South Africa’s office vacancy rate eased to 12.6% in the first quarter of 2026, the lowest since mid-2020, pointing to a broad-based but gradual recovery across major nodes.
This comes as most nodes recorded declining vacancies, with decentralised markets at 11.5% remaining well below CBDs at 16.1%, as occupiers favour accessible, amenity-rich locations aligned with hybrid working trends, according to the latest South African Property Owners Association (Sapoa) office vacancy report.
“Asking rentals across many major office nodes remain below 2019 levels and while vacancy rates have improved the pace of rental growth remains measured, suggesting a full recovery will take time,” the report said.
Meanwhile, more than 50% of vacant space is concentrated in buildings that are at least half empty, particularly in the B-grade segment, where structural and financial constraints limit repositioning.
Performance across metros remains uneven. Cape Town is still the strongest-performing market at 6.0%, supported by consistent node-level recovery. Johannesburg, at 15.5%, is improving but remains elevated, while Durban, at 11.7%, is recording steady gains, underpinned by stronger demand in decentralised nodes.
“The divergence between higher- and lower-quality stock continues to reflect a flight to quality. Narrow rental gaps between prime and A-grade space are supporting upgrades, a trend likely to remain a key driver of vacancy shifts into 2026 as competitiveness increasingly depends on building quality,” the report said.
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More broadly, vacancy rates in the country’s major decentralised office nodes remain well below those in CBDs, at 11.5% compared with 16.1% nationally.
Tshwane, however, stands out as an exception: its CBD vacancy rate, at 3.5%, is lower than most decentralised nodes, reflecting a unique demand base in which national and provincial government departments continue to provide a stable underpin to occupancy, the report said.
Meanwhile, development activity remains subdued. Office construction accounts for just 0.8% of existing stock, with 145,324 square metres under way, largely driven by tenant demand, as evidenced by a pre-let rate of 58.4%, underscoring continued caution among developers.
“Johannesburg metro continues to record the highest decentralised vacancy rate at 13.8%, though this has eased from recent peaks, signalling a gradual recovery. In contrast, Cape Town remains the strongest performer at 2.7%, underscoring sustained demand resilience,” the report said.
Rosebank is widely regarded as one of Johannesburg’s stronger-performing office locations, driven by its amenities, transport links and modern stock. With a vacancy rate of 7.8%, it remains well below the Johannesburg average, reflecting sustained demand for well-located space.
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