Frequently Asked Questions about Montague Gardens , Century City and the West Coast Growth Node
Want to know more about Montague Gardens, Century City and Cape Town’s West Coast Commercial and Industrial Property node? Read our FAQs. We have outlined frequently asked questions about renting or buying commercial and Industrial Real Estate in the greater Milnerton Area which consists of Montague Gardens, Century City, Montague Park, Killarney Gardens, Richmond Park and Atlantic Hills.
Why should I locate my business in Montague Gardens?
Top 10 Reasons to locate your business to Montague Gardens.
Montague Gardens is:
Close to Century City, Canal Walk Shopping, Residential and Hotels
15 Minutes from Cape Town Harbour and Paarden Eiland
Close To N1 National Road to access Cape Towns Northern Suburbs, Paarl and Stellenbosch
Montague Gardens is the gateway to Cape Town’s rapidly growing West Coast Growth Node.
Multiple road access points and 15 minutes from Cape Town International Airport
Close to top courier and logistics companies
15 minutes from the Cape Town CBD
Close to Labour
Close to Public Transport
Well run City Improvement District
Is there land for development in Montague Gardens?
What rentals can I expect to pay for a warehouse in Montague Gardens?
Currently, the lowest rental per square metre in Montague Gardens is approximately R50. This is for an older, low eaves building with limited yard space.The highest rental is approximately R100 per m² for a dedicated courier building which has a large yard, i.e the building covers only around one third of the land
On average, rentals for modern industrial buildings with reasonable height, reasonable access and non asbestos roofing range between R60 – R 70 per m².
What is the difference between a Captitalization rate and Net Initial Yield?
Capitalization rate and Net initial yield are similar but not the same concept although they are frequently used interchangeably by brokers.
Capitalization rates imply that the property is let at market rentals into perpetuity and used to compare similar investment properties. Net yields are simply the first year’s income less expenses divided by the purchase price expressed as a percentage. This is the same basic formula usde in determining a Capitalization or “Cap” rate but the essential difference is the rental is the actual net rental and may be above and below the market rental.
More advanced methods of valuation use discounted cash flow and net present value comparisons.
What is the difference between Gross and Net rentals?
Gross Rental is the total rent payable by a tenant, whereas Net Rental is the tenant’s rental portion that excludes their contribution to property operating costs. These excluded costs could comprise of rates, insurance, property maintenance, security etc. If the Landlord is a registered VAT vendor (most commercial and industrial landlord’s are VAT vendors) then VAT will be added to the rental. Generally, Airport property quotes Gross rentals excluding VAT.
Other terms for net leases are a FRI (Fully repairing, maintaining and insuring lease) lease or Triple Net Lease. Both these terms imply that rates, insurance and property maintenance are excluded from the net rental and are for the tenant’s account.