Inospace has reported a 12% year-on-year increase in revenue, with double-digit growth in net operating income, for the six months ended 30^th June 2025 – driven by tenant demand, strong retention, and its ongoing expansion.

At the close of the period, its R3 billion portfolio recorded occupancy of 92% with many of its parks in key logistics corridors running at full capacity. The company signed 142 new leases in Q2 alone, over three-quarters of which were taken up by existing tenants either expanding or renewing.

“We’ve built our model around speed, flexibility and client success,” says Inospace CEO Rael Levitt. “The traditional landlord model doesn’t work for SMEs that need to move fast or downsize quickly. We’ve proven that doing more than just renting out space helps our clients grow—and when they grow, so do we.”

Inospace’s model blends warehousing, storage, and logistics services in a single ecosystem. It’s become increasingly attractive to SMEs, e-commerce sellers, and last-mile distributors seeking convenience and cost-efficiency without the red tape of traditional leasing, he says.

“South Africa’s small businesses are navigating an increasingly volatile environment. Operational costs are rising, and global trade disruptions are beginning to impact our client base. We’re well-positioned, but we’re watching these headwinds closely.”

Despite these challenges, Inospace has made key operational gains. One major move was the outsourcing of facilities management across its portfolio, allowing the business to streamline operations, reduce costs, and reallocate internal resources toward core client service. Results suggest that this shift has improved satisfaction while boosting margins.

Financial operations were also strengthened with improved credit controls having enhanced collections while a new ‘One Bill’ system, rolling out in Q3, aims to tackle a long-standing pain point in multi-let industrial real estate: billing complexity. The new system consolidates all monthly charges into a single, transparent invoice. Levitt says this will simplify budgeting and cash flow visibility for clients and the company alike.

Technology remains central to Inospace’s operating model. A new client onboarding platform now manages move-ins and move-outs. ‘Lisa’, the company’s proprietary technology platform, was retooled to focus on deal flow and client retention. In parallel, a new asset management platform is being rolled out across the group’s co-warehousing and storage portfolio, offering better tracking, visibility, and operational control.

“These platforms aren’t tech for tech’s sake. They reduce admin and allow us to deliver better service, faster.”

Inospace’s growth strategy is also being underpinned by capital recycling. Over R320 million in mature assets were disposed of in the past six months including the sale of Jet Works in Jet Park, parts of Wynberg Workshops in Sandton, and industrial assets in Paarden Eiland and Parow. The company also sold out five sectional-title developments. The Cape Town disposals fetched nearly R10 000 per square metre on average, giving the group a substantial cash pile to fund acquisitions in high-demand areas.

Four new parks are being launched in Cape Town including sites in Woodstock, Epping Industria, Cape Town CBD, and Capricorn Works in Muizenberg. Inospace has also confirmed three more acquisitions are under contract, with details pending.

Inospace’s leadership team has evolved alongside its growth. Recent appointments include Llewellyn Olivier as CFO and David Bernstein as Group MD. To support its growing fulfilment and courier aggregation offering, the company has brought on logistics veteran Devan Cairns, currently heading fulfilment at JSE-listed HomeChoice, to lead the rollout nationally.

Meanwhile, product innovation continues. A co-warehousing model launched at Olympia Works in Sandton now offers micro-warehouse suites that blend the flexibility of coworking with logistics infrastructure. Designed for e-commerce sellers, light distributors and online retailers, the offering targets businesses that were once priced out of traditional warehouse space.

Yet even with strong fundamentals, Levitt remains clear-eyed about the macroeconomic picture. Local SMEs face multiple pressures, from surging energy costs and fuel prices to the potential loss of US trade privileges. Some are already pivoting toward African markets under the African Continental Free Trade Area (AfCFTA), while others are exploring BRICS+ partnerships and growing trade with China.

There is some good news with inflation forecasts now suggesting price stability, with rates expected to stay below 4% through the year. Interest rate relief may also be on the horizon with SARB’s next decision due at the end of July.

“We’re cautiously optimistic,” says Levitt. “SME funding conditions are likely to improve with support from government, banks, and fintech platforms. But access remains patchy, and many smaller businesses still struggle to secure meaningful financial support.”

He added that the coming months will be a vital test for South Africa’s entrepreneurial economy.

“This is not the time to ease off. It’s time to double down on service, on product relevance, and on lean, focused execution. The next six months will be telling, but we’re ready.”