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Industrial Rentals Cape Town – see how they’ve grown!

12th March 2018 by Tony Bales

Industrial Rentals Cape Town – see how they’ve grown during the last 40 years! During lease negotiations, landlords and tenants often discuss the average rental growth over time. Short growth periods, stagnant growth periods, or sudden downturns can sometimes skew one’s idea of long-term trends.

Epping Property has analysed the historical data for industrial rentals in Epping Industria in Cape Town. Epping Industria rentals are considered a good sample for average long-term rentals in Cape Town.

Industrial Rentals Cape Town

Growth in Industrial Rentals Cape Town:

  • 9.23% per annum compounded. Long-term growth in industrial rentals in Cape Town for the last 38 years.
  • 12.76% per annum compounded. The growth of industrial rentals during the “higher inflation” era of 1980 to 1999. (During this period, average contractual lease escalations were 12% annually).
  • 5.81% per annum compounded. The growth of industrial rentals during the “lower inflation” era of 1999 to 2018.
  • 8.04% per annum compounded. The growth of industrial rentals during the last 12 years – 2006 to 2018. (During this period, average contractual lease escalations were 7% to 8% per annum).

Looking at the graph, periods of low growth and/ or periods of high growth can significantly influence shorter-term trends. The long-term growth tendencies are nonetheless apparent.

Knowing precisely what market rentals are is essential to all rental negotiations. While the above rentals indicate the general trend, one does have to be mindful that each set of industrial premises has different attributes. Therefore each and every premises will have various market rentals at any one time. For this reason, we recommend one keeps in close contact with a specialised industrial property broker who can accurately assess a premises’ correct, current market rental.

Industrial rentals are also the main determinant in assessing the market value of an industrial property. Therefore, accurate rentals are also required when valuing industrial property.

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Articles & Documents

  • Epping Property Newsletter – 2025 edition
  • The Brokers of Epping Property
  • Industrial Rental Growth in the Western Cape outpaces Inflation
  • Trends in Industrial Real Estate in South Africa: A Spotlight on Cape Town in 2025
  • 17 Industrial Properties Sold in Cape Town by Epping Property
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Testimonials

Tafelberg Furnishers

Following a fire at our Epping factory, we decided to reconfigure the business differently and sell the Epping property. Epping Property secured us an excellent transaction to a solid purchaser. We would highly recommend Epping Property as experienced, trustworthy industrial property dealmakers.

Management, Tafelberg Furnishers

Epping Property
2020-01-16T16:01:19+02:00

Management, Tafelberg Furnishers

Following a fire at our Epping factory, we decided to reconfigure the business differently and sell the Epping property. Epping Property secured us an excellent transaction to a solid purchaser. We would highly recommend Epping Property as experienced, trustworthy industrial property dealmakers.
https://www.eppingproperty.co.za/testimonials/management-tafelberg-furnishers/

AVI Ltd

During November we were a little stuck in finding an appropriate warehouse to relocate to. Epping Property did an extensive search in all the central industrial areas. They eventually found our suitable premises and negotiated a deal that both ourselves and the landlord were very happy with.

Management, AVI Ltd

Epping Property
2017-05-08T11:48:22+02:00

Management, AVI Ltd

During November we were a little stuck in finding an appropriate warehouse to relocate to. Epping Property did an extensive search in all the central industrial areas. They eventually found our suitable premises and negotiated a deal that both ourselves and the landlord were very happy with.
https://www.eppingproperty.co.za/testimonials/management-avi-ltd/

Growthpoint Properties

Epping Property reliably assists us in keeping our portfolio in the Central Industrial areas of Cape Town tenanted with good, solid businesses. We can highly recommend anyone looking to rent or to buy property in Epping to deal with the experienced Epping Property team.

Management, Growthpoint Properties

Epping Property
2017-05-08T11:48:51+02:00

Management, Growthpoint Properties

Epping Property reliably assists us in keeping our portfolio in the Central Industrial areas of Cape Town tenanted with good, solid businesses. We can highly recommend anyone looking to rent or to buy property in Epping to deal with the experienced Epping Property team.
https://www.eppingproperty.co.za/testimonials/director-edge-properties/

Truworths Limited

We are exceptionally happy with the purchase of both 22 and 26 Bertie Avenue in Epping. It makes 100% sense for our company to have secured this location. We will now be expanding the warehousing and distribution side of our business onto the properties. Thank you.

Management, Truworths Limited

Epping Property
2017-05-08T11:49:17+02:00

Management, Truworths Limited

We are exceptionally happy with the purchase of both 22 and 26 Bertie Avenue in Epping. It makes 100% sense for our company to have secured this location. We will now be expanding the warehousing and distribution side of our business onto the properties. Thank you.
https://www.eppingproperty.co.za/testimonials/management-truworths-limited/
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