The latest industrial property market statistics (2026_Q3) confirm several interesting trends in Cape Town. Industrial Property Vacancy levels have significantly reduced in the last three years. Demand for industrial space in Cape Town remains high. Contributing factors include increased business confidence due to greater political stability, no load shedding since 2024, a more robust Rand, and long-term expectations of generally 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 several outcomes.
Market rentals (rentals concluded at) have risen during the last 39 months due to lower supply and higher demand. Landlords are actively seeking to increase rental income, as shown by higher asking rents over the past 30 months. In reality, newer industrial buildings are increasingly sought after, while older buildings are finding it harder to attract tenants.
However, we are seeing early signs that tenants are being pushed to the limit on affordability and are becoming more price-sensitive again. Also, various prime larger premises have become available for rent in Epping Industria, driving up the average asking rental.
Epping Industrial Property Index
What do these statistics show us about the current Industrial Property Market?
- Vacant industrial space in Cape Town fell further in 2025. Availability remains tight in 2026, but more vacant premises are coming to market.
- Rentals have increased over the last 36 months due to a shortage of available space. Landlords are now digging in on rental levels.
- Tenants are increasingly finding it difficult to secure suitable premises for expansion or contraction.
- Landlords favour tenants willing 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 modern industrial buildings, with most of these spaces now rented out, even at much higher rents.
The industrial property sector is vital in South Africa
The industrial property market in SA is highly valuable. Used across many business types, it offers versatility and efficiency. 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. As a result, they offer tenants a lower rate per m³. With full compliance with current fire regulations, lower electricity costs, advanced building materials, and improved business efficiencies, we give our clients 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 helps property owners, tenants, and other stakeholders assess the industrial real estate market, especially in Cape Town. Epping is home to many of the Western Cape’s most significant industrial companies. It is an excellent gauge of industrial property in the entire Western Cape. The statistics that comprise the Epping Industrial Property Index are compiled by the only company that works daily with landlords and tenants in Epping. Epping Property is the only company that has surveyed existing industrial spaces throughout the Epping area. Having measured the total square metres available for rent, we can provide the most accurate statistics.
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 transfers from 2014, 2015, 2016, 2017, 2018, 2019, 2021, 2022, and 2023). Please note that properties vary in size and other characteristics, so it is only meaningful to compare similar properties. Contact Epping Property for more details on property values in Epping and the Central Industrial Area of Cape Town.
