Q4 2017 Johannesburg Industrial Market Report

The Johannesburg industrial market ended 2017 with a relatively low vacancy rate, and a substantial development pipeline. However, this may overstate buoyancy and confidence in the sector. Beneath the surface there seems to be a segmented market developing: on the one hand, Grade P accommodation continues to be landlord driven, on the other hand, an occupier market is developing in the Grade A and Grade B space, with landlords incentivising occupiers with lower rental rates. This will play a significant role in the deals of 2018.

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