The Great Decentralisation: Why Global Commercial Tenants Are Moving to Cape Town’s Suburbs

The pandemic unlocked a permanent trend in the Western Cape’s commercial real estate market: decentralisation. Big industry, BPO firms, storage operators, and even REIT-backed portfolios are now seeking space outside the traditional CBD.

Why? The reasons are strategic:

• Reduced operating costs
• Easier commutes for key staff
• Improved quality of life
• Better parking ratios and infrastructure

Emerging Commercial Hotspots:

• Paarl & Stellenbosch: Professional services, private equity, and winetech R&D
• Somerset West (Paardevlei): Life sciences, BPO back offices, and regional HQs
• George & Knysna: Logistics and storage operators looking to decentralise coastal distribution
• Durbanville & Bellville: Core markets for BPO call centres and insurance services
• Tokai & Westlake: Attracting boutique advisory firms and creative agencies

Investor Takeaway:
Suburban and secondary office space offers compelling value to BPOs and big commercial operators. Savvy investors are now building REIT-friendly office portfolios beyond the CBD.