While the industrial sector has been the star performer in the local property market, with superior returns, it has also faced challenges.

 

A shortage of stock has resulted in an exponential escalation in rentals in KwaZulu Natal, the Eastern and Western Cape, and Gauteng. Infrastructure constraints, particularly electricity supply and road networks, are prohibitive factors in the establishment of new industrial areas.

 

Consequently, the investment market has been buoyant, with yields becoming more competitive, resulting in fewer acquisitions.