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Johannesburg Industrial Market Report Q4 2016

​If consumer sentiment is anything to go by, trade activity is likely to remain subdued in 2017. Ordinarily, this would point to low demand for logistics and warehousing space. In a positive contrast, purchasing managers in the manufacturing sector have got off to an optimistic start, which suggests that activity is likely to be better than expected.

In preparation for a year of better economic growth than in 2015 and 2016, the Johannesburg market is experiencing an increase in industrial property deals, particularly in the popular northern and eastern nodes, but also with notable interest in the West Rand. The market saw healthy rental growth and vacancies were at comfortable levels in the last quarter of 2016. Despite a high number of developments, no over-supply is anticipated over the short term.

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