Demand for CBD office space has fallen
THE demand for central business district office space has dropped significantly in Zimbabwe, leaving vacancies of about 60% on average as a result of ongoing problems with parking, street vendors, and high pollution levels as well as rising rentals, Standardbusiness has established.
According to the United Kingdom-based real estate global agency, Knight Frank’s latest market report, Zimbabwe’s real estate market faced significant challenges from hyperinflation and the depreciation of the Zimbabwean dollar last year.
“In the office market, many commercial landlords are sitting on high debtor balances,” reads part of the report.
“This is a result of many businesses that failed to pay their rents during lockdowns.
“The situation has been worsened by the depreciating value of the Zimbabwean dollar and average upward quarterly rent revision by a staggering minimum of 150% due to inflation.
“With persistent issues regarding parking, street vendors and high levels of pollution coupled with the increased rents, demand for CBD office space has fallen sharply, leaving voids of around 60% on average.”
However, the report pointed out that several industries, including the suburban office market and smaller neighbourhood retail centres were expanding.
“Demand has not necessarily dried up entirely, but occupiers’ focus…