In the world of real estate, the mantra “location, location, location” remains a golden rule. A property situated in a prime area with easy access to transport, amenities and facilities is typically considered a favourable investment choice. Commercial properties with modern designs, adequate space and up-to-date technology will appeal more to potential investors. Mantsi Moiloa, director of strategy and consulting at Cushman & Wakefield | BROLL shares more insights on how safer cities contribute to investment grade properties. 

Not investment grade 

One of the key factors in determining if a commercial property is investment grade that often gets overlooked, however, is the safety of women and its direct impact on the valuation of commercial property assets. Properties in an area that cannot ensure security for all, especially for women, who are a big part of the workforce and face a higher likelihood of being victims of crime in South Africa, simply aren’t investment grade. 

Security concerns 

Potential investors take safety issues into account when considering the value and investment potential of commercial properties. Similarly, good businesses take their duty of care for employees’ safety seriously. 

A property owner can go to great lengths to ensure that a building offers a safe environment, but no building is an island. Each one is impacted by the urban fabric around it – public spaces, resources and infrastructure and neighbouring properties, both public and private. 

Mantsi Moiloa, director of strategy and consulting at Cushman & Wakefield | BROLL. 

Public-private collaboration 

While the government must take a proactive role in crafting policies and investing in infrastructure that pursues safe and investable spaces, private sector co-operation can amplify these efforts. 

Through partnerships, resources from both sectors can be pooled together, allowing for: 

  • Improved infrastructure development. 
  • Effective policing strategies. 
  • Well-designed and functional buildings. 
  • Well-maintained public spaces. 
  • Appealing and inclusive commercial districts. 

Safer cities 

Collaborative efforts make cities more appealing by promoting a secure environment where employees – particularly women – can feel safe while working or residing within the area. Cushman & Wakefield | BROLL believes that opportunities abound for public-private projects to tackle real estate challenges head-on – with win-win results. 

Safer cities drive up the demand for properties – commercial and residential – making them more valuable and increasing the tax base for the government. Conversely, when left unchecked, crime rates and unattractive living, commuting and working conditions lead to the deterioration of an area, its buildings and its property values. 

As people strive towards building and maintaining safer, more inclusive spaces across South Africa, real estate investments will thrive in tandem with community well-being. 

Issue: Ensuring commercial properties are investment grade. 
Solution: City environments that are welcoming and safe spaces for everyone, attract investment. 

Building & Decor

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