The overall office vacancy rate at quarter end was 15.2% – down 30 basis points from the previous quarter but still well above where it was pre-Covid-19, according to SAPOA’s Office Vacancy Survey Q4 2023.
While the steadily improving occupancy rate suggest that demand might be creeping past supply, a negative real asking rental growth intimates that improving vacancy rates are coming at a cost to topline income.
Slowing development activity also helped restore the market to its new equilibrium where vacancy rates might remain close to current levels until there is meaningful economic and employment growth.
During previous cycles, the take-up of space only gained momentum when real (inflation adjusted) GDP growth exceeded 3%. Current forecasts for the medium term fall short of this and the take-up of office space is expected to continue along its current shallower path.
For more detailed information on SA’s office vacancies, download a free copy of the latest report here (free to SAPOA members only).
How to access SAPOA’s reports:
- Visit www.sapoa.org.za.
- Login/register on SAPOA Members
- Click on ‘Reports’
- Click on ‘Free Reports’
- Click on ‘Office Vacancy Reports’
Not a SAPOA member? Sign up here
