A massive spike in online sales during the Covid-19 crisis is expected to fuel unparalleled growth in e-commerce operations in South Africa resulting in warehouse investment demand.
The general rule of thumb is that e-commerce requires three times the logistics space of traditional storefronts.
“Therefore it is reasonable to assume that we will see a much greater warehouse space to support local e-commerce. In addition to this, warehouse investment demand might be accelerated by the growth of e-commerce in the rest of Africa,” says Estelle Meiring, Paragon Group director.
Improvements in racking, logistics and building technology have seen an increase in warehouse clear eave heights, often as high as 15 meters, as well as an increase in yard depths, sometimes in excess of 45 meters.
