Commercial Property Market Trends To Watch As We Head Into 2024
Category Advice
The South African commercial property market has seen its fair share of ups and downs over the last few years, often facing unprecedented challenges. In light of a global health crisis and the ever-shifting ways in which businesses are choosing to operate, the commercial property landscape has proven to be a very unpredictable space.
The commercial market is greatly influenced by various factors, including:
- Economic conditions
- Government policies
- Global events
While the future is anything but clear, we are seeing certain market trends standing out more than ever. In this blog, we unpack what we believe are potential commercial property trends that property investors should keep an eye on in the coming year.
Commercial Property Trends To Watch In 2024
Flexible Workspaces
We are seeing more and more businesses moving toward a more flexible working environment, and this trend is increasing year-on-year. The Covid crisis proved that when it came down to it, it was possible to set many employees up to work effectively at home. Working professionals are now seeking out companies who can offer them a more flexible work-life balance. Now, the demand for hybrid office spaces that offer both remote and in-person work options may continue to shape the commercial real estate market.
Increased Technology Integration
The integration of technology into commercial real estate operations and management was already on the rise before the pandemic. This includes the use of data analytics, IoT devices, and smart building technology to optimise energy efficiency, security, and tenant experiences. We have seen an increase in demand for commercial real estate that includes advanced technological features, and expect this trend to continue and even increase in 2024.
Logistics and Warehousing
We are seeing increased interest in and demand for properties with adequate warehousing and storage capacities. The growth of e-commerce has been a driving force behind this increased demand, to accommodate the growing world of online shopping and cross-continental imports and exports. The shift in consumer behaviour toward online shopping is expected to continue, which will likely increase the demand for industrial real estate in the new year.
Urban vs. Suburban Shift
We are noticing a significant shift in demand for commercial property in both the urban and suburban spaces. The COVID-19 pandemic forced some businesses and individuals to relook at their location preferences as numerous restrictions were placed on commuting and venue capacities. While urban areas have traditionally been popular for commercial real estate, some suburban markets have experienced increased interest due to factors like lower population density, less traffic, easier staff access, and more space.
Adaptive Reuse
As certain types of businesses face challenges or closures, we have seen an increased interest in the adaptation or reuse of commercial properties. This trend involves repurposing old or underutilised buildings for new purposes, such as converting retail space into residential or office spaces, or old mills or cellars into restaurants, event venues, or food delis. We foresee exciting opportunities in this space next year, as Cape Town holds a variety of options for commercial use in many suburbs.
Looking for commercial space in 2024? Call us!
Our exceptional commercial team has years of commercial property experience and a passion for setting growing businesses up with their perfect property match. Get in touch with us today and let's set up some viewings.
Author: SAProperty.com
