Owning a commercial property is a solid long-term investment, but keeping it profitable takes more than just signing tenants and collecting rent.
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According to Sean Grove, Business Growth & Commercial Manager for the Rawson Property Group’s Commercial division, landlords (or their representatives) need to take an active role in everything from tenant strategy to maintenance and compliance.
“Successful commercial property ownership is about consistency, foresight and building strong relationships,” says Grove. “You want your asset to perform well today, but also hold its value - and even grow it - over time.”
Choosing the right warehouse means balancing technical specifications with your operational needs, ensuring the space can accommodate your business today and adapt as it grows. But for first-time tenants, finding the right premises can feel daunting. According to Paul Stevens, CEO of Just Property, here’s what to consider before signing a lease:
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Start with the gross leasable area (GLA), thinking carefully about throughput, pallet requirements, and racking capacity. Ceiling heights in contemporary A-grade warehouses typically range from 8–13 metres, while premium spaces may exceed 15 metres to allow efficient vertical storage. The yard layout is equally important - look for dock levellers, on-grade doors, canopies, staging areas, and adequate yard depth for container-handling trucks. Standard dock heights of around 1.2 metres usually accommodate most transport fleets.
Check floor strength to ensure it can handle racking systems, forklifts, and heavy machinery. Make sure slabs are thick enough, joints are properly laid out, and floor loading capacity meets your operational needs. Power reliability is also critical: confirm that three-phase power is available, rooftop solar can be installed, and there’s capacity for backup generators and water security measures.
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Safety and compliance cannot be overlooked. Buildings with sprinklers should meet ASIB certification and SANS requirements, and insurers often require ASIB sign-off. If you plan to store hazardous materials, ensure compliance with SANS 10228 and Major Hazard Installation (MHI) regulations. For imported goods, check whether SARS-issued bonded warehouse licences are necessary.
When visiting potential warehouses, it’s helpful to keep a practical checklist in mind. Evaluate access and logistics including yard depth, dock types, turning circles, surface quality, and parking. Assess dimension and capacity - GLA, ceiling height, floor loading, column spacing, and stacking height. Clarify insurance obligations for both landlord and tenant.
Examine lease costs including rent, operating expenses, deposits, VAT, and escalation terms. Review lease terms, including tenant installation allowances, renewal options, assignment clauses, and reinstatement responsibilities. Look at office and amenities, power and utilities, and who is responsible for repairs and maintenance. Confirm safety and compliance features, including permits, hazardous material approvals, and sprinkler systems.
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Check support infrastructure such as security, IT connections, 24/7 operations rights, and storage. Consider sustainability measures, timing and location, and ensure zoning and municipal approvals align with your intended use.
Understanding your lease is crucial. Unlike residential leases, commercial leases are governed by common law and the contract you sign. The Consumer Protection Act generally does not apply to juristic persons with turnover or assets above R2 million, which makes the lease document the most important safeguard. Typical lease considerations include base rent, operating cost contributions, escalations, deposits, tenant installation allowances or rent-free periods, heads of terms, and any green clauses related to energy, water, or sustainability initiatives. Leases may be structured as gross, net, or triple net (NNN), with tenants bearing varying shares of expenses.
“My best advice is to never hesitate to ask questions, and to partner with an experienced commercial property broker,” Stevens. “With the right guidance, your warehouse can become an asset that supports growth rather than a burden that holds you back.”
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