Five Commercial Property Trends reshaping South Africa in 2026

• Investor confidence is returning as vacancies fall and rental growth gains momentum across key commercial nodes.
• Industrial real estate remains the country’s top-performing asset class heading into 2026.
• Technology, REIT performance and renewed development activity are redefining the commercial market.

SA’s commercial sector is rebuilding momentum

‍South Africa’s commercial property landscape ended 2025 on a firmer footing than at any point in recent years. Vacancies are tightening, rentals are rising, and investor interest, local and global, is returning. Industrial continues to outpace all other commercial segments, retail nodes are stabilising, and office markets are clawing back lost ground.

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“The commercial real estate sector is now better positioned than at any time in recent years,” says John Jack, CEO of Galetti Corporate Real Estate. “2026 presents an opportunity to capitalise on renewed investor confidence and asset availability.”

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The Q3 2025 Rode Report confirms consistent improvements across core markets, with industrial vacancies below 5%, declining retail vacancies and rising REIT returns. Jack also notes that auctions continue their rise as a preferred sales channel, while REITs remain a magnet for value-driven capital.

Five trends that will shape Commercial Property in 2026

1. REITs regain their edge

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“South Africa’s REIT sector is entering 2026 on a strong footing, supported by stabilising valuations, healthier balance sheets and improving operational performance,” Jack says.

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Most listed REITs delivered double-digit total returns in 2025, and the industrial and retail portfolios of several majors show notably lower vacancies.

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“With this momentum, the SA REIT Conference 2026 will spotlight fresh opportunities across logistics, convenience retail and alternative asset classes,” he adds.

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2. Office market recovery gains traction

The slow but steady return to the office is reshaping demand.
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“Cape Town continues to outperform the rest of the country, while Johannesburg faces the most pressure,” says Jack.

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However, strategic conversions are easing oversupply, while well-located A-grade and decentralised offices are seeing renewed interest, particularly from professional services and hybrid teams seeking quality space.

3. Industrial outperforms again

Industrial remains the star performer.
Rode reports national industrial vacancies at just 3.8%, with 8.4% year-on-year rental growth on 500m² space.

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“Demand for logistics, warehousing and last-mile distribution remains exceptionally strong,” Jack notes. “Proximity to key corridors, especially in Cape Town, continues to drive performance as demand far exceeds supply.”

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4. Major developers are back in expansion mode

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“Major developers are accelerating investment as confidence strengthens across the commercial property market,” Jack explains.

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Growthpoint’s R20-billion V&A Waterfront expansion signals strong long-term commitment, supported by upgrades across retail and mixed-use nodes nationally.

At the same time, Vukile and Exemplar continue to deliver strong results in township and rural markets, driven by resilient consumer demand and stable trading densities.

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Jack adds: “Improved business confidence and South Africa’s grey-list exit are already attracting new entrants, including Walmart’s branded-store rollout in Johannesburg.”

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5. Technology is reshaping how deals are done

Commercial real estate is entering a new digital era. “Social platforms are driving demand through short video, virtual walk-throughs and the rise of property personalities,” Jack says.
AI-driven valuations, instant buyer matching and personalised marketing are already accelerating deal velocity.

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“As decision-makers become increasingly digital-first, these tools will redefine how commercial assets are marketed and transacted,” he adds.

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Stronger fundamentals into 2026

‍The commercial market enters 2026 with stronger fundamentals, deeper liquidity and a more confident investor base.

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Jack sums it up: “Strengthening fundamentals, renewed investor activity and rapid technological adoption are creating a market that better aligns with global shifts. For stakeholders across the value chain, the year ahead represents a pivotal opportunity to move early and unlock long-term value.”

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South Africa’s commercial sector is no longer in recovery mode, it’s positioning for growth.

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