The Western Cape Logistics Boom: Why Warehousing Is the New Trophy Asset

The Western Cape Logistics Boom: Why Warehousing Is the New Trophy Asset

If you’re a REIT, private equity investor, or property fund manager, the message is clear: Western Cape warehousing is now the most coveted commercial asset class.

Driven by:

• Explosive e-commerce demand
• BPO logistics operations scaling in SA
• Diversified FMCG and pharma supply chains
• Regional storage requirements for national brands

Core Logistics Hotspots:

• Epping Industria: Blue-chip FMCG, pharma, and international logistics tenants
• Montague Gardens: Distribution centres and scalable warehousing for retail majors
• Airport Industria & Parow: Rapid-turn logistics hubs linked to Cape Town International
• Brackenfell & Stikland: Value-driven warehousing attractive to REITs targeting yield
• Atlantis SEZ: Strategic location for export-oriented manufacturing tenants

Investor Takeaway:
Warehousing in Cape Town offers REITs and private funds an exceptional balance of yield and capital growth—far outperforming traditional office or retail. We advise investors to prioritise this sector for long-term portfolio weighting.