The SA property market has seen mixed results in recent years, but one type of commercial property Cape Town has been producing excellent returns. Could light industrial property be the shining light in an otherwise dim market?
Let’s take a closer look at this exciting trend and what it could mean for property investors.
Light industrial: quietly producing double-digit returns
Despite a slowing economy and jittery investors who are worried about South Africa’s government debt situation, light industrial properties have been delivering boom-time returns.
With returns of 11% over the past year, small warehouses and assembly locations are proving to be excellent commercial property Cape Town investments.
For property investors who find themselves frustrated by slow growth in other areas of the market, light industrial properties may be the ideal investment strategy.
The small living and working trend reaches the factory floor
The global trend for compact, easy-to-maintain properties has been making its presence felt in SA lately, with micro-apartments and shared office spaces becoming the norm. Now the same trend is making smaller industrial commercial spaces extremely popular in Cape Town.
- The low financing and maintenance costs of light industrial properties, along with their affordability to tenants, are just some of the benefits of going smaller.
- While large factory spaces battle to attract buyers and tenants, their smaller counterparts are selling well and reporting good occupancy rates.
- Light industrial properties are ideal for warehousing, packing, and light assembly. This makes them ideal for clients in the import/export, retail and eCommerce sectors.
Industrial parks offer the best of all worlds
Many light industrial properties in Cape Town are located in industrial parks, which offer convenience, security and the perfect setup for a hybrid wholesale-retail business.
Importers and small manufacturers frequently opt to rent or buy in industrial parks, with many of them using part of the floor space as a showroom for their products.
Online retailers will also be keen to secure light industrial properties as warehouses and order fulfilment centres to ensure that their deliveries go out on time to customers across South Africa.
We’ll help you secure the ideal commercial property
Light commercial properties present an excellent opportunity for property investors and tenants alike. If you’re in the market to buy, sell or let a compact industrial space in the greater Cape Town area, contact us today.