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Johannesburg Industrial Market Overview Q3 2017

​We continue to keep a close eye on activity in the consumer market as one of the major drivers of activity in the Johannesburg logistics and warehousing property market. The trade sector managed a marginal 0.6% GDP growth in Q2 2017. 
Historically, southern Johannesburg has struggled to fill older buildings even at low rental rates. However, the South is now showing one of the lowest vacancies.
Developers remain confident that speculative developments in the eastern and northern nodes will be absorbed and the low vacancy rate across the city seems to justify additional build. However, with weak GDP growth and weak confidence in the manufacturing sector, as well as in the consumer trade sector, some caution is warranted.

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