The latest industrial property market statistics (2026_Q1) confirm several interesting trends in Cape Town. Industrial Property Vacancy levels have significantly reduced in the last three years. Demand remains high for industrial space in Cape Town. Contributing factors include increased business confidence due to greater political stability, no load shedding in 2024 and 2025, a more robust Rand exchange rate, and long-term expectations of lower interest rates. The current war in the Middle East, which has driven up fuel prices in the short-term, is generally the “unpredictable factor” and could influence a number of outcomes.
Market rentals (rentals concluded at) have risen during the last 36 months due to lower supply and higher demand. Landlords are actively seeking to increase their rental income, as evidenced by the higher asking rents over the past 27 months. In reality, newer, more modern industrial buildings are increasingly sought after for rental, while older buildings are finding it harder to attract tenants.
Epping Industrial Property Index
What do these statistics show us about the current Industrial Property Market?
- The amount of vacant industrial space in Cape Town dropped even further in 2025. Availability remains tight into early 2026.
- Rentals have increased over the last 36 months due to a shortage of available space. Landlords are now starting to dig their heels in on rental levels.
- Tenants are increasingly finding it difficult to secure suitable premises to expand or contract.
- Landlords favour tenants who are prepared to sign longer leases, given the shortage of industrial space to rent in Cape Town.
- Tenants in Cape Town are having to “up their game”. Landlords are requesting a history of rental payments, favourable references from previous Landlords, business plans, and copies of up-to-date financial statements.
- Businesses are becoming aware of the efficiency of their premises. Factors such as height, stacking volume, the number of columns in a warehouse, natural lighting, and modern roofs are becoming key considerations in selecting premises.
- Businesses still favour the more modern industrial buildings, with most of these spaces now rented out, even at much higher rentals.
The industrial property sector is vital in South Africa
The industrial property market in SA holds immense value. Used across many business types, its uses range from versatile to efficient. At this point, it is difficult to say which industrial sectors are slowing the most.
The “top-rated” buildings have the highest specifications. These buildings tend to let first. While these “top-rated” properties may have a higher R/m², they usually have much higher ceilings. They thus offer tenants a lower rate per m³. Boasting full compliance with current fire regulations, lower electricity costs, advanced building materials, and improved business efficiencies, we provide our clients with access to prime industrial property. However, the overall amount of available rental space remains low. Companies must plan their moves well to ensure a suitable space is available on time.
The only index for industrial property in Cape Town
These statistics support what is happening in the industrial market.
This index is designed to assist property owners, tenants and other stakeholders in assessing the industrial real estate market, especially in Cape Town. Epping is home to many of the most significant industrial companies in the Western Cape. It is an excellent gauge of industrial property in the entire Western Cape. The statistics that form the Epping Industrial Property Index are compiled by the only company that works with landlords and tenants in Epping on a daily basis. Epping Property is the only company to have surveyed the existing industrial spaces throughout the Epping area. Having measured the total square metres available for rent, our statistics are the most accurate.
Historical Growth of Industrial Rentals in Epping Industria
Read about the long-term rental trends of Industrial Property in Cape Town
Sales of properties in Epping Industria
The above information is an excellent indicator of rental demand and supply. Hereunder are all the properties sold and transferred during 2021. (For interest purposes, we have recorded the transfers of 2014, 2015, 2016, 2017, 2018, 2019, 2021, 2022 and 2023). Please bear in mind that properties have different building sizes: Erf size ratios and various other characteristics – it is only meaningful to compare similar properties. Don’t hesitate to get in touch with Epping Property for more details on property values in Epping and the Central industrial areas of Cape Town.
