Is Confidence Returning to the Sandton Office Market 2026?

If you’ve been watching the Sandton office market over the past few years, you’ll know it has faced its fair share of challenges: rising vacancies, softer demand and a long period of uncertainty. That’s why a new lease concluded at Growthpoint’s 15 Alice Lane has caught the attention of many in the industry. As Chris Humphries explains, “When prime office space starts filling up again, it’s usually one of the clearest signs that sentiment is shifting.”

Finalised in February, this lease shows that demand for quality, well‑located office space is strengthening once more. Positioned in the heart of Sandton, 15 Alice Lane offers excellent transport access, modern amenities and a high concentration of established corporates. These factors continue to support Sandton’s long‑standing position as Africa’s financial capital, making the area particularly attractive for businesses planning ahead.

What This Means for the Sandton Office Market

This transaction offers a useful snapshot of where the broader Sandton market stands. According to Chris, “The first indication is that confidence is returning, especially among tenants who want reliable, modern space in prime locations. While older or secondary buildings may still be working through higher vacancies, top‑tier buildings are seeing meaningful traction,  which typically happens at the start of an office‑market recovery.”

It also reflects a shift in how businesses are thinking about their workspaces. Organisations are prioritising stability and long‑term value, and Sandton remains one of the few nodes in the country where businesses feel secure investing in their office footprint. Strong infrastructure, dependable transport connections and a well‑established corporate community all contribute to this renewed confidence. For many companies, the question has moved from “Should we take office space?” to “Which space will support our growth best?”

Why the Lease Made Strategic Sense

For businesses like Bram Fischer and Growthpoint, choosing 15 Alice Lane was not simply about securing an office. As Chris notes, “It was a strategic decision aimed at improving day‑to‑day efficiency, supporting long‑term growth and remaining in a location that continues to hold its value.”

In a market where top‑quality space is limited, securing space early ensures access to the best buildings before availability tightens even further.

How the Deal Came Together

Large commercial leases require more than market insight; they rely on alignment, careful planning and the right expertise. Chris Humphries, from Galetti’s Broking team, worked closely with both the landlord and the tenant to ensure the lease was structured in a way that made sense commercially and strategically.

He began by understanding each party’s objectives, then analysing demand trends in Sandton’s upper‑end office market to guide an informed negotiation process. From matching the right tenant to managing due diligence and finalising the agreement, the process flowed smoothly and efficiently. As Chris explains, “The result was a well‑timed lease that supports the long‑term goals of everyone involved and offers a glimpse of what may lie ahead for the rest of the Sandton office market.”

A Clearer Picture of the Market

This lease suggests that Sandton’s recovery is beginning at the top end first. Premium buildings are attracting committed tenants, businesses are expanding into higher‑quality space, and the need for experienced advisory support is greater than ever as competition for the best locations increases.

In Chris’s words, “Above all, the deal at 15 Alice Lane signals something the market has been waiting to see: confidence returning  cautiously, but meaningfully  to Sandton’s commercial centre.”

Congratulations to Chris Humphries for leading the transaction with professionalism and precision.

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Contact: Chris Humphries
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What You Need to Know About the Government’s R155bn Property Plan

By John Jack, CEO of Galetti Corporate Real Estate

South Africa’s R155bn Property Plan marks one of the most significant structural shifts in how the state approaches real estate ownership, management, and long-term value creation. As the country’s largest property owner, government controls a vast portfolio that has historically been underutilised, poorly maintained, and inefficiently managed.

That could change with the proposed South African National Property Company (SANPC), a new state-owned entity set to oversee roughly 88,000 buildings and five million hectares of land valued at about R155 billion.

The idea behind SANPC is simple: introduce professional asset management and commercial discipline to public property. If successful, this shift could improve building conditions, increase efficiency, and unlock significant long-term value for the state. However, transforming a portfolio of this size will take time, with meaningful impact likely only emerging over the next decade.

Understanding the R155bn Property Plan and SANPC’s Role

At its core, the R155bn Property Plan is about repositioning government-owned real estate as a strategic asset rather than a passive liability. From a market perspective, this represents a transition towards institutional-grade asset management, similar to what is seen in listed property funds and sovereign wealth-backed portfolios globally.

SANPC’s mandate is expected to include:

• Centralised asset oversight and performance tracking
• Structured maintenance and refurbishment programmes
• Strategic disposal or repurposing of non-core assets
• Improved leasing and occupancy management

From our experience advising corporate occupiers and property owners, the lack of centralised control has long been a key inefficiency in the public sector. Introducing a single, accountable entity could significantly improve decision-making speed, capital allocation, and long-term planning.

Inefficiencies Must Be Addressed Within the R155bn Property Plan

One of the biggest opportunities within the R155bn Property Plan lies in addressing inefficiencies. Government faces a maintenance backlog of nearly R30 billion while spending around R6 billion annually leasing office space from private landlords – despite owning many vacant buildings.

Redirecting funds from leasing into upgrading state-owned properties could reduce waste and strengthen public assets.

This approach would require substantial upfront investment, particularly to refurbish neglected buildings. But it could also stimulate economic activity, boosting construction, infrastructure upgrades and local job creation. Strong governance and transparency will be essential here.

SANPC could also reposition government property as a revenue-generating asset rather than simply operational infrastructure. The long-term vision includes building a sovereign-style investment platform, where public real estate contributes to national income and attracts private investment.

A key insight from working within the commercial property sector is that underutilised portfolios often represent hidden value. Unlocking that value requires disciplined capital deployment, clear performance benchmarks, and a long-term view – all of which SANPC aims to introduce.

Revitalisation Opportunities Linked to the R155bn Property Plan

Beyond internal efficiencies, the R155bn Property Plan has the potential to support urban regeneration. Many government buildings are located in key economic hubs, including struggling central business districts.

Upgrading these assets could help revitalise surrounding areas, restore investor confidence, and attract further development.

Planned projects reportedly include:

• Redevelopment of government precincts
• Upgrades to logistics infrastructure such as harbours
• Improvements to public service facilities including courts and police stations

From a real estate advisory perspective, this type of intervention often acts as a catalyst. When large, visible assets are upgraded, it signals confidence in a node, which in turn encourages private sector investment and stabilises surrounding property values.

In nodes where vacancy and neglect have become entrenched, this kind of structured intervention can materially shift market sentiment.

How the R155bn Property Plan Impacts the Office Market

The private property sector may also feel the effects of the R155bn Property Plan. Government tenants currently occupy a large share of lower-grade office space, and a shift back into state-owned buildings could increase vacancies in that segment.

However, any changes are expected to happen gradually over several years.

In the short term, government-owned properties are unlikely to disrupt rental pricing significantly, as they typically operate at market-related levels and involve complex leasing structures.

From a leasing and advisory standpoint, this creates a nuanced outlook:

• B-grade and lower-grade office stock may experience increased vacancy pressure
• Well-located, high-quality office assets are likely to remain resilient
• Landlords reliant on government tenants may need to reposition or diversify

A key takeaway is that this is not an immediate disruption, but rather a slow structural shift that market participants need to monitor closely.

Investment Implications of South Africa’s R155bn Property Plan

For investors, the R155bn Property Plan introduces both risk and opportunity.

On one hand, reduced government leasing could impact income stability in certain office segments. On the other, the introduction of a more structured, commercially driven public property platform could unlock new forms of partnership and investment.

Potential opportunities include:

• Public-private partnerships on redevelopment projects
• Access to repositioned or surplus government assets
• Increased activity in construction and infrastructure-linked sectors

From an investment strategy perspective, this reinforces the importance of asset quality, location, and tenant diversification. Portfolios heavily weighted towards single tenant reliance, particularly government, may require reassessment.

Governance, Execution, and Long-Term Outlook

While the R155bn Property Plan presents a compelling framework, execution will ultimately determine its success.

Key risks include:

• Governance and oversight challenges
• Funding constraints for large-scale refurbishment
• Operational inefficiencies during the transition phase

However, if managed effectively, SANPC could introduce a level of professionalism and accountability that has historically been lacking in public sector property management.

Based on market experience, large-scale portfolio transformations typically unfold over extended periods. The expected timeline of meaningful impact over the next decade aligns with global benchmarks for similar initiatives.

Final Thoughts on the R155bn Property Plan

The creation of SANPC represents a significant shift in how South Africa manages public property. While challenges around scale, funding, and governance remain, the concept offers a clear opportunity: turn a largely underperforming asset base into a driver of economic growth, investment, and long-term value for the state.

From a commercial real estate perspective, the R155bn Property Plan should be viewed as a structural evolution rather than a short-term disruption. For investors, landlords, and occupiers, the key will be understanding where the risks lie and where new opportunities are likely to emerge as the strategy unfolds.

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