DESPITE boasting a R5.7billion investment in new property development and the opening of 400 new businesses in Cape Town’s city centre - tenants in the once bustling business districts tell a different story.
From St George’s Mall to Long Street, To Let signs dot vacant shop windows. Empty retail spaces on nearly every corner are evident of Covid-19 laying waste to the local economy. Tenants bemoan the high rates they are expected to fork out, at times for dilapidated and cockroach infested buildings.
Although the City has also seen a slew of new property development projects on the Foreshore and the inner city, business is not booming for all.
The owner of Caffeine, a coffee shop in St Georges Mall, Desireè Damon, was among new businesses which opened during the pandemic. Damon opened her shop after she was retrenched after 28 years.
“To this day I’m not seeing a return on my investment, it’s very very quiet and the rent is expensive,” she said.
Damon shares her rent with 5th Avenue Hair, a hair salon, next door.
The salon’s owner Catherine Sargeant, told Weekend Argus she forked out R19 000 a month for the entire space.
Further down St Georges Mall the vacant shops are standing out like a pole above water. Windows bestrewed with To Let signs are hard to miss.
Owner of Kurdish restaurant Mesopotamia in Burg Street, Barron Kalay, said businesses received little to no help from the government during the pandemic.
“Where is the people? ... Since the start of Covid, it’s been like this ... the City said it would assist but it didn’t.”
Another business owner, Gurjeet Dyllon, who was forced to close his shop in St George’s Mall said the high cost of rent was behind a lot of closures.
“I know landlords also have overheads to pay but yes the rent can be a problem too, it’s overinflated it can be less,” Dyllon said.
“Just before Covid-19, my lease was ending and I saw my business is not going anywhere, so I closed it.”
Two women who work for a business registration company, operating from the Waldorf Arcade, said they regularly saw new businesses opening and closing.
“Then it’s a hair salon, then it’s a jewellery place,” the one said. They could not be named since they’re not allowed to speak on behalf of the company.
“They just don’t last, it’s concerning ... the shop here opposite us (has been) empty for roughly four years now.”
General manager of Forty 8 Cafè, Jeancy Mukendi, said although they had a bond for their property, the financial impact of the pandemic was wrecking havoc on profits.
“Before Covid, we had about 35 customers on a daily basis, we’re now lucky to see 15,” Mukendi said.
He said they’re also part of the Forty 8 Backpackers Hotel which has seen fewer bookings since the start of the pandemic.
“We’re still not seeing an influx and we’re trying to recover ... it’s hectic.”
Shop owner Rana Mashud said his brother spends R40 000 a month on rent. That’s excluding their water and electricity bill.
“Our rent increased with R 2800 since last year,” Mashud said.
Owner of the Kings in Cape Hotel, Goiton Habtu, said their R70 000 bond payment was making it hard to stay afloat.
“Our rooms are empty, we have 20 rooms and only six are occupied,” said Habtu.
“We’re now clinging to hope that we will see an influx in business during the holidays.”
The restaurant on the first floor of the hotel was also empty when Weekend Argus visited.
Waiter Samuel Morgan said it’s very quiet. “Since the pandemic we’ve been this quiet, we’re only busy on weekends,” Morgan said.
Commercial property broker at Officeplace, Anthony Aldum, said St George’s Mall was seeing an exodus in businesses.
“There’s a lot less foot traffic and the prices are too high in St George’s Mall, that’s why people are leaving,” he said.
Weekend Argus.