A strong community shopping centre is not built around space alone. It is built around relevance.

That is what makes tenant mix so critical. In South Africa, the most resilient community and convenience centres succeed not by chasing every retail category, but by reflecting how local consumers actually shop. They make everyday life easier — combining essentials, services, convenience and value in a way that gives people a genuine reason to return. The data backs this up: according to the Clur Shopping Centre Index, community and smaller centres achieved year-on-year trading density growth of 5.1% in early 2025 — the highest of any centre type, and well ahead of CPI.

Convenience Drives Frequency

The strongest community centres are woven into daily life. They are where people stop for groceries, collect essentials, do their banking, buy a quick meal, or shop for practical value-led items. That kind of retail is anchored in frequency — and frequency supports the health of the entire tenant mix.

Orion’s own market commentary has highlighted the resilience of neighbourhood centres built around convenience services, essential retail and everyday lifestyle offerings. This is not a trend — it is a structural reality. As Nashil Chotoki, Retail National Asset Manager at Redefine Properties, has noted: grocers alone contribute 64% of turnover growth in well-run retail portfolios, which is why leading property funds are actively increasing their exposure to essential retail categories. (See: Property Wheel, December 2024)

A Tenant Mix Must Reflect the Catchment

No two communities shop in exactly the same way. A successful tenant mix starts with understanding the surrounding area: who lives there, how they travel, what they buy often, and what services they need close to home.

Belinda Clur, Managing Director of Clur International — whose index tracks performance across more than 5.4 million square metres of retail space in South Africa and Namibia — has emphasised that smaller centres have become the dominant growth segment, precisely because they serve defined communities rather than trying to be everything to everyone. Value-led retailers that adapt their product mix to local demographics consistently outperform those that apply a uniform national formula. (See: REI, March 2025)

Essentials Matter More Than Image

Fashion has a role in any shopping centre, but fashion alone is rarely enough to sustain a community retail environment. In today’s market, essential categories remain critical. Food, basic household shopping, banking, pharmacy, value retail and quick-service food all deepen convenience and encourage repeat visits.

South African retail data continues to show that consumers are prioritising value, convenience and necessity. The categories performing best are those tied to non-discretionary spending — and community centres that anchor around these categories are demonstrating both stability and growth. Retail trade sales in South Africa rose 3.7% in Q2 2025 compared to the same period in 2024, with value-led formats driving much of that momentum.

Key essential categories that strengthen a community centre’s tenant mix:

• Food retail and grocery anchors
• Banking, ATMs and financial services
• Pharmacy and health services
• Value general merchandise and household goods
• Quick-service and takeaway food operators

Services Make Centres More Useful

A shopping centre becomes significantly stronger when it allows shoppers to complete multiple tasks in a single visit. Banking, ATMs, telecoms, health services and other practical uses help embed the centre in everyday routine — and that added utility is a major reason why community centres can remain relevant even in a pressured consumer environment.

Redefine Properties’ research confirms that consumers still deeply value in-person shopping, especially at one-stop centres that provide access to everything in one location. (See: SA REIT Association, 2024)

Food Increases Dwell Time and Habit

Quick-service restaurants, takeaway options and small food operators can play an outsized role in community centres. They support dwell time, add convenience, and often encourage linked trips with other retailers. They are not a lifestyle extra — in many centres, they are part of the practical appeal.

New value-oriented entrants are reinforcing this trend. Brands entering the South African market with a mall-first strategy are deliberately placing themselves in high-traffic centres to drive repeat visits and longer dwell times — metrics that benefit the entire centre, not just the food operator.

Value-Led Retail Remains a Key Driver

Consumers are still spending carefully, and centres that support value-conscious shopping are often better positioned to hold footfall. The Clur Shopping Centre Index for 2024 showed that community and smaller centres achieved the highest year-on-year rental growth at 5.0% — outperforming both CPI and super-regional malls — while the rent-to-sales ratio across all centres held at its lowest level in five years, indicating a healthy and sustainable trading environment.

JLL’s South Africa Investment Review 2024/2025 further confirms that local convenience centres were the most actively traded shopping centre format in 2024, reflecting sustained investor confidence in the community retail segment.

The Orion Perspective

For Orion Real Estate, this topic is especially relevant because retail performance is not only about leasing space — it is about curating a centre that serves its community well. The right tenant mix supports traffic, relevance and resilience over the long term. It creates an environment where anchors, services, food and value-led retailers work together rather than compete in isolation.

Community shopping centres that are thoughtfully leased — with a clear understanding of their catchment, and a commitment to everyday convenience — are proving to be among the most resilient assets in the South African retail property landscape. That is a principle that shapes how Orion approaches every retail opportunity.

Learn more about Orion Real Estate’s retail portfolio: orionrealestate.co.za

Industrial Property in South Africa: Why It Remains the Strongest Commercial Sector

If one commercial sector has consistently shown resilience in South Africa, it is industrial property.

That strength is not accidental. Industrial space remains closely tied to the movement of goods, the efficiency of supply chains, and the practical needs of business. While office and retail trends can shift with sentiment, industrial demand is often linked to necessity. Goods still need to be stored, distributed and delivered, and businesses still depend on spaces that support logistics, warehousing and day-to-day functionality.

Recent market reporting continues to support this. Industrial property has remained one of the strongest commercial sectors, helped by low vacancies, rental growth and steady demand for logistics-focused space. SAPOA-linked reporting also showed strong overall industrial returns, while market commentary going into 2026 continued to describe the sector as solid and dependable.

Low vacancies support stronger performance

One of the clearest reasons industrial remains strong is limited oversupply in the right areas. Low vacancy levels support rental stability and stronger landlord confidence, and they also reflect a simple market reality: the right kind of industrial space is still in demand.

This matters because low vacancies are more than a number. They suggest that well-located and functional industrial stock is being absorbed more quickly than many other commercial property types. In practical terms, the sector remains active because it serves real operational needs.

Warehousing and distribution are leading the way

Not all industrial property performs equally. The strongest demand tends to sit in practical, modern spaces that support logistics, warehousing and distribution. Businesses increasingly want properties that improve stock handling, support vehicle movement, reduce travel time and create operational efficiency.

That preference is becoming more visible in the market. Recent sector commentary continues to show a clear bias toward logistics-oriented assets and modern industrial formats that support efficient movement and storage.

Location is everything

In industrial property, location has a direct effect on cost and efficiency. Proximity to major transport routes, suppliers, customer bases and freight infrastructure can shape turnaround times and operating costs.

That is why good industrial property is not simply about size. It is about how well that space supports the flow of business. In many cases, the right location can improve the speed, reliability and cost-effectiveness of an entire operation.

A resilience play in uncertain times

Industrial property also appeals because it offers a greater sense of predictability. In a market where both landlords and occupiers are watching costs carefully, stable demand and practical relevance create confidence.

Even where the broader economy remains mixed, industrial assets continue to benefit from their connection to business activity. That makes the sector attractive for occupiers who need functional space and for landlords looking for performance rooted in real operational demand.

Modern stock is winning

Today’s industrial tenants are looking for more than basic square metres. They want efficient layouts, secure premises, good yard space, truck access and buildings that align with modern operational needs.

This helps explain why major landlords are continuing to place confidence in modern logistics assets in strong nodes. Growthpoint’s late 2025 strategy commentary points directly to this shift, reinforcing how strongly the market values resilient, well-located logistics properties.

For Orion Real Estate, industrial remains an important part of a diversified property strategy. In a market that continues to reward practicality, functionality and strong positioning, industrial property offers enduring relevance for occupiers who want dependable space that supports business performance.