The overall office vacancy rate at the end of Q2 2024 was 14.2%, down 50 basis points on the previous quarter, and recording the eighth consecutive quarter of improvement. However, this improvement came at a cost to rental growth which has declined year-over-year since 2019.
During Q2 2024, the overall office asking rental rebounded back to positive territory (+0.8%). While this figure is still well below inflation, it may signal that demand is currently closer to supply than it has been since pre-Covid-19.
This trend was also aided by muted development activity which could assist in stabilizing the market at a new equilibrium.
The second quarter of 2024 saw improved vacancy rates for Prime, A-, and B-grade offices with lower-quality, C-grade office space recording a 30-basis point deterioration over Q1 2024.
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.
