The demand for industrial property is likely to “slowly pick up” this year. Gary Vos, franchisee of Rawson Cape Metropole Blaauwberg Commercial, says this will probably occur after the third wave of Covid-19 recedes, and much of the working population has been vaccinated, which will contribute to economic recovery.
“We could possibly see positive increases in demand and the filling of at least 50% of the vacancy rates for the industrial/warehouse sector towards the first half of 2022.”
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Office occupancy rates, however, will take longer to get back to pre-Covid levels as people have become used to working from home now.
“At least 20% of people who used to work out of an office are now permanently working from home,” Vos says.
Many landlords who own large office spaces will choose to convert them into residential apartments as the demand for residential units is much higher.
“The retail side will see slow progress in demand as businesses slowly recover financially. Supply will still be at a steady pace and new developments are set to kick off once demand increases.”