Johannesburg - Sandton’s central business district (CBD) will need to change to retain its top position as the preferred destination in South Africa for both corporates and multinationals trying to establish a presence.
Ken Reynolds, the Gauteng regional executive for property finance at Nedbank corporate and investment banking, said Sandton would have to become the place to live and play, as well as remaining a primary work destination, to retain its top position.
In line with trends in all the major capital cities in the world, this involved addressing key issues like transportation, infrastructure, design and affordability, he said.
Reynolds said there had been a sharp increase in recent years in construction activity within the Sandton CBD, mainly for office and residential buildings.
Congestion
With more commuters and motorists entering the city, however, congestion was peaking at levels at which the transport system was no longer sustainable, he said.
Reynolds’ view was that this was the reason the City of Johannesburg’s Ecomobility World Festival in Sandton last month came as relief for some.
“One-way lanes and contra-flow lanes for buses and taxis were instrumental in correcting the traffic flow and creating a smoother, more seamless journey,” he said.
“While some frustration has been experienced, there is consensus that there should be a follow-through of the interventions implemented during October,” he added.
It was encouraging, Reynolds said, to note that the municipality intended to continue the interventions in the near future through an affordable, integrated transport system, cycle lanes, widened pedestrian pavements and express lanes in the surrounding areas.
He said these measures were in line with trends in London, New York and Paris, where transport had been redesigned to create a multipurpose environment in which to “work, play and live”.
Reynolds said lower Manhattan’s investment in transit infrastructure showed the measurable, positive returns it had so far brought to the New York CBD.
It had revived residential, tourism and hotel demand, while some more creative industries were now also claiming lower Manhattan as their new address.
“While office buildings and residential developments are on the rise, the costs associated with building here are still exorbitant.
“Developments within Sandton see developers having to pay high improvement contributions, particularly for additional power, water access and rezoning.
“Further, rates and taxes in Sandton are probably the most expensive in South Africa, leaving the developer with financial challenges when they build here,” he said.
“These costs are undoubtedly passed down to businesses and individuals and will influence decision-makers on whether or not to establish operations and live in the area.”
Reynolds said good infrastructure was also lacking in the Sandton CBD, and that many would agree there was still room for improvement in access to electricity and sewerage services. Local authorities also needed to improve their efficiencies.
He said property developers had a key role to play in the future of the Sandton CBD, with future proofing businesses one example.
Reynolds said the possibility of a surplus of available parking space could become a reality when the public transport system was addressed. These surplus spaces could be re-utilised by designing an alternative use for them during the construction of any public transport system.
More green
A structure should be designed, he believed, so that the type of use of any space could be changed easily.
Buildings with higher clearance could, for example, enable the space to be re-utilised as an office or a residence. And adding more green, open spaces to a business area would improve hygiene and allow for a friendlier city centre, he said.
Overall, however, Reynolds said he thought the Sandton CBD was more attractive than most other African cities. It was able to boast better infrastructure and less congestion.
“The hotels, the Sandton Convention Centre, the many shopping centres and entertainment options, the presence of the JSE and the many professional services operating from Sandton continue to spur both business and residential interest,” he said.
BUSINESS REPORT