Lew Geffen Sotheby's International Realty Commercial & Industrial Services Logo
Beyond the Cubicle: Why Industrial Tenants Are Driving the Next Wave of Commercial Real Estate Growt

Beyond the Cubicle: Why Industrial Tenants Are Driving the Next Wave of Commercial Real Estate Growt

From BPO firms requiring high-volume distribution hubs to storage providers scaling up capacity for e-commerce clients, today’s industrial occupiers are redefining space requirements. And landlords are racing to meet demand.

Where Big Industry is Focusing:

  • Epping Industria: Dominated by FMCG, pharma, and BPO warehousing requirements
  • Montague Gardens: A magnet for last-mile logistics, retail warehousing, and storage firms
  • Airport Industria: Prime location for fast-turn supply chain operations linked to airfreight
  • Brackenfell, Bellville South: Attractive for national storage and distribution players, with cost advantages
  • Atlantis SEZ: Now a focus area for renewable energy manufacturing and export-focused BPO logistics

Key Trends:
✅ Floor-to-ceiling heights of 10–13 metres are the new baseline
✅ Superlink-friendly yards are mandatory for regional logistics players
✅ Solar-readiness and ESG alignment drive investment criteria for REITs and institutional investors
✅ Short lead times: industrial tenants want space ready within 6–12 months, prompting speculative development

Investor Takeaway:
The Western Cape is fast becoming a national hub for advanced logistics and manufacturing. If you own industrial-zoned land or adaptable warehousing, now is the time to explore repositioning opportunities—BPO and e-commerce-driven demand is not slowing.

09 Jun 2025
Author Sotheby's Commercial Realty
Share
4 of 27