 site Agoda.com revealed Cape National Geographic’s World’s Cape Town: customersurveycontinuesinservicedelivery.aspx Town to be 2014’s top overall out 20 Best Surf Towns 3 861 000

Unemployment & employment Cape Town’s weather Source: the Climate Information Platform, hosted by the University of Cape Town: www.cip.csag.uct.ac.za Cape Town’s unemployment rate: Average temperatures per month (°C) Average rainfall per month (°C) 25.5% (below national average of 35.6%)

Cape Town’s contribution to national employment: ighs

(2nd highest in H 10% 26,4 27 25,8 23 20 18 17,5 17,6 19 21,8 23,6 25 the country behind Johannesburg, 12.4%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 16 15,9 14,5 12 9,9 8,2 7 7,6 8,9 10,9 13,2 15,2

Literacy s

Cape Town’s functional literacy rate: ow

L Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 92% (above national average 12.4 12.8 11.9 51.1 76.1 93.3 88 78.9 42.1 33.9 23.4 14 of 82.3%) Averages: 1 Source: City of Cape Town Economic Temperature: Days sunshine/year: Monthly rainfall: Total yearly rainfall: Performance Indicators for Cape Town (EPIC) report, Q2 (April-June) 2014 17°C 283 44.82mm 537.86mm The State of Cape Town Central City Report: 2014 – A year in review | 5

E xecutive Summary What’s in the 2014 report?

Since the publication of the firstThe State of Cape Town Central City Report, the information that the research team has accumulated has grown substantially.

This growth has been made possible results of a new dipstick survey only through the increasing that looks at the growing popularity participation of the public and of First Thursdays, the CBD’s own private sectors who have been after-hours “art walk” on the prepared to contribute information city’s streets, which is increasingly towards various surveys and data- being supported by the public and sharing exercises. The value of open other businesses. data for trending purposes is clearly evident in this report: the document Movement in commercial and is today used by investment decision residential property is once again makers to consider the Central City tracked to provide better insight on as a new or enduring location, as long-term market trends. New to well as by interest groups eager to this report is an assessment of retail track and trend the growth of the employment figures and tenant CBD’s economy from year to year. occupancy rates of retail districts in the CBD, helping to showcase This year’s report continues to the economic contribution of this trend important results as they thriving sector. We also continue have been accumulated annually, such as those that demonstrate to track the financial services and business confidence and resident film & TV sectors in the CBD, satisfaction. The popularity of the and have expanded our spotlight CBD as an eventing and convention focus to include the CBD’s location is growing and is looked at significant publishing industry once again in this report, as are the for the first time. public and private entities involved This report also introduces the City in the creative industries and the of Cape Town’s new groundbreaking knowledge economy – although research and policy support the full benefits of the city’s World initiative, the Economic Areas Design Capital 2014 status will Management Programme (ECAMP). only be assessed during 2015 (for ECAMP is a decision-making inclusion in the next report). planning tool that can guide the The report once again contains spatial targeting of area-based results from of the Online Business interventions, and share the City’s Survey and the Online Residential information with the private sector. Survey as well as the on-the- ground Retail Opinion Surveys. Overall, this report is a testament This past year also saw the repeat to the kinds of knowledge and of the biennial on-the-ground User collaboration that come about Perception Survey for both daytime through the sharing of open data, and nighttime, which means we can participatory engagement and now draw comparisons between the partnership-driven research. latest results and those obtained We hope that the facts, figures originally in 2012. To showcase the and trends here help you better economic potential of citizen-led understand the CBD as a place to do events, we have also included the business, live in and visit. 6 01. Doing business in the Central City

Cape Town’s Residential space in the CBD Total residential properties Average year-on-year property sale sold in the CBD: price in millions of rands:

Central City 200 191 163 150 132 By the numbers 2012 2013 2014 R296.4 100 Generated property Total current value of Central City Number of companies operating rates in the CBD in property (in billions of rands) in the Cape Town CBD: mILLION 50 millions of rands: Increase in average sale price of Estimated total value of properties sold in the Central City 24 23.72 8.4% 23.69 residential properties sold from 2013 to 2014 in the CBD during 2014 2012 2013 2014 155 151 216 23 2012 21.7 22 104 21.5 CBD & Retail CBD & Culture +23% 93 % 88 72 21 of companies 59 are happy with the 266 CBD as a location 93% 8 070 2013 2011 2012 2013 2014 to do business 22 6 Average retail Estimated CBD Museums in the Theatres operating occupancy rate street-side retail Cape Town CBD in the Cape Town 155 Healthcare & cosmetic services in the CBD employees CBD 151 Specialised services R360 5 696 582 104 Architecture & engineering 2 797 90% 85% Estimated retail Million 254 Jobs generated by Companies offering 88 Finance & banking services 565 1 146 Retailers that feel Retailers satisfied employees working Number of creative Jobs created by the Artscape’s 2014 the financial services legal services in the 72 Travel services they’ll still be open with the CBD as a within the CBD’s industry businesses Design Indaba at contribution sector in the CBD Cape Town CBD 59 IT & communication services in a year’s time business location shopping centres in Cape Town’s CBD the CTICC in 2014 to SA’s GDP

Office space in the CBD CBD & the CTICC CBD & Transport 83 93 86 71 12% 7% Improvement Improvement 81 R3.1 2.85m 33% 36% 1.025 59 from 2013 from 2013 86.6% Number of people who 2014 of office space in the Million BILLION boarded MyCiti buses Cape Town CBD is Square metres of GDP generated by CTICC for SA in 2013/14 with in the CBD at all 22 9% 22% occupied office space in the CBD 2012 2012 31% being made through induced tourism stops & stations in 2014 2013 2013 2014 2014 535 122 750 MyCiTi Satisfaction 60 % 90% Total number of 7 649 1.2m Average daily number Businesses rating the 6.8 bN Excellent Satisfaction with doing events hosted of people who take the of the metro region’s of A-Grade office CBD’s public transport Jobs sustained Estimated number of Total rands spent Good business in the CBD Premium-grade office space in the CBD as “Good or excellent” at the CTICC throughout visitor days contributed train to & from on Cape Town’s Poor/Fair space is in the CBD is occupied during 2014 South Africa to the local economy Cape Town station MyCiTi system Don’t Know

Users who feel the CBD Education in the CBD CBD & Government CBD and its people is an inclusive space: CBD’s public events 89% voted ( figures exclude the CTICC) 71% think the 82% feel Cape Town 82% 28 CBD’s economy safe during as the best Highest number is growing the day CBD in SA of events in 45 1 648 21 398 361 064 one month (Feb) Educational Educational staff Total number of Estimated number of people who Institutions in working in the government employees Daytime users attended public events in the CBD the CBD Cape Town CBD working in the CBD during 2014 663 144 76% 73% shop at Total visitors 3 530 9 162 informal 85% feel to the CBD’s 108 91 28 156 traders in safe at 110 30 087 Central Library Estimated number of Estimated number of the CBD night Permitted number Average monthly attendance part-time students full-time students Average number of of public events for events hosted in the during 2014 Government service Government oces in the CBD in the CBD oces in the CBD open to the public patrons served daily Evening users during 2014 Central City T heThe S tateState of of Cape Cape T ownTown Central Central City City R eport:Report: 2014 2014 – –A Ayear year in in review review | 7

Cape Town’s Residential space in the CBD Total residential properties Average year-on-year property sale sold in the CBD: price in millions of rands:

The business of outsourcing processes Business Process Outsourcing (BPO) makes up a significant portion of the private workforce in the CBD. The following figures have been provided by the BPeSA Key Indicator Report 20142.

Overall industry figures in the Western Cape 02 ++ The BPO/contact centre industry has grown by approximately 8% over the past year, increasing from 38 000 to 41 000 jobs and DOING BUSINESS generating around R9 billion to the provincial GDP. - An estimated 3 400 jobs were IN THE created through offshore investment in 2014. central ++The Financial Services sector accounts for the highest proportion of agents in the city industry, at 41.7%. The next five highest are: - Retail: 14.9% - Telecommunications: 12.5% - Legal: 7.2% - IT: 6% - Transport: 4.2% ++Telecommunications is responsible for the majority Working in the Cape Town CBD of international outsourced business, with 37.3% of the Cape Town holds a solid market, up 23.2% from 2013. position in the Jones Lang Breakdown of companies in the CBD LaSalle1 Cities Research ++International markets - The UK market is responsible Center’s Global300 While there has been a slight decline in the numbers of businesses in the for 63.3% of offshore business Report: The new CBD comparatively over the past two years, something which could be in the Western Cape, a 1.9% attributed to the tightening of the global economy, the proportion of the increase from 2013. commercial geography of sectors remains relatively steady. Please note that retail as a sector is cities (November 2014), excluded from the list below. It is instead dealt with separately on pages - USA: 11.5% (up from 8% which quantifies what 26-27 as it makes up a huge portion of CBD businesses. last year) impact the world’s leading - Australia: 9.4% (up from Sector 2011 2012 2013 2014 8.5% last year) cities have on the global Travel services 71 68 77 72 - Germany 4.9% (down from economy. 7.3% last year) Architecture & 71 73 75 (architecture) 70 (architecture) 1.9% (down from engineering services 34 (engineering & 34 (engineering - France: related) & related 2.9% last year) The report, which brings together the most impactful 300 cities, Financial services & 81 90 88 88 ++88.2% of offshore work in the accounts for more than one third banking Western Cape is done in English. of the world’s economy, nearly three quarters of global real Information & 89 87 67 59 ++86.2% of BPO/contact centre communications estate investment and over 80% employees are employed on technologies a permanent basis, up 4.7% of the world’s prime office stock. (including call centres) According to the report, out of from 2013. the total of 300, Cape Town’s Specialised services 134 164 167 151 In the Cape Town Central City Commercial Attraction Index is Medical, health & beauty 108 175 202 155 102, its Real Estate Investment services and facilities ++ 10% of employees in the BPO/ stands at 139, and its Economic Legal services 552 594 592 582 contact centre industry in the Size is 183. Western Cape live in Cape Town’s This puts the employment and CBD (down from 19% in 2013 – this has been attributed to the business environment of the 1. JLL Cities Research Center is a financial Cape Town Central City into Government and professional services firm specialising in demand for accommodation and sharper focus, especially when services in the CBD commercial real estate services and investment the resultant rise in rentals and management. It has over 52 000 employees sales prices). one understands that the area 108 different government across 200 corporate offices worldwide that accounts for approximately 25% services offices are in the CBD. serve the local, regional and global real estate ++The CBD and immediate of the city’s entire economic needs of corporates and investors in more than 91 of these are accessible 75 countries. www.jll.com surrounding area is home to 15 contribution and provides a place to the public. international BPO companies, of business to just over 30% of 21 398 government employees 2. Business Process enabling South Africa which employ 65.8% of employees the city’s entire workforce. work at these offices. (BPeSA) is the national investment arm in the international BPO sector. On average, 28 156 users of the BPO industry in South Africa and are served each day. is committed to driving offshoring to the ++An estimated 12 000 BPO country. Its offices are based in the Cape employees work in the CBD. Town Central City. www.bpesa.org.za The State of Cape Town Central City Report: 2014 – A year in review | 9

Tenant satisfaction A growing majority of CBD business owners feel they are being looked Results of the annual after as tenants from a spatial point of view. ONLINE BUSINESS 2013: 65% agreed SURVEY 2014: 87% agreed

For the past three Number of years located in l evel of satisfaction about Moving around the CBD years, the CCID the CBD being in the CBD for meetings has conducted Comparative year-on-year figures Nine out of every 10 businesses ++47% of people very seldom, or online surveys with show trend towards longevity. in the CBD feel satisfied about ever, leave their offices to go being here, and the segment has to meetings. Less than one year stakeholders in the increased consistently. 2012 12 ++40% of people reported leaving CBD to determine ++2012: 81% satisfied 2013 their offices 2-3 times per week the perceptions of its 4 ++2013: 86% satisfied 2014 0 for meetings. business community. ++2014: 93% satisfied 1-3 years ++13% of people reported leaving Conducted in August/ 2012 19 Rating the state of their offices at least once a day. September, the cleanliness in the CBD 2013 23 ++Of the 53% who go to meetings 2014 2014 survey realised 16 A positive trend continues year on 2 times a week or more, a sample of 235 year, demonstrating that the effort - 44% go by private car (up from participants (equating 4-10 years of keeping the CBD clean is being 36% last year). recognised and appreciated. 2012 32 53% go on foot (down from to a 13.3% response Good Very good/ - 2013 35 63% last year). rate, over the 2013 Excellent 2014 30 response rate of 2012: 43% 30% - 3% go by public (up from 2013: 36% 41% transportation 13.2%). A selection of 11-20 years 1% last year). 2014: 36% 47% 16 highlights follows. 2012 16 Rating the availability of 2013 Rating of safety and public transport 2014 30 security at street level As the MyCiTi bus rapid transit More than 20 years Positive sentiment around this is growing with each survey. system continues to roll out, 21 business perception about the 2012 Good Very good/ availability of public transport 2013 24 Excellent R300m has steadily improved, with 97% 2014 23 2012: 42% 21% agreeing that the R250m of respondents 2013: 35% 30% system contributes to making the 2014: 37% 35% Type of business R200m CBD more accessible. Good Very good/ 250 000 57% of respondents were owners U rban renewal R150m Excellent of their particular enterprise and There has been a significant ++2012: 34% 25% 72% indicated that they had a R100m ++2013: 37% 34% direct say in issues such as the increase in the numbers of 200 000 2011 2012 2013 2014 ++2014: 30% 53% location of the business. respondents who agree that urban renewal implemented in the CBD ++Sole location of business: 50% has resulted in renewed interest in 150 000 ++Head office: 23% the area as a business destination. ++Branch: 12% ++Regional office: 10% Respondents who agree 100 000 ++Franchise: 5% 69% 2012 2013 72% 2014 50 000 82%

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BUS STOPS BUS STOPS STATIONS STATIONS ALIGHTING BOARDING BOARDING ALIGHTING

More than 20 years 10 | 02. Doing business in the Central City

Spotlight on the PUBLISHING SECTOR The business of media services they offer (more than one has for many years made could be selected). a strong contribution to Engages in general book publishing the Cape Town economy, 1 in particular the numerous Performs public relations national and international 1 Supplies financial data publishing houses dealing 1 to market professionals in books, newspapers, electronically magazines and online Facilitates ecommerce content that have their 1 operations (online shopping sites) and ecommerce services head offices in the CBD. to SMMEs2 This past year saw the undertaking Provide printing and distribution of the first CBD Publishing Sector 3 services to the media & Survey, which aims to generate advertising industry levels of data specific to this Design content for media industry in the Central City – the 5 companies results of which will also help to Develop content, design, print, establish a baseline of financial 8 publish and distribute own intelligence to track and trend this publications sector as the survey is repeated over the coming years. Provide media content such as 8 articles (eg for syndication), The 2014 survey was designed advertising or journalist services to gauge the economic impact on the Central City primarily of those companies that offer the EMPLOYMENT ANALYSIS PRINTED COPIES ANALYSIS READERSHIP full spectrum of book, newspaper, The 10 publishing houses The total number of printed copies Total readership for the magazine and online publishing. surveyed employ 10 752 people. of the various publications is 1 publications produced by survey The survey was taken by 10 of These are broken down into participants is an estimated the 16 relevant publishing houses freelance, permanent/contract and 11 330 408. based in the CBD, and the results part-time employees as follows. - 5 615 991 are dedicated to 57 548 896 readers. below illustrate some key findings consumer publications (including that enable a better understanding PART-TIME STAFF Freelancers community newspapers). TAKIA NG C RE OF THE PAPER of what the publishing economy 600 3136 - 5 714 417 are customer TRAIL: LOOKING AFTER THE looks like, how people relate to ENVIRONMENT it, and the benefits to the CBD of publications. 6% having a strong publishing sector. 29% 91% of survey respondents have a 1 239 819 paper-recycling initiative in place. It is also hoped that, in the future, more publishing houses will community newspapers 100% of respondents indicate that participate in the survey, which will 65% 4 376 172 they have a paper-saving initiative help provide insight into the total Day Night Day Night in place. Tertiary economic contribution of this 20.1 29 34 33.3 CONSUMER publications sector to the CBD’s media economy PERMANENT/ 64% of publishing houses also and strengthen its value as an CONTRACT STAFF 5 714 417 occupy buildings with energy investment node. 7016 saving initiatives. Some 78.5 69.3 57 61.6 high CUSTOMER publications school & matric

3.5 Other P ublishing services 1.5 Consumer vs customer titles 1.4 1.7 5.5 3.6 None/ The CBD’s publishing houses Primary 2012 2014 school focus mainly on the development, The 10 publishing houses that - 32% of consumer DayTypesNight of publicationsDay Night produced Tertiary design, printing, publishing and participated in the survey publications are newspapers, 20.1 29 34 33.3 distribution of publications, largely annually produce: a number of which are CUSTOMER customer and consumer magazine community newspapers 36 400 book titles and titles and newspapers, with specific to a small, targeted Some 135 individual consumer and 78.5 69.3 57 61.6 high some also diversifying into book geographical area. school customer publications. 28.8%& matric publishing. Content generation, - 68% of consumer particularly for external media Of the latter, the two main publications are magazine- clients and customer publications, 3.5 Other categories are: type publications. 1.5 makes up a significant amount of 1.4 1.7 5.5 3.6 None/ Primary the work undertaken overall by Consumer publications 71.2% school Customer publications 2012 2014 CBD-based publishing houses, 89 consumer titles (for the 36 customer titles (also known making them a one-stop shop for general public) were listed as custom publications or content CONSUMER media creation and generation. by the survey’s respondents. marketing) are produced to target 89 These are the responses from the These are divided as: a particular brand’s customers. publishing houses in terms of the

1 Including Media24, Africa’s largest publisher, printer and distributor of magazines and related products as well as its largest newspaper publisher. 2 SMME stands for small, medium and Media24 is also the print arm of the South African media company Naspers, and also includes the internet activities of the 24.com collection of web portals. micro enterprises.

Day Night Day Night Tertiary 20.1 29 34 33.3

Some 78.5 69.3 57 61.6 high school & matric

3.5 Other 1.5 1.4 1.7 5.5 3.6 None/ Primary 2012 2014 school The State of Cape Town Central City Report: 2014 – A year in review | 11

EMPLOYMENT Out of a total of 5 696 employees working at the institutions that responded to the 2014 survey, there are: Update on the 5 178 permanent employees and Fiiananc l 518 sector temporary staff.

The financial sector NUMBER OF DAILY TRANSACTIONS SERVICES OFFERED is one of the CBD’s Of the total number of institutions that responded, respectively 42 (in strongest economic 2013 2014 2013) and 47 (in 2014) were also prepared to answer questions around the number of daily transactions they undertook. The latest results reveal drivers in terms of Personal loans 36 32 a trend towards an increasingly healthy spread of small, middle and large employment, global Investment 15 28 transaction levels. outreach and growth. banking International 19 24 10 7 11 2 The CCID’s annual Financial 5 7 Sector Survey, conducted for banking & foreign 2 2 exchange 11 the first time in 2013 and for the 67 second time in November 2014, Retail banking 8 22 81 continues to build a strong base Micro finance, 19 21 of knowledge about the size of cash & small loans the sector in the Central City and the ways in which it continues Business/corporate 10 20 to develop. banking The survey is sent each year to Vehicle & asset 9 17 all financial institutions in the finance % in 2013 % in 2014 CBD. In 2014, 88 institutions Public-sector 14 16 50 - 250 250 - 500 500 – 1 000 1 000 – 3 000 3 000 – 5 000 > 5 000 were approached – 68 responded banking (a response rate of 77%), nine of which are categorised as regional Home loans 9 16 I NTERNATIONAL PRESENCE BANKING ON A SUSTAINABLE ENVIRONMENT or provincial head offices. SMME banking 7 15 60% of institutions surveyed in When asked what measures Private bank 6 14 2014 serve only the South African market. The remaining 40% institutions take to be more Debt management 9 12 engage in international business to environmentally sustainable, the GEOGRAPHIC SCOPE following were chosen (more than varying degrees. 37% of financial institutions Trusts 6 12 one could be selected). surveyed service the entire Corporate 5 The following graph shows the % recycle paper. Western Cape province; 9% administration/ degrees of international focus in 37 reported being a national % are working towards human resources grey. Of the 61 institutions that office or a bank’s headquarters. (added in 2014) responded to this question, 17 creating a paperless This means the majority of the numbers on the left of environment. Bridging finance 2 financial services institutions each row reflect the number switch off with operations in the Cape (added in 2014) % of institutions who selected a 12 equipment at night. Town CBD work beyond its particular percentage ratio. boundaries, linking business Noteworthy is the growth in % are using eco-friendly here to financial growth across 11 printing cartridges investment and international Client base – local vs the province and the country. banking as well as public sector and/or recycling. international business banking. % are using email to Geographical area served by financial institutions 30 11 communicate with clients 2 (instead of paper). 7% serve 9% are NUMBER OF DAILY CLIENTS % do double-sided a part or 2 national region of the SERVED 6 printing. offices or Western Cape. 4 headquarters 2013 2014 1 % have installed motion of a bank. 10 – 50 78% 69% 3 sensor lighting. 50 – 250 14% 17% 5 % recycle batteries. 250 – 500 4% 10% 4 3 500 – 1 000 2% 2% 3 Physical energy efficiency 1 500 – 3 000 2% 2% 3 The following responses were Noteworthy is that financial 2 received when asked: “Does service organisations in the CBD 2 your building have energy-saving institutions serviced more clients each day in initiatives?”

of 1 2014 than in 2013, particularly 2013 2014 in the 50 – 500 clients per day 1 Yes 34% 44% 37% serve 47% serve category. umber N 1 the entire the Cape Town No 66% 51% Western Cape. Central City. % Local % International BUSINESS BUSINESS Not sure 0% 5% 12 | 02. Doing business in the Central City

Cape Town Film Update on the Studios FILM & Located 35km from the CBD, in ++Shooting on location in SA and Faure, this is the first custom-built, conducting post-production with Hollywood-style studio complex TELEVISION a QSAPPE3 in SA of R1.5m, the of its kind in Africa. Its facilities incentive is an additional 2.5% (ie include: 22.5%) of QSAPE and QSAPPE. If The largest, permanently the overall rises to R3m or more, ++ Sector installed Digi-Green screen the incentive in turn rises to 25%. (45mx15m) in SA. ++Foreign post-production with 2 000m2 of fully equipped Profiled in this report for QSAPPE of 1.5m garners an ++ F ILM & TV’S ECONOMIC VALUE TO production offices (boardrooms, incentive of 22.5% of QSAPPE, the first time in 2013, the THE SA ECONOMY open-plan offices, kitchens and while R3m and more raise the film & TV sector continues accounts offices). ++ Contribution of feature films to incentive to 25%. to contribute strongly to the SA economy: R3.5 billion ++7 000m2 of soundproof stages The incentives currently apply over four buildings. the local economy. ++Contribution of film to SARS: to feature films, TV movies and From the broadest terms in respect R60 million drama series, documentaries ++Fibre-optic network connectivity and animation. The DTI is in the to its worth to the Western Cape ++Fulltime equivalent jobs: 25 000 and the ability to transfer dailies province (and including the Cape process of adding digital content to any part of the world. Economic multiplier effect in and gaming. Terms and conditions Town Film Studios – see box) ++ 2 to the streets of the CBD – the broader economy: 2.89 (national) regarding eligibility, payment ++2 000m of stage support latter being used extensively as of rebate, application forms including star rooms, AD and a location for the international, ++Over five years, the industry has and guidelines can be found at wardrobe offices, makeup and multi-awarding USA series grown at 14% per annum. www.locationscapetown.com/ change rooms. Homeland1 – the film & TV sector incentives.asp. FINANCING INCENTIVES ++A deep sea tank: a 5 million-litre is flourishing. Here follows a concrete water tank inserted in a brief update on the latest The national Department of Trade 6m-high elevated platform with During 2012/13 (the latest developments, and information & Industry (DTI) currently offers rim flow on three sides. data available), the DTI that would be of benefit to anyone two rebate incentives to promote approved the following thinking of bringing a production the South African film production ++A beach tank: 5m-litre beach projects for its incentive into the area. and post-production industry. tank with natural sea sand; can scheme: accommodate wave machines FIVE GOOD REASONS TO FILM ++The first is to attract foreign- + 48 South African productions (deep sea and beach tanks are based productions to shoot on linked, which can simulate high IN THE CENTRAL CITY (AND + 10 co-productions SOUTH AFRICA) location in SA and conduct post- and low tide). production activities here. + 12 foreign productions 1. Favourable exchange rate ++Backlot sets that include a + 1 post-production 2. Financing incentives, such as the ++The second is aimed at assisting Caribbean island, Robben Island “up-to-35% Department of Trade South African film producers in + 689 shooting weeks were and a township set. the production of local content. recorded across all categories and Industry rebate scheme” (see For info visit www.capetownfilmstudios.co.za. next column) of the film & TV production With regard to the first – incentive, up from 559 in 3. Stunning and easily adaptable foreign-based productions – 2011/12. locations the incentives are as follows. In a recent + 89 claims, to the value survey conducted 4. Good weather ++Shooting on location in SA: the of R258.2m were paid, 2 among South Africa’s 5. An abundance of production and incentive is 20% of the QSAPE supporting 75 967 actual jobs. animation industry, it post-production facilities, crew with no cap. was revealed that and on-screen talent 6. Competitive film tariffs and user 63% charges for filming to ensure that of those involved in this the city remains an attractive option field work in the in terms of production costs – Western Cape. offered by the City of Cape Town.

S outh Africa has co-production treaties with the following countries: Canada, Italy, Germany, the UK, France, Australia, New Zealand and Ireland

1 Season 4 of the series was shot in Cape Town, with the Artscape Theatre Centre (as the US Embassy), among other CBD venues, being used extensively. Season 5 has also been scheduled for shooting in Cape Town.

2 Qualifying South African Production Expenditure (QSAPE)

3 Qualifying South African Post-production Expenditure (QSAPPE) On location in Long Street for a scene from director Sean Penn’s movie The Last Face starring Charlize Theron and Javier Bardem. The State of Cape Town Central City Report: 2014 – A year in review 13

Events & Conventions

As it gains in popularity In 2014, Design Indaba: ++ The total economic impact ++Sustained 7 649 direct and averaged to be around R35.85m indirect jobs throughout SA. as a business and lifestyle ++Contributed R385.2 million against the City spend on the 3 destination, so too does to the national GDP, of which event of approximately R2m. ++Achieved 78% BBBEE the Cape Town CBD grow R201.9m was made up of procurement, up by 6% from 72% business orders. (Since 2009, it ++Visitors numbers in the previous year. as an events destination. has contributed R1.7 billion to the - 2012: approximately 80 000 ++Made the following energy savings: There were a total of national GDP.) attended the Adderley Street 645 events during 2014, Night market. - 17.3% electricity saved per ++Contributed R126.8m to the delegate since 2012 ranging from those held Western Cape GGP. - 2013: an estimated 217 602 - 85% of total consumables in public spaces to those attended the revamped ++Created 571 indirect and 575 Summer Market. recycled at the CTICC. direct jobs, totalling 1 146. - Drop of 43% in water C ape Town International consumption per delegate C ape Town International Convention Centre (CTICC) According to the City’s Events since 2011 Jazz Festival Office, and just within the CBD’s In 2013/14, the CTICC: - A drop of 10.3% in the carbon The 2014 event, on 28-29 March, footprint since 2012 public spaces, an average of ++Generated R2.8bn for the Western 30 087 people attend events was the 15th. It is the largest Cape GGP. Of this, R853m was ++Saved R1.6m on utility budget each month. The busiest month is annual music event of its kind made up by induced tourism. during the year under review February, with 28 events in total, in sub-Saharan Africa and through energy-saving measures. and the quietest November, with maintains a 50/50 split in its lineup ++Contributed R3.1bn to the 6 events. Cape Town is becoming between local and international national GDP for 2013/14, up ++Increased in total revenue by a serious contender among South performers. It also runs a corporate from R3bn the previous year. 11.4%, up from R154m the African, African and indeed social investment programme Of this, R974m was made up by previous year to R172m this year. southern hemisphere cities as a concurrently with the festival induced tourism. hosting destination. that incorporates training and ++achieved a 25.6% increase in development. ++Generated R291m of tax revenue. top-line revenue over the past ++Brought in 1.22m visitor days two years. Design Indaba Conference The 2014 festival attracted: to the local economy: based on & Expo1 ++An attendance of 37 500, the latest CTICC delegate survey, Top five exhibitions by attendance including individual and Dates held in 2014: 25 550 delegates attending conferences over the past year corporate tickets sold. 26-28 February (conference) and 7 900 at the centre typically stay in Baba Indaba 28 February – 2 March (expo) ++350 accredited media. Cape Town or elsewhere in SA ++16 festival sponsors. for one and a quarter days longer attendees Design Indaba has become one than the duration of the actual 42 961 of the international creative ++36 vendors and exhibitors. event they’re attending. Decorex Cape Town industry’s leading annual events. It also: Firt held in 1995, it hosts around - Induced tourism by events 42 900 attendees ++Generated R555.3m for the held at the CTICC resulted 40 speakers and 2 500 delegates Design Indaba Expo representing the full spectrum of Western Cape GDP. in approximately 471 000 international tourist days. the creative industries. ++Created 2 723 jobs: 12% direct 42 077 attendees and 88% indirect. ++Enjoyed total foreign exchange The accompanying Design Old Mutual Two Oceans earnings of R1.13bn, rising from Indaba Expo attracts over Marathon Expo R1.08bn in 2012/13. 40 000 visitors and provides an City of Cape Town Summer Market attendees international commercial and ++Contributed R1.55bn to indirect 40 000 marketing showcase for the Originally known as the Adderley household income, up from Cape Homemakers Expo South African design community. Street Night Market and held R1.5bn in the previous year. Design Indaba also embraces a during the last two weeks in 37 769 attendees multi-tiered year-long programme December, this event was upscaled ++Hosted 535 events (target was 500): and moved in December 2013 to - 33 international conferences that incorporates other events as 3 BBBEE refers to Broad-Based Black well as opportunities of support, The Company’s Garden. The impact - 28 national conferences Economic Empowerment, initiated by the education, business development of the 2013 Summer Market (the - 14 exhibitions South African government to distribute wealth and training for the design latest to be evaluated) has been - 17 trade fairs across as broad a spectrum of previously 2 disadvantaged South African society and community. estimated to be as follows . - 53 banquets businesses as possible. Falling under national - 40 special events government’s Department of Trade & Industry 1 Source: Design Indaba Economic Impact 2 Source: City of Cape Town Department of - 350 other (including meetings, (DTI), it is governed by the BBBEE Amendment Study 2014, Interactive Africa Tourism, Events and Economic Development, events, and film shoots) Act, 2013. For more visit www.thedti.gov.za/ December 2014 economic_empowerment/bee.jsp 14 | 01. Doing business in the Central City Vacancy rates office space in Cape Town’s CBD

PP GRADEGRADE A GRADE B GRADE C GRADE

40%40% 35%35% 3o%3o% 25%25% C OmmerCIAL 20%20% 15%15% 10%10% PROPERTY 5%5% 0%0% JUN JUN JUN JUN JUN JUN DEC DEC DEC DEC DEC MAR MAR MAR MAR MAR MAR JUN JUN JUN JUN JUN JUN DEC DEC DEC DEC DEC SEPT SEPT SEPT SEPT SEPT SEPT MAR MAR MAR MAR MAR MAR SEPT SEPT SEPT SEPT SEPT SEPT in the CBD 20092009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014

The Cape Town Central This Foreshore, reclaimed from City’s skyline is evolving the sea during the 1930s, has Rental rates for office space in Cape Town’s CBD indeed experienced a great Rental rates for office space in Cape Town’s CBD every year and has deal of investment over the PP GRADEGRADE A GRADE B GRADE C GRADE changed considerably past few years. With open land since the first edition of still available and few heritage 180180 restrictions, this area of the 160 this report just two years 160 Cape Town CBD is now proving 140140 ago in 2012. to be of particular interest to 120120 developers looking for greenfield 100 The most recent addition to the investments, which are not 100 skyline and now the tallest building usually readily available in 8080 in the CBD is the 32-storey Portside, established downtowns. 6060 a R1.6 billion joint initiative by 00 Old Mutual and FirstRand Bank Towards the more established JUN JUN JUN JUN JUN JUN DEC DEC DEC DEC DEC MAR MAR MAR MAR MAR JUN JUN JUN JUN JUN JUN DEC DEC DEC DEC DEC SEPT SEPT SEPT SEPT SEPT SEPT MAR MAR MAR MAR MAR that was completed in 2014. and older sections of the CBD, SEPT SEPT SEPT SEPT SEPT SEPT Construction sites incorporating the Urban Development Zone 20092009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 the Cape Town International (UDZ) tax incentive is finding Convention Centre’s expansion traction with developers looking and the new Christiaan Barnard to upgrade existing buildings, The figures above are as provided by SAPOA Memorial Hospital also broke including those which are listed up to the fourth quarter of 2014. The rise in premium vacancies as well as rentals can ground. The latter two are being as heritage (537 sites in total) be attributed to the recent opening of the V alue of property built in the Foreshore area where, and add enormous value to Portside office complex, a development with conservatively, approximately the ambience, character and 32 floors and over 57 000m2 of office space. in the CBD R2.142bn of investment will be popularity of the Central City. These figures are derived added over the next two years from the City of Cape Town’s – R1.224bn of which is private official property valuations investment and R918 million from report and show the overall the City of Cape Town. nominal value of all property in the CBD. Financial year Valuation 2005/06 6 127 450 155 The City of Cape Town 2006/07 6 286 614 046 overall had the 2007/08 5 641 154 410 lowest regional 2008/09 16 937 499 800 vacancy rate overall 2009/10 15 524 368 400 at Q3 October 2014: 2010/11 23 936 631 700 2011/12 21 505 309 946 9.5% 2012/13 21 795 245 667 2013/14 23 692 398 651 2014/15 23 724 605 292

Summary of rentable office area in the CBD (as at December 2014): ++ Premium: 52 000m2 (19 000 available for leasing at an average of R185/m2) ++A: 311 954m2 (33 008 available for leasing ranging from R85 to 165/m2) ++B: 515 535m2 (53 862 available for leasing ranging from R80 to R115/m2) ++C: 145 178m2 (31 711 available for leasing ranging from R47 to R95/m2) The State of Cape Town Central City Report: 2014 – A year in review | 15

The total stock of P-grade offices safety, catchment area, and others. in the entire Cape Town metro is This initiative has been described by Office vacancies in 2 Introducing ECAMP the World Bank as “at the leading 86 600m . edge, globally”. perspective The Economic Areas Management - The CBD thus has Programme (ECAMP) is a This information has been sourced from Tracking both market performance 1 groundbreaking research and policy and the long-term growth potential the SAPOA Office Vacancy Report . 60% of all P-grade office support initiative developed by the space in the metro region. of each business district, ECAMP Here are the South African City of Cape Town and launched offers up-to-date and evidence- national property indicators as of - The CBD’s stock of P-grade in 2014 that tracks and routinely based diagnostic assessment, October 2014: sits at 52 000m2, of which assesses the market performance recommending appropriate area- 19 000m2 was available for and long-term growth potential in based strategies and proposing ++The market is in a similar state to leasing at the time of the 71 business precincts across the practical local interventions. what it was in 2000-2002. SAPOA report. metropolitan region. For Cape Town’s CBD, defined on the ++High vacancy rates (nationally) The total stock of A-grade ECAMP platform as the CBD area are still weighing on asking ECAMP is a decision-making offices in the Cape Town metro is planning tool that can guide the plus the neighbouring East City area rental growth, which remains 2 (much of which already lies within . spatial targeting of area-based in low single digits. However, 1 290 631m the CBD boundaries), District Six although the vacancy rate has interventions, and – through its - CBD’s stock of A-grade: public user interface – share the and De Waterkant, this has immense doubled since mid-2008, there 311 954m2 strategic value. Not only does it show is now an expectation around City’s information with the private The CBD thus has where the business strengths of the possible opportunities for - sector. This helps entrepreneurs and % corporates alike identify area-based CBD lie, but it also shows how the brokers and landlords as the 24.2 of all A-grade investment climate of the Central City office vacancy cycle starts risks and opportunities in 71 business rentable office area in the precincts across the metro region compares to other business nodes. to reverse. metro region. through indicators such as market For more information on ECAMP, visit ++The overall “slowdown” in office performance, location potential, www.ctcs.capetown.gov.za/Ecamp space is made up of the following: - Premium-grade (P-grade): The Urban mid “slow-down” phase CENTRAL CITY HIGHLIGHTS FROM ECAMP - A-grade: late “slow-down” Development Zone The following indicators are among those reflecting phase The Urban Development Zone business intelligence on the CBD as of December 2014. - B-grade: early “recovery” phase (UDZ) is a South African Revenue - C-grade: late “recession” AGGLOMERATION Service (SARS) tax incentive that Location potential phase. However, the vacancies rewards developers/property 10 ++The CBD is rated 5 out of for C-grade have declined at owners with a tax deduction 8 ROOM FOR national level, largely due to a possible score of 5 and is CATCHMENT GROWTH based on a special depreciation 510 number 1 overall of all business 10 10 residential conversions. allowance on investments made precincts analysed. 8 38 8 in either upgrading existing 5 5 ++National vacancy rate of office 3 05 3 properties or building new ++In regards to ACCESS it also rated 10 0 0 10 space: 11.1% 8 3 8 ones within demarcated urban number 1 for public transport 0 0 5 5 3 0 3 ++National inner-city (ie CBDs) areas (including the Cape Town connectivity and operations. 5 3 0 3 5 8 0 3 0 8 office vacancy rate: 14.9% 10 10 CBD). Originally established in Similarly it is rated as being “very 0 0 50 2003 and recently revised, the well located” in terms of distance 3 3 ACCESSIBILITY Inner-city vacancy (15.6%) CRIME 5 5 to regional market nodes, freight 8 83 8 rates are still much higher than incentive will be accessible until 10 10 corridors and gateways. 105 decentralised nodes (9.7%). 31 March 2020. INFRASTRUCTURE8 This, however, is coming closer The UDZ applies equally RISK 10 together, and is being helped by to new developments and Market performance 10 conversions of vacant office space refurbishments, and also As of December 2014, the CBD Rental8 S to residential properties. extends to the residential market scored 3.9 out of a possible score 510 ranging from -5 to +5, reflecting 10 10 At Q3 October 2014, inner-city (the latter of these creating Sales8 38 8 RENTAL a 2.1 increase year on year. The chuM 5 5 GROWTH vacancy rates stood at: opportunities, for example, to 3 05 3 convert vacant C-grade buildings increase was driven mainly by higher 10 0 0 10 8 3 8 - Johannesburg: 17.3% relative rental growth for office 0 0 into the additional residential 5 0 5 Durban: 14.9% 33 0 33 - units downtowns such as the space, and an increase in the extent 5 5 - Cape Town: 13.4% 8 0 3 0 8 Cape Town CBD require). of new non-residential buildings 10 10 0 5 0 - Pretoria: 10.2% completed relative to other nodes. 3 0 3 5 5 In essence, the incentive The CBD was surpassed only by 83 Cape Town Central City, as of 8 8 offers investors who refurbish Century City (5.0). 10 10 October 2014: 105 an existing building the building VACANCY submissions 8 ++Overall CBD vacancy rates in 2014 opportunity to deduct 20% of the For more detail on the exact have shown a decline: refurbishment and upgrade costs description of the indicators, 10 - Q4: 13.4% over five years once the building please go the ECAMP website BUILDING COMPLETIONS - Q3: 13.7% is in use, enabling the owner where a downloadable user manual - Q2: 13.9% to write off these costs over a gives more information - Q1: 14.4% five-year period. Only the initial as to how the composite indicators purchase price of the property relate to the indicators and ++The Cape Town CBD now has sub-indicators. Opportunity 5 26.4% of all P- and A-grade does not qualify for the UDZ Growth office space in the metro (rented incentive. and vacant). This is compared to For new builds, investors The diagnostic on the CBD last year, when the figure stood would be able to write off 20% demonstrates that the area is in a Performance at 24.5%. current phase of cyclical growth of the building costs in year -5 5 one and 8% per annum in the (high performance and potential) 1 The South African Property Owners in the Retail, Office and Composite Association (SAPOA) annually publishes its remaining 10 years for income analytics. This designation applies nationwide Office Vacancy Report. Figures tax purposes. Equilibrium have been obtained from the December 2014 to both the composite picture Transition -5 consolidation report, www.cmsignition.co.za/download/ For more information on the UDZ including (all land uses) and the constituent otential files_1047/SAPOA_Office_Vacancy_Report_ demarcated areas, visit www.capetown. leading land uses respectively P Dec2014.pdf gov.za/en/Planningportal (ie office and retail). Composite Retail Office 16 | 01. Doing business in the Central City

Property 6 Cape Town 9 Southern Sun International Convention Cape Sun Centre expansion refurbishment investment (CTICC East) Location: Strand St Location: Old Naspers car park, Type: accommodation Heerengracht & Status: phase 1 underway – update FW De Klerk Boulevard Sun Gallery conversation Type: convention centre, to 100-bay underground The developments listed on these pages reflect the status commercial, retail and hotel car park; refurbishment of Status: underway – estimated rooms, public spaces and of investments completed during the course of 2014, as well completion end of 2016 exterior as those under construction (including refurbishments) or Developer: City of Cape Town Developer: Tsogo Sun in the planning phase as of December 2014. Investment: R832m Investment: R250m

1 P ortside 4 Atlantic Centre 7 The Towers 10 Touchstone Location: city block of redevelopment phase House Buitengracht, Hans Strijdom, 2: parking expansion Location: Hertzog Boulevard Bree & Mechau Sts Type: commercial rental Location: cnr of Bree & Prestwich Sts Type: commercial rental, retail Location: Martin Hammerschlag Status: underway – to be and owner occupier Way completed 2015 Type: commercial rental underway – Status: Completed Type: parking added to retail Developer: Standard Bank of Status: completion estimated Developer: FirstRand and Status: completed South Africa Old Mutual Properties Developer: Ingenuity Investment: R498m October 2015 Civiblox Investment: R1.6 billion Investment: R69.4m Developer: Investment: R212m 8 N etcare Christiaan 5 177 Bree Street 2 R oggebaai Place Barnard Memorial Location: Cnr of Bree and 11 Location: Jetty St Hospital Cape Town Pepper Sts Type: commercial/offices Location: DF Malan St Type: mixed use Station Status: completed Type: private hospital Status: completed redevelopment Developer: Braamcor Status: underway – to be Developer: Cape Living Investment: R285 million completed end of 2015 phase 2 Developments Developer: Netcare Location: Strand & Investment: TBC Investment: R330m Adderley Sts Type: infrastructure 3 Southern Sun Status: underway – Waterfront completion estimated for Location: 1 Lower Buitengracht Q4 2015 Type: accommodation Developer: Prasa/Intersite Status: completed Investment: R210m Developer: Tsogo Sun Investment: R100m

19 1617 11 16 7 8 15 6 2 1 10 18 3 The State of Cape Town Central City Report: 2014 – A year in review | 17

12 15 Iziko South African M edia24 Centre 1617 Artscape Live 20!20 20 Accor Hotels Museum facade upgrade Location: DF Malan St (also known as T-One) Location: Queen Victoria St Location: Rua Vasco Da Gama Type: Entertainment Location: city block of Type: museum Type: media company offices Status: In planning Buitengracht, Strand, Castle and Progress: underway – addition Status: underway Developer: Western Cape Bree Sts of floors due for completion Developer: Media24 Government Type: accommodation December 2016 Investment: R66m Investment: in 2014, Artscape Status: underway (demolition Developer: Iziko Museums received R45.65m from the began February 2015) Investment: R187m Department of Arts & Culture Developer: Accor Hotels and R14.335m from the Western Investment: R120m Cape Government for capital 16 Thomas Patullo works. It will receive a further 13 W estern Cape redevelopment R86m for 2015. Provincial Parliament Location: Jan Smuts St 21 Beaufort House upgrade Type: office, retail, parking Status: underway (refurbishment) Location: 4 Dorp St and 18 Developer: Accelerate Property The Modern 7 & 15 Wale Sts Location: Bree St Fund (formerly known as government (to Type: government offices Type: Investment: TBC 1 Dock Road) accommodate electricity depot) Status: underway – refurbishment and partial reclad of facade complete Location: city block of Bree, Status: in planning City of Cape Town Developer: Western Cape Hans Strijdom, Loop & Mechau Sts Developer: Government, Dept of Public Works Type: commercial rental (mixed Investment: R120m & Transport use with hotel) Investment: R138m Status: in planning Developer: Ingenuity Property Investments Ltd Investment: R650m (TBC) 14 Twinell Building Location: Long & Loop Sts Type: mixed use – offices & retail Status: underway 19 156 Roggebaai Developer: Kings Cross Properties Location: cnr Christiaan Barnard St, Investment: R120m Martin Hammerschlag Way & FW De Klerk Boulevard Type: commercial, medical, retail Status: starting 2015 for early 2017 completion Developer: FWJK Developments Investment: R330m

13 12 9 14 5 20 21

Completed Underway Planned 18 | 02. Living in the Central City

USER PERCEPTION survey The 2014 User Perception Survey is the second M ethodology iteration of this survey, The fieldworkers conducting Demographics first conducted by the CCID the survey undertook The following compare not only daytime to nighttime results but also in 2012. Its purpose is to face-to-face interviews the results achieved in 2012 versus 2014 (with the exception of the on the streets of the CBD question on household income, in which 2014 results only are shown). better understand who is using a random-intercept moving daily through the model to ensure statistical Cape Town Central City, authenticity. A structured Gender (%) Monthly household income questionnaire framed the 2012 after deductions (2014 only) 2012 why they are here, and responses, which were done Day Night Day Night Day Night Day Night what they think about the on foot and often en route Day 2014 25 to the respondent’s final 27.6 29.5 21.1 YRS INDIAN urban environment. 50.8 49.275.8 24.2 35.2 & > INDIAN destination. R12 000: 16.6% BLACK BLACK Comparative year-on-year trends R5 000-R11 900: 17.2% 0.8 2.7 The total sample of 1 620 appearing across the survey R4 900 or less: 45% are also revealing a significant participants surveyed 26-49 50.4 44.2 33.8 : 7% 48.8 shift in the nighttime economy was broken down into: 57.8Don’t66.4 know 53.8 71.5 YRS (as it grows) as well as the use Refuse answer: 14.2% 4.6 14.7 of public transportation since Daytime: 1 227 people 2014 COLOURED COLOURED the introduction of the MyCiTi Nighttime: 393 people1 Integrated Rapid Transit (IRT) Day Night Night 2014 WHITE system in 2010 and the ongoing WHITE Fieldwork period of 58.3 41.7 63.9 36.1 R12 000: 14% 16.7 50+ addition of new routes linking the Daytime Survey: 6.9 5.8 7.4 YRS CBD to other areas. R5 000-R11 900: 19.8% Start: 16 November 2014 R4 900 or less: 46.1% There are many applications of Finish: 22 November 2012 2014 Day Night the data. Don’t know: 1.3% BLACK BLACK Fieldwork period of Refuse answer: 18.8% INDIAN INDIAN ++As an organisation, the CCID can Nighttime Survey: Aget dis ribution (%) better orientate its services to 36.1 Start: 19 November 2.4 56.2 match the users of the space. 2012 Racial profile (%)2012 2.8 Finish: 22 November Day Night Day Night 13.4 43.4 33.8 Day Night Day Night 7.2 ++The information gathered 25 empowers businesses and 27.6 29.5 21.1 YRS INDIAN 50.8 49.275.8 24.2 35.2 & > INDIAN retailers to better understand 2012 BLACK BLACK 2012 COLOURED COLOURED who is moving through the CBD ++For town planners and City Day Night Day Night Day 0.8 Night 2.7 Day Night 25 in order to develop the potential officials, the information WHITE WHITE 27.6 21.1 YRS INDIAN 33.8 of new – while also retaining 29.5 26-49 50.4 44.2 48.8 50.8enables49.2 a more functional75.8 24.2 35.2 & > INDIAN 57.8 66.4 53.8 71.5 YRS BLACK BLACK the loyalty of existing – clients urban environment based on 4.6 14.7 and customers. the profile of users of the space. 0.8 2.7 2014 COLOURED 33.8COLOURED The overall survey divided the 26-49 50.4 44.2 48.8 fieldwork Daybetween daytime Nightand 57.8 66.4 53.8 71.5 YRS WHITE nighttime58.3 windows41.7 in order63.9 to 36.1 WHITE4.6 14.7 92.4% capture the differences between 16.7 50+ 2014 6.9 5.8 7.4 YRS of daytime and the two time frames in the CBD. COLOURED2014 COLOURED This Dayenables better understandingNight 85.3% 2012 2014 WHITE Day WHITENight of nighttime respondents 58.3of the impact41.7 of aspects63.9 such36.1 as public transportation and 16.7 50+ BLACK BLACK voted Cape Town as 6.9 5.8 7.4 YRS INDIAN INDIAN perceptions around safety, among Highest level of education 2014 the best CBD other things. achieved (%) in S outh Africa. 2012 2014 Day 36.1 2.4 Night 56.2 2.8 Day Night Day Night BLACK BLACK Overall, the results of the 2014 13.4 43.4 33.8 survey reflect a continuity of Tertiary INDIAN 7.2INDIAN 20.1 29 34 33.3 the 2012 results, and show even more strongly that the 36.1 2.4 56.2 2.8 Cape Town CBD is a space of 13.4 43.4 COLOURED33.8 COLOURED diversity, functionality and 7.2 WHITE WHITE 70.7% growth. Highlights from the Some of 2014 respondents agreed 78.5 69.3 57 61.6 high survey appear on these pages, school that the Cape Town CBD indicating comparative results & matric economy was growing. COLOURED COLOURED across 2012 and 2014 (when WHITE WHITE When asked “Do you ever these exist, as new questions come to the CBD just for fun?” are introduced year on year), as 3.5 Other well as between daytime and 1.5 77.5% nighttime results. 1.4 1.7 5.5 3.6 None/ of respondents said Primary “YES”. school 1 See more on the nighttime results on 2012 2014 page 24. The State of Cape Town Central City Report: 2014 – A year in review | 19

92.5% of respondents rated W hy do you think the The retail experience Cape Town as CBD is rated as one of When asked: Are you happy with the retail “Do you feel the Cape Town cleaner than the best in SA? CBD is inclusive?” 2012 2014 mix in the CBD? other South 7.5 Unaware NEVER USED USED The top responses13.7 received APR 2013 81% 82% during both Daytime and 76.8% said “YES” of daytime and African CBDs NOV 2013 85% (up from 87.3% Nighttime surveys – multiple 63.5 75.6% in 2012). 24.5 options could be chosen. When MAYasked 2014 what new 86% 75.7 of nighttime respondents 36.5 additions they would welcome OCT 2014 85% said “YES”. into the mix, respondents 86.3 Day92.5 NightAware chose the following (multiple Do you useUSED the MyCiTiNEVER during USED options could be chosen). the day? (%) Multi-cultural 29.8 40.2 ++ Movie theatres: 26.4% 2012 2014 people Unaware 7.5 ++CloAPRthing 2013 shops: 19.3% 81% Moving into and NEVER USED USED Safe 13.7 APR 2013 84% around the CBD environment 27.5 36.4 ++Family-oriented shops: 14.4% 2012 2014 NOVNOV 2013 2013 85%87% 63.5 24.5 LargeMAY chain2014 retailers: P rimary mode of transport Clean ++ MAY 2014 11% 86%86% 75.7 20.9 28.1 into the CBD during the 36.5 environment ++RestaurOCTOCT 2014ants: 2014 9.5% 85%90% daytime (2014 only) Family-friendly86.3 92.5 Aware ++Small boutique retailers: 4.5% Metrorail (train): 29.6% place 13.8 22.2 2012 USED 2014NEVER USED Minibus taxi: 25.5% 7.5 Unaware ++Homewear and decor shops: NEVER USED USED Popular13.7 APR3.8% 2013 81% Golden Arrow (bus): 19% How do you rate the business and 8.3 19.8 NOV 2013 2012: Yes 85% Driver of private car: 12.5% MyCiTi system? (%) investment 63.5 24.5 destination MAYDo 2014 youAPRDAYTIME 2013buy from 86% 84%81.7 Passenger in private car: 4.2% 75.7 36.5 informalNIGHTIME traders? 2012 2014 OCT 2014NOV 2013 85% 87%85.7 MyCiTi (bus): 3.1% Popular2012 tourist7.5 2014Unaware23.6 19.5 NEVER USED USED destination13.7 APR2012 2013 81% Motorcycle: 0.2% EXCELLENT 25.1 86.3 92.5 Aware MAY2014: 2014 Yes 86% GOOD 10.8 NOV 2013 85% On foot: 4.7% USED NEVER USED Rich 78.5%OCTDAYTIME 2014 said “YES” 90%82 FAIR/POOR63.5 5.2 24.5 MAY 2014 architectural NIGHTIME 86% Other: 1.3% 75.7 21.5 18 85 DON’T36.5 KNOW 58.9 and cultural heritage OCT2014 2014 85% P rimary mode of transport 2012: Yes 86.3 92.5 Aware APR 2013 84% into the CBD during the 2014 said “YES” 85.4 USED NEVER USED Visible security 14.5 11.5 73.4%DAYTIME nighttime (2014 only) EXCELLENT 36.1 NOV 20132012: Yes 87% 2012 2014 NIGHTIME 90.4 DAYTIME 81.7 Metrorail (train): 12.3% GOOD 21.6 Variety of MAY 2014 86% 9 NIGHTIME Minibus taxi: 26% FAIR/POOR entertainment OCT 2014 2014: Yes 90% 85.7 2012 facilities and 13.4 8.3 DON’T KNOW 33.3 SafetyAPR 2013 & security 84% 90.4 Golden Arrow (bus): 10.2% EXCELLENT 25.1 activities 2014:DAYTIME Yes Driver of private car: 25.2% GOOD NOV 2013 NIGHTIME 87% 10.8 2012 2014 Do youDAYTIME feel safe in the CBD? (%) 8292.2 Passenger in private car: 12.3% FAIR/POOR 5.2 MAY 2014 86% NIGHTIME 85 DON’T KNOW 58.9 MyCiTi (bus): 2.1% OCT2012: 2014 Yes 90% Motorcycle: 0.5% DAYTIME 2012: Yes 81.7 2014W hy people are in the cbd 85.4 On foot: 8.8% NIGHTIME DAYTIME 85.7 2012EXCELLENT 36.1 Other: 2.4% NIGHTIME 90.4 EXCELLENT The top 5 responses25.1 received during the 2012 and 2014 GOOD 121.6 2014: Yes Daytime surveys 2012: Yes MyCiTi Rapid Bus Transit GOODFAIR/POOR 10.8 9 DAYTIME 2014: Yes 82 System (daytime respondenFAIR/POORts) 5.2 DAYTIME 81.7 DON’T KNOW 33.3 NIGHTIME DAYTIME 85 90.4 DON’T KNOW 2012 2014 NIGHTIME 58.9 85.7 Are you aware of the MyCiTi2012 NIGHTIME 92.2 EXCELLENT BUSINESS25.1 2012: Yes during the day? (%) OWNER FOR ENTERTAINMENT Do2014: you feelYes Cape Town’s CBD 2014 FOR ENTERTAINMENT DAYTIME 85.4 GOOD 10.8 BUSINESS DAYTIME 82 2012 2014 EXCELLENT FOR BUSINESS 1.6% 1.5% 36.1 OWNER is safer than other South 7.5 Unaware FAIR/POOR 5.2 NIGHTIME 90.4 NEVER USED USED 13.7 APR 2013OR RETAIL 81% NIGHTIME GOOD 6.6% 13% African CBDs? (%) 85 DON’T KNOW 21.6 58.9 NOV 2013 85% FAIR/POOR 9 6.7% 2014: Yes 63.5 24.5 MAY 2014 2012: Yes DON’T KNOW 14.8% 33.3 86% DAYTIME 90.4 75.7 2014 6.6% DAYTIME 85.4 36.5 57.8% EXCELLENT OCT 2014 36.1 85% 45.1% NIGHTIME 92.2 9.1% NIGHTIME 90.4 86.3 92.5 Aware GOOD 21.6 USED NEVER USED FAIR/POOR TO STUDY 9 FOR BUSINESS (STUDENT/ OR RETAIL 2014: Yes DON’T KNOWSCHOLAR) 33.3TO WORK TO STUDY TO WORK 90.4 (STUDENT/ DAYTIME

SCHOLAR) NIGHTIME 92.2 APR 2013 84% 1 The top five collectively make up 81.5% of the 2012 survey and 81.7% of the 2014 survey. 2012 2014 NOV 2013 87% MAY 2014 86% OCT 2014 90%

2012: Yes DAYTIME 81.7 2012 NIGHTIME 85.7 EXCELLENT 25.1 2014: Yes

GOOD 10.8 DAYTIME 82 FAIR/POOR 5.2 NIGHTIME 85 DON’T KNOW 58.9 2012: Yes 2014 DAYTIME 85.4 EXCELLENT 36.1 NIGHTIME 90.4 GOOD 21.6 FAIR/POOR 9 2014: Yes DON’T KNOW 33.3 DAYTIME 90.4

NIGHTIME 92.2 Many aspects of this report indicate the ever-increasing strength of the CBD’s residential component – from the growth in property prices and the demand for 03 residential apartments to the increase in entertainment and retail options required LIVING IN to service a downtown THE community. From only around 750 residents a decade ago, the CBD’s residential population is central estimated now to be well on 6 000, moving ever closer to the critical mass that will make city it a 24/7 live, work, play and stay environment. There are increasing numbers of families with children as well as a spread across all age groups. People are indicating they are living in the CBD by choice for much longer than what had been seen in the past, when the Cape Town CBD was seen as a relatively transient environment made up largely of students and young professionals for whom the downtown lifestyle was just a phase of their lifespan. Following the residential trends opposite, on pages 22-23, are the results of the annual Online Residential Survey undertaken by the CCID. This survey is the second of its kind and a vital link to understanding how this residential market is growing, what it enjoys about the urban lifestyle and what it needs. The The State State of of Cape Cape Town Town Central Central City City Report:Report: 20142014 –– AA yearyear in review | 21

RESIDENTIAL PROPERTY trends In 2014, the Cape Town Central City continued its trend of strong property sales, with 191 apartments selling in 36 sectional title blocks.

From 2005 to 2014, the Cape Town CBD’s residential property component has shown significant growth. This is largely due to the Apartments in the O n the residential rise increased attractiveness of the Cape Town CBD The residential property market urban environment the Central City in the CBD has seen phenomenal offers as well as increase in investor Buildings in which property growth since 2011. The following confidence. The CBD’s diverse transferred during 2014 reflects the collective rand value of range of rental options also means 15 on Orange • 34 St George’s • all residential sales comparatively there’s something for just about year on year. everyone – from businesspeople The Adderley • Cartwrights Corner who want to be near to work to • Castle Gate • Colosseum • ++2011: R115m families and students seeking a The Decks • De Oude Schuur • ++2012: R145m downtown lifestyle. The Edge • Flat Rock • Fountain ++2013: R249m Suites • Four Seasons • Glaston House • Greenmarket ++2014: R296m Residential sales in rand value Place • Guarantee House • Hip-Hop Listed vs sale prices Plaza • The Icon • Impala House • MONTHLY RESIDENTIAL RENTALS ++2013: R249 million across The average difference between Kimberley House • Lutemborg • IN THE CBD 163 units the listed and sale price was Mandela Rhodes Place The average rentals across ++2014: R296m across 191 units -4.43%, and -3.36% for the (comprising four blocks: Court a selection of Central City 71.72% of properties sold Chambers, Fairbairn, The Towers residential blocks (at the within 90 days. Most sales took and The Winery) • Market House • time of going to print), as per Aver age sale price place in July (22 transfers), Mutual Heights • Namaqua House www.Property24.com, was: followed by January (20 ++2013: R1.428m • North Wharf • The Pepper Club transfers). However, the 191 ++Studio/bachelor: R7 500pm • Perspectives • The Piazza on ++2014: R1.552m total sales were otherwise ++1 bedroom: R12 889pm fairly evenly spread throughout Church Square • Senator Park • ++2 bedroom: R17 438pm the year. The Square • St Martini Gardens • Aver age size and price Trafalgar Place • Wolroy House ++3 bedroom: R27 250pm ++34m2 (at Senator Park, which went for R475 000) to 315m2 (a three-bedroom unit at 15 on Orange on Orange Street, which sold for R9m – 4.7% above the listed price) ++The average size of CBD units: 2 80.73m ++ Average price per m2: R19 227.85

D ays on the market ++ Overall, apartments stayed on the market for an average of 109.27 days. ++However, of those, 71.72% (137) sold within 90 days, with an average of just 26.42 days spent on the market, demonstrating that well-priced residential units in the CBD continue to be snapped up. Table Bay MOUILLE POINT

BEACH 22 | 03. Living in the Central City Granger Bay How long people have lived in the CBD How much longer do you expect Top 3 reasons for living in CBD Green Point Lighthouse Bay (in years) to live in the CBD? 2% live in CBD part-time THE ANNUAL Metropolitan (In order of popularity) Golf Course 6% own CBD investment property Metropolitan Stephans Way 0-6 months: 4% Golf Course Rugby 6 months - 1 year: 4% Bay Fort Wynyard GREEN POINT 9% 11% 16% 12% 19% 15% CAPE TOWN CENTRALVICTORIA WHARF CITY 1-2 years: 9% URBAN PARK Cricket CAPE TOWN Close to Oval STADIUM BEACH 2-4 years: 11% my Sea Point Rugby Diverse Police Station / 4+ years: 50% work I like the entertain- Athletics Blvd Table Bay IMPROVEMENTTrack Bay SomDISTRICTerset (CCID) er Tennis ng “downtown” ment Green ra Not sure: 22% Precinct Health and Point MOUILLE POINT G 1 2 3 3-5 5-10 10+ options Fitness Park lifestyle

BEACH BEACH RD Sea Point HELEN SUZMAN BLVD Civic Centre Green Point Granger Bay Track and Clinic Green Point RENT VS OWN Age spread of residents MOVING AROUND THE CBD SEA POINT PROMENADE MAINLighthouse Bay Residential Survey InfographicPORTSWOOD 201CLOCK4 TOWER Top 3 categories of Metropolitan Golf Course In order to ﬁnd out moreMetropolitan aboutStephans Way who livesMAIN in and around Cape Town’s CBD, the CCID once again ran its annual 18-24: professionals in the CBD Golf Course V&A WATERFRONT 7% Rugby Percentage of Bay Fort Wynyard 25-34: Online ResidentialGREEN POINTSurvey in August 2014. A total of 293 people responded from the Central City, providing us 40% VICTORIA WHARF 10% respondents URBAN PARK Cricket CAPE TOWN Oval STADIUM BEACH own but 35-44: 22% Architecture and Engineering with a wealth of informationSea Point HIGH LEVEL Rugby on who lives in the CBD, what they like about it, the things they’d like to see living within Police Station MAIN Athletics Blvd let out to Track Bay Somerset ger 45-54: 15% Tennis Green n ra 3 kms of their Media, Marketing & Comms. Precinct Health and Point G 47% improved, and the diffFitness erentPark ways the CCID can make the CBD an even better place to live. Own tenants 55-64: 12% BEACH RD Sea Point work or school, SEA POINT HELEN SUZMAN BLVD Green Point Civic Centre and Clinic Track HEL & live in their Creative Industries SEA POINT PROMENADE MAINGREEN POINT EN S PORTSWOOD UZMCLOCK TOWER 43% property 65-74: 3% % making non- AN MAIN B V&A WATERFRONT L Rent V 75+ : 5% motorised TO CAMPS BAY D 66 How do people work? HARBOUR commuting a HIGH LEVEL HELEN SUZMAN BLVD MAIN THE HAPPINESS FACTOR serious possibility 67% - full-time employees SEA POINT STRAND CCID BOUNDARIES HIGH LEVEL GREEN POINT SOMERSET INDICATED WITH: 29% - self-employed/freelancing WALTER SISULU Residents like big People move around the CBD SEA POINT PAVILION HARBOUR 3% - work part-time North Wharf events in the CBD in a lot of diﬀerent ways. STRAND Square

HIGH LEVEL SOMERSET 91.3% BEACH RD 68% said they like Here are some of the ways that 2% - not presently employed SIGNAL HILL Waterkant COEN STEYTLER of residents report Map showing THE FORE- Duncan people get from A to B: Castle STRAND North Wharf N2 attending public art & Square SHORE being very happy coverage area of Prestwich Pier Place SIGNAL HILL Waterkant performance events BO-KAAP Hout FORESHORETHE living in the CBD. Duncan N1 KLOOF CCID Castle STRAND N2 Thibault Founder’s Riebeek Square BO-KAAP Prestwich Pier Place D.F. Malan EATING AND DRINKING IN THE CBD Chiappini HEERENGRACHT HERTZOG BOULEVARD Garden Up from 87.9% on the city’s streets. 80% Hout said that they walk Residential Rose N1 Thibault Founder’s Riebeek Square Chiappini BREE HEERENGRACHT D.F. Malan Garden Artscape Church HERTZOG BOULEVARD in 2013 Survey Rose Theatre BREE Artscape Church LOOP Theatre of residents visit a CBD coﬀee Wale LOOP Wale LOWER 63% own a car & drive Heritage Bus services Heritage Shortmarket Dorp Square Shortmarket Square Jan Smuts Dorp Jan Smuts shop at least once a week LOWER Bus services CBD 84% D CBD D R LONG ADDERLEY R L BUITENGRAGT Cape Town Old Marine L LONG Railway CivicADDERLEY L I BUITENGRAGT Old Marine H Station Centre Civic IL L Cape Town NA Greenmarket St. Georges Centre N1 37% take the MyCiTi Bus 50% — 1-2 H G LOWER Square Civic N1 L I WALE Mini Bus Railway D A S Greenmarket Taxi Rank V TO PAARL TO PAARL St. Georges BLMini Bus Taxi Rank N BO-KAAP Square Station G BREE LA Civic I WALE E CHRISTIAAN BARNARD D 22% — 3-5 S CHRISTIAAN BARNARD Pepper D V N L Parliament A B in New Church th Grand Parade M g A e BREE L in C 17% said they use a bike LONG LOOP N E d 8% — 6-10 LOWER BO-KAAPLOOP Church O S i Square D a Pepper L t City Hall N e Buitensingel E y Top energy

Parliament N A Company’s R New Church Government Garden GrandSTRAND Parade M 2% Milner — 11-15 TAMBOERSKLOOF CHURCH LONG DARLING N UPPER PLEIN Castle of saving measures Queen Victoria O 3% CBD Good Hope skateboard CT Central Church S Police Station L 2% Square City Hall — 15+ Buitensingel Barrack Caledon NEW MARKET ALBERT E

UPPER N taken by Park Company’sTHE FRINGE SIR LOWRY ROAD ORANGE Museum Government ST. JOHN’SROELANDGarden Keizersgracht STRAND Milner CBD Harrington SIR LOWRY ROAD Square CHURCH residents — KLOOF PLEIN (times per week) Castle of PoliceCT StationCentral DARLING Queen Victoria TENNANT by % Good Hope VICTORIA Barrack Other options? Some push a Canterbury Constitution T Caledon N Switching to energy NEW MARKET CHURCH ALBERT Upper Union LOWER A K 63 N E SIR LOWRY ROAD pram, others take motorcycles. Harrington LOWERPark KLOOF ANNANDALE T EASTCPUT Camp Museum GARDENS I Keizergracht of residents frequent a CBD U ST. JOHN’S ORANGE B Harrington saving light bulbs ROELAND Keizersgracht WOODSTOCK KLOOFUnion CITY Square SIR LOWRY ROAD KLOOF NEK HATFIELD Roodehek restaurant at least 1x per week Upper Canterbury ROELAND DE VILLIERS 68% KLOOF CPUT & DISTRICT SIX 61 Power saving r TENNANT Hope ee VICTORIA w Constitution Wembley nd What kinds of retail advances

Hof a r TO AIRPO MILL B Canterbury RT

Constitution of respondents Recycling 44% — 1-2 53 KLOOF JUTLAND do residents want to see? LOWERM3 DE WAAL CHURCH Upper Union Upper Mill use the libraries 21% — 3-5 LOWER ANNANDALE GARDENS Camp Harrington CPUT Keizergracht 24% KLOOF in the Central City 42 Buy locally grown De Waal Park WOODSTOCK 2% — 6-10 KLOOFUnion GARDENS KLOOF NEK HATFIELD T food Roodehek N UPPER BUITENKANT 1 More restaurants UPPER KLOOF A K 1%— 10+ N Upper Canterbury 62% do not. E DE VILLIERS EGNA T ROELAND I U Putting the geyser B 39 Molteno CPUT & RO REPPU RO r Hope ee M3 Belvedere w Constitution 14% didn’t know we have Wembley d DISTRICT The top places that residents Hof n on a timer a r TO AIRPORT

SIGNALHILL MILL B SIX libraries in the Central City. Retail with longer hrs go out in the CBD TO CLIFTON 2 KLOOF JUTLAND M3 DE WAAL TO MUIZENBERG (beyond 5 PM) HIGHLANDS Time to get reading! Upper Mill Kloof Street and surrounds — 68% TO CAMPS BAY

EGNRO REPPU EGNRO

Tafelberg Rd

A Long Street and surrounds — 48% De Waal Park GARDENS of respondents have children, of which the 3 Deli-type food stores Bree Street and surrounds — 43% UPPER KLOOF UPPER BUITENKANT following are the number of kids per family: Demographics 27%

BEACH Granger Bay How long people have lived in the CBD How much T lonhe Stateger of d oCape you Town ex peCentralct City TopReport: 3 reasons2014 – A year for in living review in | CBD 23 Green Point Lighthouse Bay (in years) to live in the CBD? 2% live in CBD part-time THE ANNUAL Metropolitan (In order of popularity) Golf Course 6% own CBD investment property Metropolitan Stephans Way 0-6 months: 4% Golf Course Rugby 6 months - 1 year: 4% Bay Fort Wynyard GREEN POINT 9% 11% 16% 12% 19% 15% CAPE TOWN CENTRALVICTORIA WHARF CITY 1-2 years: 9% URBAN PARK Cricket CAPE TOWN Close to Oval STADIUM BEACH 2-4 years: 11% my Sea Point Rugby Diverse Police Station / 4+ years: 50% work I like the entertain- Athletics Blvd Table Bay IMPROVEMENTTrack Bay SomDISTRICTerset (CCID) er Tennis ng “downtown” ment Green ra Not sure: 22% Precinct Health and Point MOUILLE POINT G 1 2 3 3-5 5-10 10+ options Fitness Park lifestyle

Hof a r TO AIRPO MILL B Canterbury RT

EGNRO REPPU EGNRO

Tafelberg Rd

Molteno VREDEHOEK M3of those living TOP FIVE PUBLIC SPACES FOR CBD RESIDENTS Belvedere in the CBD (by percentage of use) 30% are Cape Town locals TABLE MOUNTAIN 12% from elsewhere in TO MUIZENBERG HIGHLANDS NATIONAL PARK Western Cape Tafelberg Rd 44% from elsewhere in South Africa 9% 14% 3% 1% 14% FEELINGS OF SAFETY 60% from an international 1 kid 2 kids 3 kids 4 kids destination IN THE CBD The The Fan Walk Church Company’s St George’s Greenmarket 24% 0 - 3 years old 8% 14 - 18 years old Garden: Mall: Square: (Waterkant St.) Square: not safe at all 40% 20% 4 -13 years old 48% 18+ years old not very safe 20% 81% 59% 49% 35% 23% somewhat safe TOP 3 REQUESTS FROM CENTRAL CITY PARENTS pretty safe TABLE MOUNTAIN More child-friendly public spaces 0 27% of residents who took this survey have pets very safe DuNATIONALring During PARKAt twilight, During During week- Alone With friends Public toilets with changing facilities week day week night dusk/sunset weekend day end night Daycare 24 | 03. Living in the Central City 85% of respondents said they feel safe overall being in Bedtime the CBD at night, while % The business of visitor 92 accommodation in the CBD felt the Central City was The Cape Town Central City safer than other has 57 accommodation South African cities establishments ranging across at night. the spectrum of hotels, B&B, self-catering and backpackers. These offer guests a total of 4 600 beds. Cape Town Tourism tracks the trends in occupancy rates in these establishments across the metro region through their monthly Accommodation Performance Review and Forecast Report2. Each month, a percentage of accommodation providers are surveyed to establish a sample of key accommodation sector indicators. The figures below, for establishments in Cape Town’s Central City, reflect the health THE CBD’S BURGEONING of the accommodation sector in our CBD over the last 12-month assessed period, and compares NIGHTTIME ECONOMY the CBD figures against the metro region averages.

Occupancy rates The most interesting point to The Central City’s nighttime note here is that the increase in Cape Town Metro economy has grown U ser Perception Survey categories “daily” and “several CBD region times a week” has gone up exponentially since Cape on nighttime economy Annual average Town’s (and South Africa’s) significantly between the 2012 As explained on pages 18-19, the and 2014 surveys, confirming the 69.8% 66.18% success at hosting the 2010 CCID conducts User Perception growing body of regular users of FIFA World Cup™, and the Surveys every two years, and the CBD’s nighttime entertainment Highest occupancy months CBD’s own success at both includes responses from nighttime and retail economy. November users of the CBD. During the 2014 84.7% 78.2% hosting the international On duty survey, respondents included those February: visitors that streamed in engaged in leisure activities at night 88.6% 87.1% as well as those on their way to of respondents and encouraging locals 43.3% March work. Where these are noteworthy, were present at night in the CBD 87.7% 81% to return to the area – results are compared between the to work, in establishments such many of whom had not 2012 and 2014 survey. as call centres, restaurants, bars, Lowest occupancy months experienced leisure time in buildings (cleaning crews) and June 1 Aver age monthly income of other facilities. the area for many years . people on the streets of the 54.2% 47.1% CBD at night 4.1% of respondents in the August Since then, the CBD has experienced CBD at night 51.1% 51.7% ++R12 000 plus: 14% were business owners. not only a significant increase in the number of bars and clubs for ++R5 000 – R11 900: 19.8% Inclusivity Room rates (per person) late-night patrons (an economy Annual average ++R4 800 or less: 46.1% for which the area has traditionally 75.6% of respondents found R1 353.08 R1 248.33 catered), but is seeing an increasing ++Don’t know/ the CBD’s nightlife to be inclusive. 3 number of new restaurants and refuse to answer: 20.1% RevPAR other establishments catering for Rating of cleanliness R969.50 R 847.50 different markets, including families. at night Likewise, the number of afterhours Frequency whereby 1 The Cape Town Stadium is in the suburb of events in public spaces has increased entertainment and retail A clean CBD is always felt to be a safer CBD, and perceptions around Green Point, directly adjacent to the CBD, and part significantly over the course of the outlets were visited by of the 2010 experience in the Central City was to past years (see page 13). nighttime users in 2014 this have improved since 2012. engage with the 2.3km pedestrian- and bicycle- friendly Fan Walk that enabled people to move Good very good/ The introduction two years ago of 2012 2014 safely between the Cape Town station forecourt the First Thursdays concept (see excellent in the CBD (the city’s main transport hub) to the opposite), in which art galleries, stadium. The Fan Walk remains a legacy project Daily: 28% 44% 2012: 44.7% 40.6% in the Central City. It is activated every time the bespoke shops and eateries stay stadium hosts a medium to large-scale event, and 2014: 41.6% 48.8% open until at 21h00 and beyond, Several times 28% 8% is used daily by pedestrians and cyclists. has also introduced a new clientele a week: who have come to realise that Safety & security at night 2 The Accommodation Performance Review and Forecast Report is conducted by Horwath HTL vibrant nighttime streets are Once a week/ 8% 11.5% This question rated the presence South Africa, an independent member firm of safe streets. As the residential 4 times a month: Crowe Horwath International’s Hotel, Tourism component continues to grow, of visible security and policing at and Leisure Group – consultants for potential and the demand increases for night, and the trend is positive. investors, lenders and operators. Once a month: 32% 10.9% www.horwathhtl.co.za afterhours facilities to service this Good very good/ market, there is no doubt that the 1-2 times a 20% 3.1% Excellent 3 RevPAR, or revenue per available room, is a Central City downtown over the month: performance metric in the hotel industry, which 2012: 37.2% 38.3% is calculated by dividing a hotel’s total guestroom next few years will become a true revenue by the room count and the number of 24/7 economy. 1-2 times a year: 4% 2.5% 2014: 36.9% 47.9% days in the period being measured. The State of Cape Town Central City Report: 2014 – A year in review | 25

Results of the FIRST THURSDAYS survey

First Thursdays is a coincide with the First Thursdays How people got to First I s this your first time at activation. Of those surveyed citizen-led, ground-up Thursdays First Thursdays? regarding the event: Been four initiative to support minibus Been times bicycle art galleries and at the ++16% of retailers said they were taxi three before 2% times Yes, noticing a positive change in 6% Been five 5% before it’s my same time use them as a business. train walked times first 5% from home or more 13% catalyst for activating the time ++80% said that the event had not MyCiTi or office before streets of the Central City yet had an effect on their business bus 28% 12% 45% after hours. (in terms of them not yet having 7% exploited the opportunity). This activation, on the first Thursday ++4% said that it impacted of every month (with the exception negatively on their business. of January), turned two years old in November 2014. A still relatively young event, it has been hugely Been twice Been encouraging to see how the public before and galleries have embraced it, and F rom the First private car once or carpooled 15% how a wave of participation from Thursdays Survey 2014 before 53% 10% other businesses that lie in the These surveys were set up to better event’s footprint has been growing understand how First Thursdays people who go to On a scale from 0 to 5 (from not – such as bespoke decor shops, is impacting on the Central City First Thursdays live clothing boutiques, and eateries great at all at 0 to really great experience after hours. During the predominantly in these at 5), the average at which people including bars, restaurants and 2014 survey, 104 people took part, areas food trucks. A strong fringe festival rated their overall experience of divulging information regarding the First Thursdays event stood element has also been brought CBD and their personal profiles as well as at 4.31, reflecting strong positive on board that includes music and their engagement with what First surrounding performance art in public spaces. City Bowl: Southern public opinion towards this event Thursdays had on offer. The data 35% suburbs in the CBD. The event is also increasingly helps to create a better understand and south of who’s attending and how the peninsula attracting a diverse range of people of people surveyed activation is helping to drive the suburbs: 87% not usually seen after hours in said that they planned on eating economy of the CBD. 22.33% the CBD, particularly families. at restaurants in the area on the Northern This bodes well as the Central evening – this included the many food City looks to extend its nighttime suburbs: Age of people attending 10% trucks that are set up on the streets economy across a range of specifically during First Thursdays. opportunities catering to different - 15-18: 1% markets and also dovetails with - 19-24%: 35% 54% of people had previously the diverse and growing residential - 25-34%: 35% population. visited galleries in the CBD before - 35-44%: 16% coming to the First Thursdays event. To monitor and trend the growing - 45 and above: 15% For more information on First Thursdays, visit success of First Thursdays, a www.first-thursdays.co.za dipstick survey was first conducted with members of the public in 2013, and again in 2014. This was a joint initiative conducted by the organisers of the event and the CCID. From a retail perspective, the First Thursdays concept was also included in the CCID’s May 2014 Retail Opinion Survey1. The following are some of the highlights from these 2014 surveys relating to this monthly event.

F rom the May 2014 Retail Opinion Survey The results of this survey indicated that there were numerous opportunities still for retailers in general in the CBD to benefit from extending their trading hours2 to

1 For more on the Retail Opinion Survey see page 26 of this report.

2 A desire to extend retail trading hours was also expressed by CBD dwellers in the 2014 Online Residential Survey (see pages 22-23). 26 | 03. Living in the Central City

RETI A L IN THE CBD

F ormal Retail Opinion survey Run twice a year by the CCID (in May and October during 2014), the Retail Opinion Survey captures the sentiment of formal retailers in Cape Town’s CBD to determine how confident they are in business growth, what their future plans for expansion are and other pieces of strategic information that help to track the confidence and strength of the sector.

Current business status of retailers

Business as usual Decline in business Growth in business

2012 2014 7.5 Unaware NEVER USED USED 13.7 APR 2013 81% NOV 2013 85%

63.5 24.5 24% 63% MAY 2014 86% 75.7 24% 63% 11% 35% 40% 25% 37% 42% 21% 43% 33% 24% 52% 26% 22% 47% 24% 29% 43% 32% 25% 36.5 Jul 2011 Mar 2012 Oct 2012 Apr 2013OCT 2014 Nov 2013 May 2014 Oct85% 2014

86.3 92.5 Aware USED NEVER USED Level of satisfaction in having chosen Retailers’ confidence levels that they the CBD as a base for business: will still be operating in a year’s time: 2012 2014 7.5 Unaware NEVER USED USED 13.7 APR 2013 81% APR 2013 84% NOV 20132012 2014 85% NOV 2013 87% 63.5 24.5 MAY 2014 86% MAY 2014 86% 75.7 36.5 Retail is a critical component The retail sector in the OCT 2014 85% OCT 2014 90% Central City is one that has of a successful downtown, 86.3 92.5 Aware been regularly surveyed for a and USEDwith overNEVER 1 200 USED formal number of years by the CCID Retail and MyCiTi retailers in the Cape Town and – while the Cape Town Central City, employing CBD is also experiencing the Our May 2014 survey asked ++2012:No, it hasn’t Yes been increasing retailers whether they think the customer numbers: 41% same tightening economic 81.7 a conservative estimate APR 2013 84% DAYTIME climate as the rest of the MyCiTi bus rapid transit system is helping to drive up customer ++NIGHTIMEBusinesses are not sure as to how (see opposite) of 10 867 2012 world – levels of confidence NOV 2013 87% 85.7 2012 2014 numbers in their CBD shops. it’s affecting their trade: 34% employees, this sector is aEXCELLENT in doing business25.1 in the area Here’sMAY 2014 what they’ve been saying.86% ++2014:Businesses Yes are not located significant contributor to GOODthe remain 10.8buoyant overall. +OCT+Yes, 2014 it has been increasing 90% DAYTIMEsufficiently close to a route or 82

CBD job market. FAIR/POOR 5.2 stationSOMERSET to benefit: customer numbers: 21% NIGHTIME 4% 85 DON’T KNOW 58.9 2012: Yes Occupancy rates (including shopping centres) 2014 Precinct 2 DAYTIME Precinct 1 85.4 December 2014: 94% December 2014: 90% EXCELLENT 36.1 2012: Yes Setting up shop September 2014: 93%NIGHTIME September 2014: 90% 90.4 DAYTIME 81.7 April 2014: GOOD 21.6 BO-KAAP April 2014: 92% 87% TAMBOERSKLOOF FAIR/POOR 9 BUITENSINGEL NIGHTIME 85.7 2012 TO BUITENGRAGT 2014: Yes Total lettablTABLE MOUNTAINe spacKLOOFe NEK EXCELLENT & CAMPS25.1 BAY DON’T KNOW 33.3 DAYTIME 90.4 The total estimated square BREE 2014: Yes WALTER SISULU AVE

LONGMARKET

STRAND NIGHTIME GOOD 10.8 HOUT 92.2 meterage, vacant and occupied, LOOP DAYTIME WALE 82 5.2 LOOP FAIR/POORof retail space in the Central City KLOOF

NIGHTIME RIEBEEK 2 LONG LONG 85 DON’T KNOWis 265 145m . This isKLOOF divided58.9 LOWER LONG 1 into street-facing retail space ORANGE 2012: Yes CTICC of 186 829m2 and 78 316m2 in 2014 DAYTIME 85.4 shopping centres.GARDENS THE COMPANY’S GARDEN EXCELLENT 36.1 HEERENGRACHT NIGHTIME ADDERLEY 90.4 Parliament GOOD 21.6 NELSON MANDELA BLVD

TABLE BAY BOULEVARD HARBOUR

FAIR/POOR 9 CAPE TOWN HERTZOG BOULEVARD ANNANDALE 2014: Yes RAILWAY De Waal HATFIELD PLEIN STATION

DON’T KNOW 33.3 Park 90.4 PARADE A verage overall DAYTIME GRAND ROELAND CBD occupancy rate was DARLING Precinct 3 NIGHTIME 92.2

MILL December 2014: 92% 93% September 2014: 91% CIVIC (marginally down from April 2014: 92% BUITENKANT Precinct 4CENTRE 94% in 2013, indicating December 2014: 97% BUITENKANT CASTLE OF GOOD HOPESeptember 2014: 97% a very consistent 1 Street-facing retail space in this CANTERBURY

STRANDApril 2014: occupancy rate). instance refers to all space outside 96% of CBD shopping centres such as the CHRISTIAAN BARNARD

Golden Acre and Picbel Parkade. KEIZERGRACHT JUTLAND

N MANDELA B TO PAARL/

NELSO LVD GAUTENG ROELAND M3 SIR LOWRY ROAD

N1 DISTRICT SIX TO AIRPORT

DE WAAL

TO MUIZENBERG

NEW MARKET

M3 The State of Cape Town Central City Report: 2014 – A year in review | 27

A study in formal Retail Employment Density AND EMPLOYMENT NUMBERS Along with determining retailer much larger than average floor satisfaction, the CCID also used space, which at times can be as its bi-annual formal Retail Opinion high as 90m2 per employee. These Survey in 2014 to extrapolate include retail stores such as those the number of employees that involved in automobile sales work in retail (and its subsectors) and other high-space specialty in the CBD. This was done to enterprises. The retail subsector estimate the economic value of with the lowest average is food employment in this sector in the services. Central City. Additional questions were incorporated into the opinion E mployee numbers survey, and the results were then compared against (and reinforced The information obtained was the results of) an employment then matched against spatial density study conducted by the data on the estimated amount CCID in 2012. of retail floor space in the CBD in order to generate estimated The results of the study can data on the number of employees be seen on these pages, with in each sector of retail. The the first two tables relating to estimates follow. employees who work at retail venues at ground-floor level that open directly onto the city streets. In our ground-floor level retail, we Employment Estimated Sum of Sales thus have an approximate number of The numbers of employees at density from number of Retail Category Area by shopping centres were then also density potential Category 8 070 employees working estimated and then added at the analysis employees in the CBD. end of the study. Barrows/kiosks 1110 5 222 Estimating shopping centre Books/cards/stationery 1527 56.9 26.8 Employment density Average employment numbers 2 Retail subsector m per Clothing & apparel 16550 39 424.4 employee Although no direct data exists Convenience services 9407 29.6 317.8 on CBD shopping centres, Barrows/kiosks 5 researchers working on this study Department stores 7003 15 466.9 Books/cards/stationery 56.9 were still able to estimate the Electronic/ square meterage (total spatial Clothing & apparel 39 7125 26.4 269.9 photography/music area) of the four centres in the Convenience services 29.6 Central City. Assuming a 100% Entertainment 5278 28 188.5 occupancy, which is generally the Department stores 15 Eyewear 688 24 28.7 case for shopping centres in the Electronic/ CBD, the study then applied the 26.4 photography/music Food 7011 17.9 391.7 average retail density of 28m2 per employee to each centre. Here Food services 31404 13.2 2379.1 Eyewear 24 are the extrapolated, conservative Food 17.9 Health & beauty 5835 27.1 215.3 employment densities.

Food Services 13.2 Home furnishings/art/ antiques/decor/curios 13854 29.8 464.9 Average Health & beauty 27.1 and african art work number of Shopping Centre employees Number of Home furnishing/arts/ Jewellery 2420 22.2 109 Centre Area from employees 29.8 antiques/decor density Luggage & leather goods 593 28 21.2 analysis Jewellery 22.2 Golden Motor & related 19819 42.2 469.6 43840 28 1565.7 Motor & related 42.4 Acre Non-turnover- 14639 28 522.8 Shoes 43 generating stores (eg banks) Grand Parade 9478 28 338.5 Speciality 79.3 Shoes 2616 43 60.8 Centre

Sport utilities 28.4 Speciality 6498 79.3 81.9 Grand 12388 28 442.4 Central Sporting/outdoor Sport utilities 7035 28.4 247.7 18.2 goods/wear Picbel Sporting/outdoor 12610 28 450.4 2410 18.2 132.4 Parkade Superette 21.8 goods/wear Total 2797 Travel/hotel & services 14.5 Superette 421 21.8 19.3

Total 28m2 Hotel & travel services 5014 14.5 345.8 Conclusion Vacant shops 16187 28 578.1 Adding up the estimated figures Vacant shops under Of interest is that the average 1412 28 50.4 for both ground-floor retail and of 28m2 per retail employee is construction shopping centres, it is estimated significantly higher than the Wholesalers 973 28 34.8 that conservatively there are CBD’s overall employment density of 20m2. This is as a result of Total 8069.9 10 867 employees working certain retail outlets having a in the CBD’s retail sector. 28 | 04. Connecting the Central City to the rest of the world

was established one year before the CCID and for the first eight years of their co-existence, the mandates of the two organisations operated geographically along identical paths, with both 04 concentrating their work on the Central City. The Partnership acted as the CCID’s managing agent until mid-2014. C ONNECTING THE While still working for the common good of the Cape Town Central CENTRAL CITY City, since 2008 the Partnership has broadened its horizons, turning its focus towards a 10-year TO THE REST OF strategic plan in collaboration with the City of Cape Town under the banner “Cities are for THE WORLD people”. This focus now includes a broader geographical area incorporating the suburbs that lie on the border of – and in close proximity to – the Central City. The plan looks towards creating greater interconnectivity across this area and to the broader metro region. This strategy is also seeing the Partnership move away from place marketing and towards place making, recognising that cities are first and foremost networks of human connections and that urban planning, policy and intervention needs to follow Economic partnerships in the suit. To this end, it works across a number of projects that deal with sustainability, history and memory, Cape Town CBD mobility, housing, community, Strong public and private established by local property oversee a workforce of over 600 in creativity, public spaces, economic partnerships make for owners with a vision for the the CBD. These include: development and African cities. Cape Town CBD to rise from the For more information on the a vibrant downtown “crime and grime” scenario it had ++230 CCID-branded Public Safety Officers on the street to Cape Town Partnership visit economy. In the Cape Town fallen into to once again become a www.capetownpartnership.co.za. viable urban environment. prevent crime through visible Central City, there are a deployment. number of organisations During its first decade in operation, ++60 skilled and 300 semi-skilled working closely together to the CCID’s mandate was to ensure the CBD was “Safe, clean and cleaners and a road maintenance The Economic ensure this collaboration. caring”. To this end, it established team who keep the “spaces Development three departments to provide in between the buildings” in Partnership top-up services to complement optimal condition. The Cape Town Central those of the CCID’s primary With the mandate to create ++3 fulltime social development “effective partnerships for partners at the City of Cape Town who engage with City Improvement fieldworkers inclusive, resilient growth”, and the South African Police 6 primary NGOs partners on a District the Western Cape Economic Service. These departments, still in daily basis to assist the indigent Development Partnership (EDP) operation today, comprise Safety & towards social services. The publisher of this report, was established in 2012 as an the Cape Town Central City Security, Urban Management and Social Development. ++A communications and research independent, non-profit, non- Improvement District (CCID), partisan organisation that seeks has been in operation since network that, along with By 2008, with the basics in place, enabling publications such as to join forces across all economic 2000, when it became the the CCID turned its attention drivers – locally, regionally and implementation body through this one, promotes investment in towards the active promotion the CBD and the work of the CCID nationally – to stimulate economic which to turn back the Cape Town and marketing of the Cape Town growth and job creation. This is CBD from the edge of urban decay. to a media value, in 2014, of well CBD to attract new investment over R18 million. particularly vital to the Western The first CID (often referred to as and to ensure the retention of Cape, which, between 2001 and investment made into the area by For more information on the Cape Town 2010, saw economic growth of a BID or business improvement CCID visit www.capetownccid.org district abroad) in South Africa the stakeholders who had helped 45% but only a 16% growth in its and the largest, covering a specific to uplift it. The vision evolved to regional workforce. geographical area of 1.6km2 (see “Safe, clean, caring and open for business” and in 2013 a fulltime Its membership and projects cross page 3), the CCID is today one the full spectrum of economic of 32 special ratings areas in Communications & Marketing The Cape Town department was added to the mix. Partnership development in the region, many the City of Cape Town. A public- of which have a huge role to private partnership and non-profit Today the CCID boasts a fulltime The Cape Town Partnership, also play in the Central City economy organisation, it was originally staff compliment of 20, who a public-private collaboration, as well. These include public T Thehe S Statetate of of Cape Cape T Townown Central Central City City R Report:eport: 20142014 –– AA yearyear inin reviewreview || 29 29

entities; business; industry and 1982 and creates an average of professional organisations; 3 000 jobs per annum through Assessing the knowledge, research and policy the facilitation of foreign and institutions; civil society; those local investments. By establishing impact of World involved in economic development strategic relationships across Design Capital 2014 ++Invigoration of its East City promotion and intermediary the globe, it also assists local During 2014, Cape Town area (an ongoing process, support organisations; and trade companies in exporting to foreign held the title of World Design which has seen significant unions. Within this spectrum, the markets. Capital. This designation is consolidation around the EDP’s role is to be the intermediary awarded biennially by the World Design Capital rollout). organisation that facilitates For more information on Wesgro visit International Council of real, collaborative, tangible and http://wesgro.co.za ++Growth and expansion of Societies of Industrial Design measurable activities and projects the Cape Craft & Design (ICSID) to cities that are between member sectors and Institute situated in the East dedicated to using design for spatial areas. City, including the launch of Cape Town Chamber social, cultural and economic the Design Innovation Seed For more information on the EDP visit of Commerce and development. Cape Town Fund (DISF), which will be www.wcedp.co.za. Industry became the fourth city to hold supported with seed funding the title and the first in Africa. from the national Technology Established in 1804, the Cape With the theme “Live Design. Innovation Agency (TIA) and Town Chamber of Commerce and the provincial Department W esgro Industry is the oldest member- Transform Life”, Cape Town throughout 2014 highlighted of Economic Development The official destination marketing, based business organisation in Tourism (DEDAT). The DISF Africa. Mandated to serve, enable the role of design in solving the investment and trade promotion social, cultural, environmental will provide gap funding to agency for the Western Cape, and lead business, it facilitates innovators and entrepreneurs a multitude of services and and economic challenges of a Wesgro’s mandate – as prescribed post-apartheid city. primarily to de-risk by the City of Cape Town and networking opportunities among opportunities and bring Western Cape Government – is its members. While it ensures that Though the economic them closer to securing “to attract and retain foreign many of its services are aligned impact assessment will follow-on funding from the direct investment, grow exports to international chambers of only be unveiled next year TIA and/or other public and and market Cape Town and the commerce as well as global trends (and it’s results will thus be private funders. Western Cape as a competitive in order to nurture international incorporated into this report business and leisure destination trade development and facilitation, when the publishers review ++The hosting of WDC2014 globally”. It looks to align the it is ever mindful of keeping its 2015), the World Design events such as the Better region to national and provincial offering relevant to the local Capital 2014 project manager, Living Challenge, and pitching priorities for economic growth, market and giving local businesses Jenni Kruger, says Cape Town sessions, through which a trade and investment promotion a voice. It has numerous chapters achieved global media exposure number of temporary jobs initiatives and facilitate the link spread throughout the Western as a design destination to the were created. between business and government Cape, but houses its head office in estimated value of R1.8 billion. For more information on WDC2014 decision makers. the Cape Town CBD. Meanwhile, the CBD saw: visit www.wdccapetown2014.com. For more information on the Cape Wesgro has contributed to the Chamber of Commerce and Industry Western Cape economy since visit http://capetownchamber.com 30 | 04. Connecting the Central City to the rest of the world

The economy of CREATIVITY, THE ARTS & KNOWLEDGE

The Central City’s creative Western Cape Education industries and educational Department in Lower Parliament Ar tSCApe’s economic Ar tSCApe’s funding Street: for information related to contribution to GDP institutes play a vital role primary and secondary education. Increased commitment to capital in the economy of Cape 2007-08: R162 640 638 funding from the DAC has put Artscape in a position to significantly Town’s downtown, as do 2008-09: R184 952 632 expand its facilities, activities and the performing arts. Creativity in the CBD 2009-10: R245 936 645 contribution to the Western Cape economy and communities. During There are 565 Creative Industry 2010-11: R280 468 261 the year under review, Artscape businesses/shops/organisations received R45.65m from DAC and 2011-12: R366 934 566 E ducational institutes in the CBD, including architects, R14.335m from WCG for capital clothing designers, retailers who 2012-13: R402 517 180 works funding – a substantial At 92%, Cape Town’s literacy sell creative goods, and other investment in the CBD facility, rate is the highest of any city in related organisations who assist 2013-14: R359 970 303 demonstrating economic confidence the country, and with so many the industry. at both national and provincial level registered educational institutions To determine the diversity and Total audience numbers between in the performing arts. and resources for students in the quantity of creativity happening April 2013 and March 2014: During the 2013/14 period, CBD, there is an ever-increasing within the CBD and its immediate Artscape’s economic performance influx of learners. surrounds, a survey is undertaken 333 298 saw revenue of R23 447 151 each year by the Creative Cape generated, over and above Productions and performances Education by the numbers Town project attached to the the agency’s self-set target Cape Town Partnership. The of R19 963 000 – this target 45 educational institutions results of the most recent survey Number of Number of was set as a goal to ensure the appear opposite and speak to the Type produc- perform- in the CBD tions ances* supplementation of the agency’s economic value of this industry national government grant. 9 162 full-time students for the Central City as well as Ballet/dance 29 138 the opportunities to grow it from For the 2014/15 season ahead, Concerts 31 40 3 530 part-time students strength to strength. planned capital works projects Drama/ have been estimated to be in the 45 241 1 648 full-time staff comedy region of R86m, and will include maintenance, enhancements and members (up from 1 541 in 2013 Screening of 5 10 and 1 200 in 2012) The performing arts films upgrades to internal structures such as foyers and public facilities as well There are six theatres in the CBD, Musical 8 187 as operational equipment relating Cta egories of learning ranging from the independent theatre to staging. External upgrades to the Fugard Theatre in the East City to Advertising and marketing facade are also planned. - the Artscape Theatre Centre on the Opera 3 14 - Design, art and fashion Foreshore, a multifunctional venue Youth theatre 14 127 - Film & TV and music that is also home to a number of performing arts companies CAPE TOWN - Business, vocational and IT Variety shows 2 3 including Cape Town Opera, the CENTRAL CITY LIBRARY - Health & beauty and hospitality Cape Town Philharmonic Orchestra (*760 performances, up from 708 in 2012/13) - Pre-primary, primary and and Jazzart Dance Theatre, as well Artscape also hosted: 663 144 secondary schools as Fine Music Radio. people visited the city’s main library, situated in - English and other language 35 exhibitions and conducted the CBD, during 2014, schools Ar tSCApe’s value to the CBD1 educational projects. averaging out to 1 817 - NGOs such as ZipZap Circus 67 An agency of the national visits per day. and the Rainbow Academy Department of Arts & Culture (for the performing arts) Ar tSCApe’s people and (DAC) belonging to the provincial audiences Western Cape Government (WCG), - Artscape employs 100 Cultural and public Artscape manages the Artscape permanent and contractual FUGARD educational resources Theatre Centre. Its priority is to employees. THEATRE build a robust economy, create This independent Libraries: Cape Town Central job opportunities, promote social - It provided 100 skills theatre in the CBD Library, National Library of South cohesion and transfer skills for development opportunities put on 10 major Africa and its Centre for the Book sustainable growth in the arts and to staff, 7 technical training productions in 2014, programme attendances (with Free Wi-Fi in public spaces: culture sector. From the staging hosted 125 000 people and of internationally acclaimed Stellenbosch University), The Company’s Garden, upper 8 Extended Public Works employed 90 people St George’s Mall and Harrington productions such as War Horse (see picture above) to its dedicated Programme (EPWP) internship across all shows, Square (facilitated by the Cape opportunities, 26 Cathsseta including operational Town Partnership – see page 28). outreach programmes in previously disadvantaged communities, learnership opportunities. staff. 22 museums and public art Artscape is strongly committed - 333 298 people visited the galleries dotted around the to being a vehicle for growth and centre to attend events, up 1 All information for Artscape was taken Central City transformation in performing arts. from 309 717 the previous year. from its Annual Report 2013/14. The State of Cape Town Central City Report: 2014 – A year in review | 31

c reative T o help Creative Cape Town better communicate with and support the development of the local creative industries, over 300 creatives and supporters completed a survey on the local creative economy. Here’s a cape town graphic snapshot of who replied and what they shared with us. survey 2014

Survey Interest in Favourite creative Business respondents (%) further education events to attend (%) financing

creatives 61% 60 cultural events 10 event supporters of recipients 49 want short music gigs course workshops other 56 33% markets 53 10 fans & art shows buyers of recipients want more instruction 69 in creative arts public art events want more info on business finance opportunities Favourite ways to learn Creatives want M entorship Years worked in the about new events (%) more info on (%) programmes creative industry (%)

Oy nl word of mouth Facebook posters internet Twitter are currently part of a 40 education mentorship programme 0-2 years cultural 46 18 35 events 52 business 44 mentoring 10 years+ 67 35 73 marketing 56 5-10 years 3-5 years 64 collaboration 23 24 82 opportunities But think young creatives need more mentorship

Aims & benefits Gender of International Top 5 creative of networking (%) respondents influence %( ) sectors (%)

73 meet collaborators 39 design industry updates 72 71 inspiration 30 have 3 industry news 58 worked abroad education meet new clients 56 64% 22 female visual arts 23 born in 6 Cape Town performance arts 36% 11 30 male from another communication continent 8 from elsewhere in Africa

Favourite way Respondents’ Preferred Completed to communicate (%) age (%) funding sources (%) education levels (%) blogs events events Facebook Twitter websites 32 5 17 10 crowdsourcing 30 11 grant funding 52 21 46 41 49 53 57 10 32 46 24 private equity

86 17-24 yrs 25-34 yrs 36-44 yrs debt financing 45-54 yrs 55+ yrs 32 | 04. Connecting the Central City to the rest of the world

TR ANSPortATION in the CBD

A strong and reliable public data. All data represents a 24- transportation network hour period: ie the number of trips taken reflects an average ++9.74% come from the plays a vital role in a day in Cape Town. West Coast. There are 12 304 CBD, not least of which off-street, open bays (average The following data has been ++5.62% come from monthly rate per bay: R720). is affecting behavioural extracted from the survey for northern suburb. change and getting people being relevant to the Cape Town ++4.02% come from out of private motor Central City. 9 831 of off-the-street eastern suburbs. bays are under cover (average vehicles and onto more ++1.66% come from monthly rate of R962). sustainable modes of CBD specific data Malmesbury/Paarl. transport. Of all off-street/undercover ++6.1% of all commutes in the bays available, metro region are from areas A city’s strategy to provide a outside the CBD into the CBD transportation network that (5.6% of the greater Cape Town P arking for private 2 098 are available for services all its communities will Metropolitan Area to CBD + motor vehicles in casual, daily use. also support the transformation of 0.5% of greater central city2 to the CBD that city into a more sustainable the CBD). The average rate for a casual destination overall. The data off-street parking bay is across these pages shows how ++Weighted data shows that There are 2 000 kerbside people move around Cape Town, trips with a destination within parking bays with rates of R54.85/day or both in the CBD and in the larger the CCID area account for R12/hour or part thereof. R9/hour. metro region. The figures can be 2 553 113km travelled by the attributed largely to Transport population. for Cape Town (TCT), a dynamic ++Of the previously estimated operational division at the City of 350 000 people who move Cape Town, supported by data from through the CBD every day, interest groups striving towards this new data set indicated that Traffic alleviation and pedestrian safety project the creation of a low-carbon approximately 151 403 people Central City. Transport for Cape Town is months to implement and will end their trip in the CBD for currently undertaking a review see traffic lights synchronised purposes of work or education. of traffic signals and pedestrian to enable “exclusive pedestrian ++The average distance driven to crossings at 110 intersections in control”, which stops all traffic Cape Town Household the CBD is 16.9km. the CBD to better synchronise to allow pedestrians to freely 1 and improve timing. At a cost of navigate intersections in whichever Transport Survey ++The average trip time is R6.5 million, the aim of the project direction they require without 61.8 minutes. The Cape Town Household is to reduce delayed commute fear of being hit by a turning times through the CBD (particularly car. Installation of audio-tactile Transport Survey was conducted by The average speed is ++ at key strategic junctions), increase pedestrian push buttons will also TCT in 2013 and results processed 18.5km/hour. and analysed in 2014. Using mobility overall and increase take place, continuing to expand a sample size of 30 196 Cape pedestrian safety. The project, universal accessibility for people Town commuters, the survey was Where do daily commuters begun in mid-2014, will take eight of all abilities in the CBD. designed to analyse the way people into the CBD come from? move around the metro region. It is ++21.8% come from thus not a population survey of all Mitchells Plain/Khayelitsha. trips taken each day in Cape Town, but rather a sample that yields ++18.4% come from Klipfontein/ important numerical indicators. False Bay. The data was collected by TCT ++15.8% come from Table Bay. and looked at commuting trips taken for work and/or education ++12.5% come from Tygerberg. purposes only. A weighting system ++10.4% come from the was developed in order to use the southern region (southern sample data as a means to project suburbs and south peninsula, metro-wide averages and excluding False Bay). forecasts for average transport

2 In this particular instance, the “greater 1 As collected and processed for the Low- central city” refers to the suburbs directly Carbon Central City Strategy, 2014 (see also bordering onto the Cape Town CBD, formally pages 32-33), by Royal HaskoningDHV and the referred to as the Central City elsewhere in City of Cape Town, 2013 this report. The State of Cape Town Central City Report: 2014 – A year in review | 33

East pier East pier East

South Arm

Breakwater V&A WATERFRONT

BEACH HARBOUR TO PAARL/ N GAUTENG KEY: BUS STATION MyCiTi update BUS STOP The City of Cape Town continues There are 22 MyCiTi stops in the CBD. d v l to roll out its highly successful and B y D 1 There are a total of 15 direct routes a still relatively new public transport V B L r CTICC into and out of the CBD, which are a B e network – the MyCiTi bus rapid g A part of a system of 27 routes overall. n PORTSWOOD

L DF Malan DF

Dock WALTER SISULU AVE a transit system.

Jan Smuts Jan G Green TrackPoint D

N There are currently a total of 35

A As of the end of September 2014,

HERTZOG BOULEVARD M stations and 535 operational bus

N MyCiTi expenditures (investment)WOODSTOCK

O stops on the system as a whole Hans Strijdom S have been as follows.

MAIN Civic L across the metro.

Centre E

HEERENGRACHT LOWER LONG LOWER N SIR LOWRY ROAD Mechau Old Marine BARNARD CHRISTIAAN Operational: R1.8 billion. 2 Thibault CBD passenger traffic reveals that Square Prestwich NEWMARKET

Upper Portswood Portswood Upper during the whole of 2014: Boundary Capital: R5bn (all in the form of Riebeek National Treasury grants). N2 boarded MyCiTi LOOP ++2 858 452 people CAPE TOWN RAILWAY TO AIRPORT STATION STRAND buses in the CBD. R300m Chepstow BREE There are three main MyCiTi transit STRAND stations in the CBD: Thibault Square, ++2 737 276 people alighted from a R250m Ocean View Castle ADDERLEY CASTLE OF Adderley Street and Civic Centre. MyCiTi bus in the CBD. GOOD HOPE Merriman Hout Grand

St Georges Mall R200m Parade

LONG SHORTMARKET Burg DARLING Parliament 250 000 R150m BUITENGRAGT GreenmarketSquare Longmarket City Hall Church Caledon GREEN POINT R100m

Burg Spin CPUT WALE Albertus 200 000 2011 2012 2013 2014

Dorp

PLEIN TO MUIZENBERG M3 CANTERBURY

Leeuwen BUITENKANT Keerom Commercial

Parliament

Harrington Pepper 150 000

BREE

LONG

Queen Victoria ROELAND Bloem DE WAAL LOOP Respondents who agree SIGNAL HILL Buiten 100 000 Orphan 69%

Garden 2012

The Company’s Company’s The Government Ave 2013 72% BUITENSINGEL

Hope 2014 82% BUITENKANT 50 000

JUTLAND

D R ORANGE

L 0 L I JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

HATFIELD

L ANNANDALE A

N MILL BUS STOPS BUS STOPS STATIONS STATIONS G

I S ALIGHTING BOARDING BOARDING ALIGHTING Transport on call This graph shows the improved functionality and connectivity of public transport The City of Cape Town’s Transport Information Centre (TIC) is a 24/7 in the CBD since the opening of the MyCiTi Adderley Street station in October toll-free call centre that provides information on public transport 2014, which alleviated the load on other main stations. options, prices, routes and timetables across the metro region. These include the MyCiTi bus rapid transit system and other public bus services,NEK KLOOF Metrorail, taxis, dial-a-ride and park-and-ride facilities, 1 MyCiTi began operations in 2010 with an estimated rollout across the metro region and into the GARDENS DE WAALPARK greater Western Cape area of between 15 and 20 years. and kerbside parking. Represented in the map above are the MyCiTi More than 20 years stations and stops within the CBD. 2 Figures courtesy Johannes Koen and Transport for Cape Town, City of Cape Town

TAMBOERSKLOOF KLOOF

ORANJEZICHT

TO TABLE MOUNTAIN & CAMPS BAY

Trek SIGNAL HILL SIGNAL

Tafelberg Rd TO CLIFTON

TABLE MOUNTAIN NATIONAL PARK 34 | 04. Connecting the Central City to the rest of the world

A LOW-C RBON STRATEGY for the Central City and surrounds To promote a partnership-driven sharing of outcomes, information These two pages contain some of approach towards environmental and tools with people and the highlights from the strategy. and economic urban resilience, organisations from the private, The full report can be found at the Cape Town Partnership (see residential, public and government www.capetownpartnership.co.za/ page 28) and Sustainable Energy sectors. The vital blueprint equips our-work/low-carbon-central- Africa worked with the City of Cape all parties to collectively take city-strategy Town and other key stakeholders ownership and reduce the carbon to formulate a blueprint to footprint of the Central City and transform the Central City and its surrounds, to ensure this economic surrounding area (see map to the hub follows the example of leading right) into a leading urban hub international downtowns towards of low-carbon emissions. New sustainability. research and energy modelling enabled the team to create working The strategy particularly indicates carbon emission scenarios for this that reductions in single- compact yet crucial area of the occupancy motor vehicle use, metro – an area that could make or along with a sharp decline in the break Cape Town’s environmental amount of electricity consumed, and socioeconomic future. are going to be the biggest levers for low-carbon change in the area. The outcomes of the year-long strategy development initiative, Accomplishing this will require finalised in February 2014, include a continued enhancement and new approaches in policy and expansion of solutions such as action that encourage stakeholders carpooling, public transportation, to work in synergy with each other energy-efficient retrofits to to reduce overall carbon emissions buildings, and a more pedestrian in the area. A fundamental aspect and non-motorised urban of this low-carbon strategy is the environment. Cape Town Central City and surrounds formed part of the Low-Carbon Strategy.

W aTERFRONT M INa rD

road beach high level rd d

MAIN R GREEN POINT rd Signal Hill

level duncan strand high drive rd st marine

BO KAAP st CBD

FW De Klerk blvd n1 ONG ST buitengrachtL

the company’s TRAINS TAMBOERSKLOOF garden sir lowry rd

rd k WOODSTOCK ne n2 n oof el l GARDENS so k n m CTORIAV i

t a ndela

S b DISTRICT SIX lv d rD

orange

upper VREDEHOEK

de waal drive

Devils Peak n2 Table Mountain The State of Cape Town Central City Report: 2014 – A year in review | 35

The carbon footprint of the area Where do the Central City’s carbon emissions come from?

Transportation The carbon footprint Government buildings of the Central City 40% Retrofitting of public lighting in 2012 3% 7 100 During 2014, the City of Cape Tera Town upgraded approximately joules Energy consumed 13% 800 street lights across the annually in the 44% CBD at a cost of R824 364. Central City This was part of a citywide project to replace older 12 600 Terajoules mercury vapour street lights with new technology and The energy needed by the Central Residential a more efficient lighting City to power itself in 2030 if we building source, namely sodium do nothing to change our use vapour lighting. Commercial buildings (retail, office & lodging) Which sectors consume the most energy in the Central City? Transportation By totalling all the passenger-kilometres travelled into, around and out of the Central City, we get an excellent snapshot of people’s regular way of travelling:

54% Cars 24% Trains Electricity usage 12% Buses Commercial use of electricity in the Central City: 9% Taxis 1% Non motorised

Government buildings in the Central City use H OWever electricity for: Different forms of transport use different amounts of energy: BUS 8% 87% 5% Commercial electricity demand CAR in the Central City taxi & train

Residential Electricity Demand in This means that while they account for 54% of passenger the Central City kilometres, cars use 87% of all transport energy

Air conditioning Water Lighting heating The estimated amount 8 779 of energy required for Cooking tera transportation in 2030 to keep joules up our current use

We can reduce our future transport energy demand to the following levels: 8 263 TJ 7 655 TJ 7 338 TJ 6 670 TJ Refrigeration If we use “Own If we use more If we avoid If we “Travel Steam” transport public transport transport by Smart” by ride like walking and like trains as living closer to sharing and cycling well as buses work or working carpooling Other from home 36 | 01. Doing business in the Central City

IN N CO CLusION: Future reports

The State of Cape Town formula is now in place that enables developmental sector over the Central City Report will our research and editorial team next few years. to collect, analyse and deliver move into its fourth consistent, reliable, year-on-year ++Continue to focus on the growth edition when we review comparatives, while adding new, of the MyCiTi bus rapid transit system and the substantial 2015 early next year. relevant financial indicators along the way. impact it is having on making With three editions already printed, the CBD, in particular, a more inclusive, people-friendly the publication is delivering on To this end, the 2015 report will: environment, and the city overall its mandate to promote the Cape Garner ever-increasing input from one that acknowledges the huge Town CBD in terms of providing ++ both the private and public sector. importance of sustainability for strategic place- and market-based future investment. intelligence towards retaining ++Continue tracking and trending existing and attracting new the business sentiment and ++Include an analysis on the impact investment interest. confidence indicators. that the title of World Design Capital 2014 had on our CBD. Significant strides forward have ++Include an in-depth analysis of been made since the inaugural the growing residential market in We look forward to bringing you 2012 edition, and a strong working the CBD, predicted to be a strong these new results in a year’s time. Credits & Acknowledgements

Sources of First Thursdays Sustainable Energy Africa, E ditorial team information Cape Town Partnership, City of Infecting the City (ITC) Cape Town: Low Carbon Central E ditors & authors Artscape Theatre Complex: Integrated Strategic City Strategy 2014 Andrew Fleming (senior researcher: Annual Report 2013/14 CCID/Cape Town Partnership) & Communication, Branding and The Fugard Theatre Marketing Department, City of Carola Koblitz (communications Business Process enabling manager: CCID) South Africa (BPeSA) Cape Town Interactive Africa, TNS Research Surveys: 2013/14 Design Indaba Economic Impact Community Satisfaction Survey Contributing writer/ Cape Argus Pick ‘n Pay Cycle Tour Study (2014) (conducted for the City of copy editor Cape Town) Cape Craft & Design Institute Horwath HTL South Africa, The Brent Smith (CCID) (CCDI) Accommodation Performance Tourism, Events & Economic Managing editor Review and Forecast Report Development, City of Cape Town Cape Philharmonic Orchestra Aziza Patandin (CCID) Jones Lang LaSalle Cities Transport for Cape Town, City of Cape Town International Art director Research Center: Global300 Cape Town (including MyCiTi Bus Sam Bainbridge (Design Infestation) Convention Centre: Integrated Report (November 2014) Rapid Transit statistics and the Annual Report 2014 Cape Town Household Transport Additional infographics Life Residential (Cape Town) Cape Town International Survey 2013/14) Ivan Colic (pages 6-7, 34-35) Oliver Whyte (pages 22-23) Jazz Festival Mayor’s Office, City of Cape Town UK Government’s Foresight Cape Town Opera (CTO) Future of Cities Project, The Photographic contributors McKinsey Global Institute: Business of Cities, Emily Moir and Brent Smith Cape Town Partnership (and Urban World: The Shifting Global Greg Clark Bruce Sutherland (courtesy including its Creative Cape Town Business Landscape, 2013, City of Cape Town) programme 2014 Survey) Metrorail Wesgro Carola Koblitz Ed Suter Cape Town Tourism National Department of Trade & Industry (DTI) Lisa Burnell Climate Information Platform, Jacques Marais hosted by the University of Pam Golding Properties Johan Dempers (aerial images) Cape Town Scott Arendse Royal HaskoningDHV Production City of Cape Town Economic South African Property Owners infestation.co.za Performance Indicators for Association (SAPOA) Cape Town report, Quarter 2 Printer: Fairstep (April-June) 2014 South African Revenue Service CCID research, data and Department of Economic Sothebys Realty surveys Development & Tourism, Andrew Fleming Western Cape Government Statistics South Africa: The South Brent Smith African National Census of 2011 Carola Koblitz Economic, Environment & Spatial Strategic Development Gene Lohrentz (Geocentric Planning Directorate, City of Information Services) Cape Town Information and GIS Department, City of Cape Town Anneke Greyling (Sentinel Consulting)

A | 01. Doing business in the Central City

On cities as emerging markets for business “In the latest cycle of globalisation, businesses are focusing on cities and city dwellers more than ever as a means of enhancing their growth and profitability. Cities are emerging as the key market for business ...” On urbanisation and re-urbanisation “With re-urbanisation comes new business locations in cities, including the densification of business districts, the rise of the second and third districts, new campus city centre locations, new innovation districts and the redevelopment of old industrial locations into new corporate and enterprise hubs.”

On demographics “The importance of short travel times between work and childcare is encouraging inner-city living. Individual preferences have changed from favouring working enivironments in attractive ‘green’ areas to those in amenity hubs, where restaurants, bars, coffee shops and public transport links are all within easy reach. The net effect is that companies see re-urbanisation as the key to recruitment ... of employees who are clustered in city centres.”

Emily Moir & Greg Clark The Business of Cities Foresight Future of Cities Project

This publication is brought to you by: Cape Town Central City Improvement District (CCID) 10th Floor, The Terraces, 34 Bree Street, Cape Town 8001, Western Cape, South Africa Tel: +27 21 419 1881 www.capetownccid.org