The overall office vacancy rate at the end of Q1 2024 was 14.7% – down 50 basis points from Q4 2023 and the seventh consecutive quarter of improvement, according to SAPOA’s Office Vacancy Survey for Q1 2024.

However, the improved vacancy rate came at a cost to rental growth. As at Q1 2024, rentals declined by 6.2% year-on-year after accounting for inflation. This was aided by muted development activity with the overall office vacancy rate to possibly remain in the low double digits until there is meaningful economic and employment growth.

Q1 2024 saw improved vacancy rates for A, B, and C-grade offices. Only prime office space saw a marginal 10 basis point deterioration. The prime office vacancy rate ended Q3 2023 at 8.8% – down significantly from 14.5% at the start of 2022. The declining gap between prime and A-grade rentals should continue to support tenants’ flight to quality as many occupiers continue to reduce floor area.

The City of Johannesburg’s office vacancy rate at 17.3% was the highest at Q1 2024 while the City of Cape Town’s overall office vacancy rate improved to its lowest level since 2009. At the same time, the City of Tshwane saw its office vacancy rate increase to 13.2% – its highest level in thirty years.

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’

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