The Rise of Light Industrial Parks: What Tenants Are Looking For in 2025

Light industrial property has taken centre stage in South Africa's logistics and warehousing sectors. In Cape Town especially, demand for secure, flexible, and well-located light industrial space has climbed steadily over the past few years. And in 2025, tenant expectations have shifted - not only in terms of space, but also in the infrastructure, amenities, and performance that these parks are expected to deliver.

Across Cape Town, we're seeing an increasing number of well-designed light industrial parks coming to market. These are not the same cookie-cutter warehouses from a decade ago. Developers are building with a sharper understanding of operational efficiency, tenant retention, and long-term value - and tenants are taking notice.

Here's what's driving the demand and what tenants are prioritising right now.

1. Secure, Access-Controlled Parks Are Now the Standard

Tenants no longer see security as an optional extra. If the property is in a multi-unit park, access control and 24-hour manned security are non-negotiable. Distribution companies, e-commerce businesses, FMCG operators and light manufacturers need to know their staff and goods are safe, even during off-peak or overnight shifts. We've seen more developments like Skyhawk Park in Airport Industria and Malleon Park in Epping prioritise security infrastructure upfront - not only cameras and fencing, but integrated control systems and remote monitoring.

WAREHOUSE TO RENT CAPE TOWN

2. Functional Yard Space and Truck Access Are Critical

It's not just about the building anymore. Businesses moving into light industrial units are looking at full functionality. Can an interlink truck reverse safely? Is there room for turning and dispatch activity? Will the yard area cause unnecessary downtime?

700m² of covered yard space, like the offering at Connaught Road in Parow, used to be a luxury. Now it's a competitive advantage. These considerations impact throughput, delivery timelines, and how effectively a team can operate from day one.

3. Modern, Energy-Efficient Buildings Are in Demand

More tenants are paying attention to sustainability and energy efficiency - not always for ideological reasons, but because the cost of utilities and diesel continues to rise. Buildings that offer solar-ready roofs, rainwater harvesting, and LED lighting systems are more attractive to operators managing tight margins.

Green features are also increasingly built into lease discussions. In newer parks, landlords are beginning to invest in shared solar solutions or greywater systems - not just for ESG points, but because they know it keeps tenants long-term.

4. Tenants Expect Quality, But Also Flexibility

There's a growing segment of tenants in Cape Town that want modern, well-located spaces, but aren't necessarily looking for large-scale footprints. Smaller units, typically between 200m² and 800m², are being snapped up faster than they're being built.

The key is flexible layout. An open warehouse shell with two roller doors and minimal columns gives tenants the ability to customise. A small but neat office component is also seen as essential, but landlords must ensure it doesn't eat too far into the warehouse footprint.

Parks that offer a mix of unit sizes (and allow for expansion later) are better positioned to attract and retain tenants with growth plans.

5. Accessibility and Transport Links Are Critical

Location is still king. Tenants prioritise being close to major arterial routes like the N1, N2, and R300 - but they're also looking at traffic flows and access to public transport. Businesses need to ensure their staff can get to work easily, and logistics firms are assessing average travel times between distribution hubs and end-users.

This is where areas like Epping Industria, Montague Gardens, and Parow continue to outperform. They're centrally located, close to labour pools, and well-integrated with major transport infrastructure. But the surrounding conditions - roads, congestion, and ease of access - must still support high-frequency logistics activity.

6. Reliable Power is a Make-or-Break Feature

Load shedding continues to impact operations across the country. For light manufacturers, cold storage providers, and last-mile logistics tenants, power outages are more than an inconvenience - they're a direct hit to service delivery and productivity.

Units with access to backup power, whether through a park-wide generator or private alternative energy systems, are leased faster. Developers who've planned for this in advance are reaping the benefits. Tenants are now asking about load shedding schedules and backup solutions before requesting floor plans.

7. Fibre, Connectivity, and Tech Infrastructure

Tenants today operate in connected environments. Whether managing online orders, updating live inventory, or scheduling deliveries, the need for fibre-ready space is universal. In older areas or buildings, slow internet connections can be a dealbreaker.

Forward-thinking developers are ensuring fibre infrastructure is part of the base build. From there, tenants can scale as needed. Many also prefer buildings that support automation and data integration, especially in sectors like e-commerce, automotive components, or B2B supply chains.

Where Cape Town's Industrial Market is Headed

Cape Town's industrial sector continues to outperform many others in South Africa. Light industrial parks, in particular, are filling a gap between full-scale warehousing and smaller, outdated factory units.

The market is increasingly driven by practical, needs-based demand. Whether it's a manufacturer scaling up, an online store needing storage and fulfilment space, or a logistics company building its Cape Town footprint, the criteria are similar: safe, functional, efficient spaces that help them get on with business.

Landlords who build with this in mind - and brokers who guide clients with clarity - will stay ahead. There's still a shortage of modern, mid-size units in core locations. That means the opportunity for value creation, investment, and well-structured leasing remains strong.

For tenants, now is the time to secure space before the next cycle of rental escalations kicks in. For developers and investors, there's no better time to commit to well-located, user-driven industrial parks that meet today's operational demands.