By Maria Kalamatas | July 30, 2025
Cape Town, July 30 — Inospace, one of South Africa’s leading providers of flexible logistics and light industrial spaces, has reported double-digit growth for the first half of 2025. The company’s performance is being driven by a wave of small and medium-sized enterprises (SMEs) looking for adaptable facilities as they navigate a difficult economic climate.
“These aren’t traditional warehouse tenants,” said Rael Levitt, chief executive of Inospace. “They’re fast-growing businesses that need a place to store, process, and move goods without being locked into long, rigid leases. That flexibility is what’s fueling our expansion.”
A shift in demand during uncertainty
While South Africa’s economy faces headwinds from slow growth, rising energy costs, and a weak rand, SMEs have remained resilient in sectors such as e-commerce, last-mile logistics, and small-scale manufacturing. Inospace’s model — which offers shared services, shorter lease terms, and scalable units — is helping these businesses stay nimble.
“Many of our tenants are startups or exporters responding to changing markets,” Levitt explained. “They can’t afford to wait months for the right space or commit to decade-long contracts, so we give them the agility they need.”
Investing to stay competitive
To meet rising demand, Inospace has begun upgrading several of its logistics parks, adding renewable energy systems, modern loading bays, and enhanced security. These improvements are designed to help clients cope with electricity shortages and rising operating costs, which remain a major concern across the country.
Commercial property experts say the company’s growth reflects a wider trend: businesses are prioritizing modern, multi-use facilities over older, single-purpose warehouses.
“Providers that can offer flexibility and efficiency are the ones seeing the gains,” noted Nandi Peterson, a Johannesburg-based industrial property consultant. “Inospace is tapping into exactly what smaller, fast-moving firms are looking for.”
Looking ahead
The company plans to expand further in the second half of 2025, with new logistics hubs in development near Durban and Johannesburg to capture additional demand.
