The Investment Case for South African Industrial Property in 2026

South African industrial property has quietly become one of the most compelling asset classes in the country's commercial property landscape. Yields on well-located industrial stock — particularly logistics hubs, last-mile warehousing facilities and light manufacturing parks — are consistently achieving 9% to 11% on cost, making them significantly more attractive than retail or office on a risk-adjusted basis.

The structural drivers are clear. E-commerce penetration, while still relatively nascent in South Africa compared to developed markets, is accelerating. Logistics operators require more distribution facilities, not fewer. Infrastructure investment around the Durban Port hinterland and the Gauteng East logistics corridor has created new demand clusters that were not on the radar five years ago.

For investors, the entry window is narrowing. Prices have firmed materially in Kempton Park, Boksburg and the Elandsfontein node over the past 18 months. Acquisitions below R10,000/sqm in these areas — which were achievable in 2023 — are now largely historical. The quality assets that remain are being acquired off-market.

Stone Capital's investment division actively sources and facilitates industrial acquisitions for private investors and family offices. If you're looking for off-market industrial exposure in Gauteng, KZN or the Western Cape, contact our team for a confidential discussion.