Vacancies vs Reality: What Landlords Aren’t Saying
This is one of the most common statements we hear from tenants and buyers entering the Johannesburg industrial property market. On the surface, it seems logical. Listings are visible, boards are everywhere, and options appear plentiful across multiple nodes.
However, the reality on the ground tells a very different story.
The Illusion of Vacancy
At first glance, the Johannesburg industrial market appears well supplied. From Jet Park and Pomona to Wadeville, Selby, and Midrand, there is no shortage of properties being advertised.
Yet there is a growing disconnect between what is marketed as available space and what is actually viable for tenants and investors. This gap is creating a false perception of supply and, in turn, misleading expectations around pricing and negotiation.
A significant portion of so called vacant space falls into categories that limit its real market appeal.
Firstly, there are units that remain overpriced. Many landlords are still anchored to rental levels achieved in stronger market cycles, resulting in properties that sit vacant not due to lack of demand, but due to unrealistic expectations.
Secondly, a large portion of stock is functionally obsolete. These are properties that, while technically available, fail to meet modern operational requirements. Common shortcomings include inadequate yard space, insufficient power supply, low eaves height, and poor truck access. For logistics operators and industrial users, these are not minor inconveniences. They are deal breakers.
Finally, there is what can be described as politically available stock. These are properties that are listed on the market but where landlords are not genuinely motivated to conclude a deal. In many cases, owners are holding out for specific tenant profiles, testing pricing thresholds, or simply not under pressure to transact. As a result, these properties inflate perceived vacancy levels without representing real opportunity.
Where the Real Demand Lies
When these factors are filtered out, the true picture becomes clearer. Quality industrial space remains in short supply.
Properties that meet current tenant requirements, such as sufficient yard for superlink access, reliable three phase power, efficient layouts, and proximity to key transport routes like the R21, N3, N12, and N1, are in high demand. These units tend to move quickly and, in many cases, are secured before they are widely marketed.
This is particularly evident in logistics driven nodes around OR Tambo International Airport, as well as major distribution corridors linking Johannesburg to Pretoria and Durban.
The Pricing Disconnect
Returning to that initial assumption, there is so much available, landlords must be negotiable, this is where many deals begin to go wrong.
The presence of inferior or overpriced stock creates an artificial sense of oversupply. Meanwhile, well located and properly specified properties continue to achieve strong rentals and competitive lease terms.
In reality, good space does not sit long. Well priced assets attract multiple interested parties. Negotiation power depends on the quality of the property, not just availability.
For tenants and buyers, this means that waiting for better deals based purely on volume of listings can result in missed opportunities.
Insight from the Market
According to Kyle Enslin, Managing Director of Kingstons Commercial,“Tenants often walk into the market thinking they have the upper hand because of what they see online. But once you filter out what is overpriced, unusable, or not truly available, the reality is that good space is extremely competitive. The best deals are done quickly and often before they are widely exposed.”
A Strategic Approach for Tenants and Landlords
For tenants, the key to navigating this environment lies in understanding that not all vacancies are equal. Engaging with brokers who have access to off market opportunities and a clear view of real time demand can significantly improve outcomes.
For landlords, the message is equally clear. The market is rewarding properties that are practical, accessible, and competitively priced. Addressing operational shortcomings and setting realistic rental expectations from the outset can reduce vacancy periods and improve tenant quality.
The Kingstons Perspective
At Kingstons Commercial, our experience across Johannesburg consistently shows that the most effective deals are often concluded before properties reach full public exposure.
Understanding the difference between perceived vacancy and actual opportunity is critical. It is this insight that enables tenants and buyers to secure the right space efficiently, and landlords to position their properties for optimal performance.
Conclusion
While vacancy levels may appear elevated on the surface, the reality is far more nuanced. The Johannesburg industrial property market is not oversupplied. It is selectively constrained.
Those who understand where true opportunity lies will be best positioned to act decisively and achieve superior outcomes in an increasingly competitive environment.
For tailored advice on leasing, sales, or investment opportunities across Johannesburg, contact Kingstons Commercial.
