Sandton has long been synonymous with office-led investment, but the evolution of the wider area is prompting a more nuanced view of what constitutes a compelling property investment opportunity. Justin Thom, Director of Galetti Corporate Real Estate,expands.
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Commonly referred to as ‘Africa’s richest square mile’ and home to the country’s densest cluster of office buildings, Sandton has seen its fair share of highs and lows over the years. Thom explains: “Rewind to 2015 – arguably the peak of commercial property performance in Sandton, a time when every business wanted to occupy space in the country’s most sought-after office node. Vacancies were hard to come by, yields were high and the market was generally booming. In the lead-up to the pandemic, however the office market started feeling the pressure. Oversupply of premium office space pushed vacancy rates higher and prices lower.”
Since then, Thom believes Sandton has had to pivot, pointing to the pandemic-driven shift towards mixed-use environments, adaptive reuse and property conversions. “Most recently, the good news is that the office market is recovering with SAPOA reporting office vacancies of 15.5% in Q1 ’26, down from its peak of 21.2% in 2022.”
But perhaps one of the biggest stories unfolding in Sandton lies beyond the CBD. “Currently, the decentralised office market is outperforming the CBD with vacancies of 11.5%,” says Thom, adding that investors are looking at the wider ecosystem, areas such as Wynberg, Kramerville and Marlboro, where residential, industrial, retail and hospitality uses usually intersect, often at competitive prices that offer more square footage and easy access to major transport routes.
Thom adds: “The Sandton story is becoming less about a single asset class and more about the strength of the ecosystem around the node. As the market evolves, investors are looking at where people live, where businesses operate, where goods move and where consumers spend — and how those uses interact with one another.”
The largest income contributor is the industrial component, which forms part of the Sandton Commercial Park precinct. It’s fully occupied, generates approximately R18.75 million in annual net operating income and benefits from access to Pretoria Main Road, Arkwright Avenue and the broader Sandton and Marlboro logistics corridors.
Diversification helps future-proof investments
The strongest opportunities are not always going to be found in the most obvious buildings or addresses. “There is value in understanding the relationship between the CBD and the surrounding precincts.”
He adds that diversification is becoming increasingly important when it comes to property investment. “An asset with exposure to several established demand drivers can provide a different risk profile from one that is entirely dependent on a single occupier or sector.”
Thom adds that this is where future-proofing becomes important. “Future-proofing an investment is about more than predicting exactly what the market will look like in five or ten years. It is about having an asset that is positioned to adapt as demand changes, a property with multiple established uses, strong accessibility and development or repositioning potential gives an investor more options.”
Sandton View: A diversification success story
A prime example of this diversification success story is Sandton View, a 46,802m² mixed-use estate in Wynberg coming to market via sealed bid through Galetti Corporate Real Estate.
“Sandton View offers investors exposure to four distinct income streams within a single integrated estate,” explains Thom. “The combination of industrial, retail, residential and hospitality uses creates a diversified income profile, reducing reliance on any single tenant category or property sector.”
The estate currently comprises approximately 26,173m2 of fully occupied industrial space, a 15,800m2 retail and clearance centre, 208 residential apartments and a 156 roomed hotel. Together, these components generate approximately R49.4 million in net operating income.
The industrial component
“The largest income contributor is the industrial component, which forms part of the Sandton Commercial Park precinct. It’s fully occupied, generates approximately R18.75 million in annual net operating income and benefits from access to Pretoria Main Road, Arkwright Avenue and the broader Sandton and Marlboro logistics corridors,” says Thom.
Residential provides the second-largest income stream, with 208 apartments currently 95% occupied and generating approximately R16.55 million in annual net operating income. “The accommodation caters to residents seeking access to Johannesburg’s northern economic corridor and the Sandton employment node.”
The approximately 15,800m2 Sandton Clearance Centre adds a fully occupied retail component, generating approximately R13.35 million in annual net operating income. The destination-led centre accommodates furniture, décor, homeware and value-retail operators with anchor tenants including Coricraft and @Home.
The fourth income stream comes from Mint Express Sandton View, a 156-key hospitality component operated under a double-net lease. It is fully occupied and contributes approximately R10.9 million in annual net operating income.
“It’s the combination of these four components that makes Sandton View particularly compelling,” says Thom. “Investors are acquiring an established income-producing estate with exposure to different demand drivers, rather than relying on a single asset class.”
There is also further growth embedded in the estate, with approved plans for an additional 84 residential units. The development opportunity is supported by approved plans, paid bulk contributions and installed services, providing a defined pathway to expand the residential component and future income.
“Offers are welcome from 31 August and we invite all competitive offers to come forward through a sealed bid process.”
Beyond the skyline
Looking at the bigger picture, Thom concludes saying that while there will always be demand for office space, investors need to look at Sandton through a wider lens.
“There will always be demand for well-located office space in Sandton, but if you look at the market through a wider lens, you can see that the investment story is increasingly being shaped by the relationship between offices and the uses around them. That is where some of the more interesting dynamics are emerging. The implication is that Sandton may increasingly be viewed not as a single CBD, but as the centre of a broader urban investment ecosystem.”
