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.
