2025 wrapped up on a strong note. According to the FNB Commercial Property Finance’s Q3 2025 Property Broker Survey, those in the field saw demand outstrip supply across industrial, office, and retail spaces — this was for the first time since the survey began in 2019.
Heading into 2026, industrial property and commercial property are still seeing strong activity, and a few key trends are already shaping how people are buying, leasing, and investing in space this year. If you’re watching the market closely, these are the moves to keep an eye on.
Borrowing costs could fall: The South African Reserve Bank is expected to continue its cautious rate-cutting cycle in 2026, with experts pencilling in two 25-basis-point cuts. Lower rates will make financing cheaper, giving landlords a chance to refinance and offer more attractive rental terms. This could also boost confidence for tenants and investors in the industrial and commercial property sectors.
Commercial sector on the rise: After a strong showing in 2025, commercial vacancies will continue to be sought after and see rental pricing increase. Interest should continue to gain momentum from local and global investors. The latter is already moving in after the country moved off the Financial Action Task Force (FATF) "grey list" and received an improved 'BB' rating from S&P Global Ratings. As banks are showing an appetite to fund commercial and industrial projects, there’ll be more opportunities for investors to jump in.
Back to the office: South Africa’s office market will steadily rebound in 2026. Hybrid and return-to-office policies are boosting demand for quality, well-located spaces, particularly in decentralised nodes like Cape Town. Strategic conversions are easing oversupply, while tenants continue to choose options with access to popular amenities, security, and operational resilience.
Sustainability is a seller: Tenants and investors are increasingly favouring energy-efficient, environmentally friendly office and industrial spaces with smart technology, solar, and water-saving systems. Flexible, modern buildings that reduce costs and environmental impact are standing out in an eco-conscious market.
Mixed-use makes magic: Tenants are flocking to live-work-play spaces, where offices and sometimes industrial properties sit alongside shops, restaurants, and homes. These mixed-use environments offer convenience, accessibility, and vibrant communities, outperforming traditional standalone offices in occupancy and rental stability. Urban hubs like Sandton, Kempton Park, and Midrand are leading the way in Gauteng.
The new face of shopping: Neighbourhood retail is growing fast in South Africa, as shoppers increasingly value convenience, experiences, and community over large, impersonal malls. Upcoming centres like iTonka Square in KwaThema (Springs) showcase this shift, blending retail, eateries, and lifestyle offerings in a compact, accessible format. These smaller, well-curated hubs are proving resilient, attracting steady footfall and strong rentals even as traditional super-regional malls face ongoing challenges.
Industrial remains a star asset: The industrial sector shows no signs of slowing down, driven by strong demand for warehousing, logistics, and last-mile distribution. Growth is concentrated along transport corridors near ports and highways, with tenants opting for smaller, flexible units and long-term leases for income stability. E-commerce is fueling this boom; according to Rahul Jain, CEO of Peach Payments, “online retail could reach 10% of total retail sales in 2026”, further boosting the need for distribution hubs.
Cranes return to the skyline: Major developers stepped on the accelerator in 2025, and this momentum is set to continue as confidence returns to the commercial property market. Improved funding conditions, South Africa’s enhanced business reputation, and easing interest rates are unlocking new projects and expansions. Developments like The Bankenveld District City, Southern Farms Mega City Project, and Mooikloof Smart City signal a renewed appetite for scale, while global entrants, including Walmart’s branded-store rollout in Johannesburg, point to growing long-term commitment to the local market.
Tech will drive the deal: In 2026, commercial real estate will increasingly be discovered through savvy email marketing, videos, virtual walkthroughs, posts, and ads on social media platforms and search engines — sometimes long before listings hit traditional portals. Behind the scenes, AI is speeding up property valuations and sharpening insights, helping buyers, landlords, and property practitioners move faster, market smarter, and close deals with certainty.
Now’s the time to act
With confidence returning and market conditions improving, 2026 presents a clear opportunity to make smart, well-timed property decisions. That’s where Newpoint Property Group comes in. We support clients across the sales, rentals, and management of industrial and commercial property. With us, you get a hands-on approach to every mandate while receiving professional, tailored service at every step.
