For institutional fund strategies, Sandton carries the strongest investor flag in Johannesburg, with prime yields around 9.4%.

  • Trophy submarket (Sandton) carries the strongest investor flag.
  • Prime yield: 9.4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Johannesburg office fund strategy and flag

For institutional fund strategies, Sandton carries the strongest investor flag in Johannesburg, with prime yields around 9.4%.

TL;DR

  • Trophy submarket (Sandton) carries the strongest investor flag.
  • Prime yield: 9.4%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Johannesburg, that's Sandton and assets like Sandton City Office Towers, The Leonardo.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityJohannesburg
countrySouth Africa
regionEMEA
classARentLocal220 ZAR/sqft/yr
classARentUsd$12/sqft/yr
vacancy16.2%
typicalLeaseYears5
typicalRentFreeMonths6
submarkets5
primeYieldPct9.4%
primeYield9.4%
trophyAnchorSandton

Frequently asked questions

Where do core funds buy in Johannesburg?
Trophy submarket — Sandton — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

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