Epping Property

Industrial Property Specialists

  • Home
  • Company
    • About Us
    • Success Stories
    • History of Epping
    • Terms of Use
    • POPIA and Privacy Policy
    • PAIA
  • Services
    • Industrial Property Rentals
    • Selling (Buying) of Industrial Property
    • Market Rental Analysis
    • Lease Contracts
    • Landlord and Tenant Representation
    • Industrial Property Valuation
    • Property Asset Management
    • Industrial Property Development Services
    • Property Development Marketing and Sales
    • Recycling of Outdated Industrial Buildings
  • Epping Ind. Index
  • Articles & Docs
  • Contact Us
    • Emergency Contact Details – Epping Industria, Cape Town

Why Industrial Property remains a good source of cash flow

8th November 2024 by Tony Bales

Why Industrial Property remains a good source of cash flow. Industrial property is a type of commercial property that includes warehouses, factories, distribution centres, and other manufacturing, storage, or logistics facilities. Industrial property is often considered a stable and resilient asset class. It can generate steady cash flow for investors, especially during economic uncertainty or disruption.

Why Industrial Property remains a good source of cash flow
Why Industrial Property remains a good source of cash flow

Here, we explore why industrial property remains a good source of cash flow in South Africa in 2025 and how you can use this opportunity to diversify your portfolio and increase your income.

1. High demand and low supply

One of the main drivers of industrial property performance is the balance between demand and supply. South Africa has a high demand for industrial space. Driven by the growth of e-commerce, logistics, manufacturing, and other sectors that require efficient and flexible facilities. However, the supply of industrial property is limited due to the lack of suitable land, high construction costs, and regulatory barriers. This creates a favourable market condition for industrial property owners, who can charge higher rents and enjoy lower vacancy rates.

Why Industrial Property remains a good source of cash flow

2. Long-term leases and strong tenants in Industrial Property

Another factor contributing to the cash flow stability of industrial property is the nature of the leases and tenants. Industrial property leases typically range from 3 to 10 years or more. This means that industrial property owners can lock in their rental income for extended periods and avoid the risks of tenant turnover and rent renegotiation. Moreover, industrial property tenants tend to be more creditworthy and reliable than others. Tenants invest heavily in their facilities and equipment and are less likely to default or relocate.

3. Low maintenance and operating costs assisting Cash Flow

Industrial property also has the advantage of lower maintenance and operating costs than other commercial property types. Buildings do not require much aesthetic or functional upkeep, as they are designed for practical purposes rather than customer appeal. Industrial property also has lower utility and service costs. They do not need to provide amenities such as air conditioning, lighting, or security that are common in office or retail properties. This means that industrial property owners can keep more of their rental income as profit. Resulting in more cash flow available for reinvestment or distribution.

Why Industrial Property remains a good source of cash flow

4. Potential for capital appreciation

In addition to generating steady cash flow, industrial property also has the potential to appreciate over time. As the demand for industrial space continues to outstrip the supply, the prices of industrial properties are likely to increase accordingly. Industrial property owners can also add value to their properties by making improvements or expansions that enhance their functionality or attractiveness to tenants. Furthermore, industrial property can benefit from developing (or changing) infrastructure or amenities in the surrounding area that improve its accessibility or desirability.

Conclusion

Industrial property has been a good source of cash flow in South Africa in 2024. This trend will continue into 2025 and 2026. It offers high demand and low supply, longer-term leases and strong tenants, low maintenance and operating costs, and potential for capital appreciation. One should consider investing in industrial property to diversify one’s portfolio and increase one’s income. Depending on one’s budget and risk appetite, one can buy an existing industrial property or develop a new one. One can also partner with a reputable industrial property developer, manager or broker who can help you find the best opportunities and manage your properties effectively.

Mob: +27 76 111 0000

Tel: +27 21 531 0026

E-mail: info@eppingproperty.co.za


  Thank you for Signing Up

SUBSCRIBE TO OUR NEWSLETTER

  Please correct the marked field(s) below.
First Name  *
1,true,1,First Name,2
Last Name *
1,true,1,Last Name,2
Email  *
1,true,6,Contact Email,2
Phone Number 
1,false,1,Phone,2
*
* Indicates required fields
Note: It is our responsibility to protect your privacy and we guarantee that your data will be completely confidential.

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
SAPOA

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/
0
Epping Property
  • Home
  • Properties for Sale
  • Properties for Rent
  • Search for Properties
  • Services
  • Company
  • Articles & Docs
  • Contact Us

© 2023 Epping Property. All Rights Reserved.