The ailing office space subsector of the property market is starting to see a recovery after Covid-19 caused thousands of companies to adopt work-from-home models to protect employees, resulting in many businesses ending their leases or opting for smaller spaces as they embrace hybrid remote working arrangements on a semi-permanent basis.

Following real estate investment trust company Attacq’s pre-close update on November 29, in Waterfall City, CEO Jackie van Niekerk told Engineering News that many companies had begun to once more recognise the importance of retaining and encouraging an office-based work environment for the sake of nourishing and preserving their company cultures, as well as for the important function of facilitating knowledge transfer, which she said was not being effected properly through permanent work-from-home arrangements.

She said that, while companies were now opting for somewhat smaller office spaces, they were increasingly adopting hybrid remote working arrangements, whereby employees could work from home for two or three days out of the week.

This is all good news for Attacq, which has seen an uptick in office rentals over the past six months and expects this upward trend to continue into 2023.

“We continue to attract office users. By no means is the office market dead. It is actually alive. People are returning to the office,” Van Niekerk said.

She said that several large internationally recognised brands – such as Deloitte, PwC, Pfizer, Cisco, Honeywell, Stryker, Calvin Klein, Reckitt and Lego, besides others – continued to demand office space across Attacq’s portfolio, owing to the quality of supporting infrastructure and the safety afforded them – particularly in Waterfall City.

Van Niekerk also noted an uptick in retail performance, particularly at Mall of Africa, which saw 83 000 people on Friday, November 25, and 94 000 on Saturday, November 26, visit the retail centre to take advantage of Black Friday specials ahead of the Christmas holidays.

She noted that, while overall footcount was still below 2019 levels, it was showing signs of improvement.

Attacq’s residential developments across Waterfall City have also benefitted from robust demand, which Van Niekerk attributed to the safety and lock-up-and-go convenience afforded to residents.

Overall, Attacq reported a 98.4% collection rate since June, up from 97.8% for the preceding six months. The occupancy rate also went up from 92.1% in June to 92.4%, while client retention rates jumped significantly from 42.9% to 89%.

The company reported that 36 new corporate clients had been secured as lessees over the past six months, while trading density went up from 12.6% in June to 18.5%.