Scott Thorburn | Manager | National asset – Office | Redefine Properties Ltd | mail me |
South Africa’s office sector has started 2026 on a strong footing. According to the Rode Report for Q4 2025, published by Galetti Corporate Real Estate, the country’s national decentralised office vacancy rate fell year-on-year from 12.5% to 11.7%. Meanwhile, Grade-A office rentals increased by 3.5%. Total rental growth for 2025 averaged around 4%.
The report also identifies a trend where office tenants prioritise well-located, high-quality buildings in strong nodes. In addition, stable capitalisation rates across the entire commercial property sector signal improving investor sentiment. This market recovery is also reflected in our office portfolio, where the vacancy rate has decreased to 11.1%. Consequently, this shift offers a clear signal of stabilisation for a sector that has faced significant structural pressure.
Sector recovery remains an uneven process, but consistency helps cement it. By committing meaningful capital to select new developments and existing property refurbishments, we leverage the upward momentum in the office property sector to its advantage. Part of that commitment involves reinventing the traditional office property. As a result, these spaces not only meet tenants’ unique needs but also offer features and amenities that enhance their overall value proposition and create a space with purpose.
The age of the intelligent workspace
Strong tenant fundamentals across the portfolio further support this momentum. Tenant retention exceeds 96%, which reflects sustained demand for well-located, quality office space despite broader market pressures.
Like any business, survival requires adaptation. The emergence of remote and hybrid work models after the COVID-19 crisis, combined with longstanding variables such as climate change, has prompted property owners and managers to reassess their assets. They now seek ways to make these spaces competitive, desirable and capable of meeting tenants’ unique needs.
Technology has become the most visible tool driving this transformation. Redefine continues to invest in platforms that centralise and digitalise physical property management functions into intelligent systems and seamless user experiences. The result extends beyond a smart building. Instead, tenants gain an intelligent workspace that gathers data and offers insights. These insights help managers better understand their assets and improve efficiencies while reinforcing the idea of a space with purpose.
For us, these efforts take the form of the GoCity super app, developed in partnership with Think Digital. Some of GoCity’s key capabilities include tracking tenant parking allocation against actual use, monitoring time and attendance levels through controlled property access, and supporting evacuations during emergencies. Furthermore, GoCity forms part of our broader digital transformation strategy, which prioritises convenience and efficiency for tenants and stakeholders. Consequently, technology will continue to play a critical role in our office portfolio.
Sustainability, one installation at a time
A smart building is also a green building. Therefore, property owners and managers must measure and manage their properties’ operational carbon emissions. New developments now include renewable energy, energy-saving technologies and sustainability-focused amenities as standard requirements. The returns on these investments also speak for themselves.
According to research, including insights from the MSCI Global Green Building Index, Green Star-certified buildings tend to deliver stronger total returns and lower occupancy costs than non-certified assets.
Across our office assets, sustainability upgrades continue to roll out. These upgrades include expanded solar PV capacity, water-efficient infrastructure and Heating, Ventilation, and Air Conditioning (HVAC) optimisation. Together, they contribute to improved operational efficiency and long-term asset resilience.
Integrated sustainability in office properties includes energy-efficient systems, water-smart infrastructure and reduced operational carbon intensity. These measures maximise solar PV installations on available roof space and incorporate onsite battery storage, water-efficient toilets, electronic taps, efficient HVAC systems and other equipment. In addition, property teams conduct waste stream audits and implement onsite sourcing, recycling and internal waste management initiatives.
These installations also rely on collaboration, which means tenants and other property stakeholders become partners in ensuring tangible impact. In this way, sustainability initiatives help reinforce every upgraded office as a space with purpose.
Collectively, these efforts contribute to broader net-zero goals. They also enable REITs like Redefine to manage spaces that support an eco-conscious future.
Creating a space with purpose
Motivated by the office sector turnaround, we are seizing opportunities to upgrade and modernise our office assets. As such, we are strategically investing in upgrades across key regions such as Gauteng.
Examples include Commerce Square in Sandhurst, Hertford Office Park in Midrand and Loftus Park in Arcadia. With each space we transform and bring to market, we align ourselves with what tenants need, expect and deserve.
This active portfolio repositioning also benefits from a disciplined investment approach. As a result, the group’s net operating profit margin improved to 77.2%, reflecting enhanced efficiency across asset classes.
Ultimately, every upgrade initiative focuses on refining the appeal of office spaces while delivering a seamless and convenient experience to end users. South Africans who commute to work daily, attend meetings in boardrooms and work from their desks deserve calm, secure and welcoming environments that support comfort and productivity.
Every office space needs to embody a purpose. Through property upgrades, human and tenant-centred development, proptech and the leveraging of recovering market conditions, Redefine continues to embed that purpose across its portfolio and establish a new benchmark for office assets.
