Rode's Q2 2026 report: industrial rentals keep outpacing offices across South Africa

South Africa's industrial property market keeps pulling away from the pack. Rode's Q2 2026 report shows prime industrial rentals growing well ahead of Grade-A office rentals nationally — and in some regions, dramatically so.

The national picture

Nominal rentals for prime 500m² industrial space rose 7.2% year-on-year in Q2 2026, against 4.4% for Grade-A offices over the same period. Larger 1,000m² premises did even better, up 7.9%. Vacancies stayed tight throughout, with the national industrial average sitting around 4% — Cape Town (about 3.3%) and Central Witwatersrand (about 3.4%) both running below that.

Where the growth is concentrated

Regional rental growth varied sharply: Cape Town led at an exceptional 11.7%, followed by Central Witwatersrand at 8.4%, the East Rand at 6.4% and Durban at 4.6%. That East Rand figure lines up with what we see across our own Germiston, Jet Park and Boksburg listings — a large, established belt where rental growth is real but steadier than the tighter, land-constrained Cape Town market.

Why it matters

Industrial has now outperformed both office and retail for several consecutive quarters, driven by e-commerce logistics demand and a continued shortage of well-located, modern warehouse space. For tenants and investors, that combination of low vacancies and rising rentals is a clear signal the sector's momentum isn't slowing yet.

Source: Rode's Report on the SA Property Market, Q2 2026, as covered by WatchProp.

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