Johannesburg Industrial Market Dynamics, Q2 2024

Functionality of industrial spaces is becoming increasingly important, with many properties essentially being declared obsolete if they don’t offer (for example) sufficient reticulation areas, open floorplates, tall height to eaves, and so forth. With regard to logistics properties especially, premises older than five years are already needing updating.

Limited supply of stock and lower risk appetite by banks to fund speculative developments in the current environment will continue to support demand for existing stock.

There has been limited movement in terms of vacancies, as positive take up is offset by new supply entering the inventory. Prime vacancies remain nominal (c. 1%), with changes mostly attributed to transition periods between tenancies.