For several years, the Johannesburg office market has been defined by uncertainty.
Very little new office development has taken place. At the same time, a significant amount of existing office stock has been repurposed for residential, student accommodation and mixed-use developments.
This has gradually changed the supply equation.
And at Renprop Commercial, we believe the scales are beginning to tip.
The strongest demand is increasingly concentrated in well-located, high-quality office buildings in established nodes such as Rosebank, Sandton and other amenity-rich decentralised locations.
The supply side is changing
Johannesburg's office supply is changing
At Renprop Commercial, we believe this creates an important investment window for discerning buyers. The office surplus built up over several years is being absorbed in two ways:
1. Occupancy is improving.
Businesses are taking space again, particularly in quality buildings that offer accessibility, security, amenities, reliable infrastructure and a compelling workplace environment.
2. Office stock is disappearing.
Buildings that are no longer economically viable as offices are being converted to residential, student accommodation and other uses.
At the same time, the development pipeline remains extremely limited. This creates an interesting potential scenario:
- Demand is recovering while future supply remains constrained.
- The return to the office matters.
- The conversation around remote and hybrid working has also evolved.
- And any businesses have realised that the office is about far more than providing employees with a desk:
- Collaboration.
- Innovation.
- Company culture.
- Training and mentorship.
- Leadership visibility.
- Team cohesion.
- Productivity.
Renee Feeney, Head of Renprop Commercial, adds: “Tenants want offices that are accessible, secure and operationally reliable. 29 On Scott brings those requirements together in a flexible sectional title environment, while giving selected investors a clearly structured 9% net return.”
What the changing market means for investors
These are increasingly important considerations in corporate real estate decisions. As businesses bring employees back into the workplace, the quality and location of office space becomes increasingly important.
The result is a growing flight to quality, with tenants favouring well-positioned buildings in established nodes rather than simply looking for the cheapest available space.
So, what does this mean for investors?
We believe Johannesburg commercial property is entering an important window of opportunity. The market is not yet at the point where every office building will benefit. There remains significant oversupply in certain locations and older, less competitive buildings.
This is precisely why careful asset selection matters.
The opportunity lies in identifying well-located commercial properties with strong fundamentals, quality buildings, good tenant appeal and long-term repositioning potential — before the wider market fully prices in the recovery.
As vacancy levels continue to fall, supply becomes more constrained and rental growth strengthens, the potential for capital appreciation becomes increasingly compelling.
29 On Scott: Invest ahead of the curve
A clear investment case
At Renprop, we have positioned our own sectional title office development, 29 on Scott, to provide investors with an opportunity to participate in this emerging market cycle.
Located in a sought-after commercial node, 29 on Scott offers excellent accessibility to major highways, a central Johannesburg location and close proximity to Melrose Arch — placing it firmly within an established and highly desirable business environment.
For investors, this presents an opportunity to acquire commercial property during what we believe is a limited window of opportunity, before increasing demand, strengthening rentals and constrained new supply potentially translate into further capital growth and appreciation.
Chris Renecle, Managing Director of Renprop, comments: “The Johannesburg office market is becoming under supplied and vacancy rates have reduced considerably. Because of this, we expect strong capital growth in the next 18-14-months as demand outweighs supply. We expect this to be very similar to what happened to the office market in 2008. That is the investment case we have created at 29 On Scott.”
A limited opportunity
Only four offices form part of this campaign. Investors can compare size, price, parking, lease term and indicative net income before selecting an opportunity. Explore the 29 On Scott investment opportunities or contact Renprop Commercial for the full investment pack and a private viewing.
The next phase of Johannesburg’s office market could be closer than many investors realise...
The opportunity is now. Act before the market catches up.
