pre-feasibility assessment report - Innovationeasterncape.co.za

African Development Economic ConsultantsADECAbsorption Forecasts. Based on recent absorption trends, the NMBMMarket Area can expect annual net absorption in the range of 3,000 to 4,000square metres per year. Thus, there would be net absorption of about 15,000to 20,000 square metres of office space in the market between 2010 and 2015.This forecast is consistent with employment data suggesting similar growth inoffice demand.Overall Demand. These analyses suggest baseline office demand in therange of about 17,000 to 20,000 square metres by 2015, or about 3,400 to4,000 square metres on average per year. As noted above, the currentoverhang in supply (particularly of new, expensive grade-A space), coupled withthe economic downturn, will result in slower or even negative net absorption inthe short term with growth likely after 2011. There will be continuing demandfor affordable B-grade space, especially among smaller tenants that are lessaffected by the economic downturn.Location Selection and Competitive FrameworkA new science park may capture a portion of this demand, but there are anumber of competitive locations throughout the Nelson Mandela Bay area thatwill compete for this market. The location of the Science Park will influence itscompetitiveness for attracting office tenants. A site selection process identifiedseveral key factors for consideration in assessing the competitiveness of thepark. These criteria include the following:General Office Site Characteristics• Attractive, safe and secure office or mixed-use environment• Location near high-quality (e.g., executive) housing, whilst proximateto staff housing• Proximate to restaurants and retail options• Serviced and accessible to the region’s main arterial road network.• Proximate to anchor corporate, government, or other business uses(such as for business service companies)• Proximate to mid-income or affluent household base (such as forprofessional service companies)R&D-Specific Site Characteristics• Proximate to academic, corporate, government or other institutionalresearch and funding base (and to centres specifically-focused onresearch available for commercialisation)• Proprietary relationships established with institutions (see Section 6)• Proximate to specialised equipment available at institutions• Proximate to airport with international (or linkage) service• Proximate to student or other low-cost, highly-skilled laboratorysupport• High-amenity value (such as ocean viewsheds or proximate to golfand recreation facilities, etc) and relative seclusion.103 Algernon Road, Norwood (Johannesburg). Tel (011)728-1965 / 6690 Fax (011)728-8371Adec@ADEC1.com. Suite 131, Private Bag X5, Norwood 2117 SOUTH AFRICA 71