How E-Commerce is Reshaping Office and Retail Space in South Africa

South Africa's e-commerce market has grown from R37 billion to a projected R130 billion in under a decade. That kind of growth doesn't just change how people shop — it changes how businesses use space.

Recent industry reporting indicates that online retail sales reached approximately R96 billion in 2024, with the 2025 market projected to exceed R130 billion. Growth has accelerated consistently, outpacing traditional retail by a significant margin.

This is not simply a shift in how transactions take place. It is changing how businesses think about location, footprint, and the role of physical space in supporting both customer engagement and operations.

For landlords and occupiers, the implication is not that physical space is becoming less relevant — it is that its role is becoming more defined. Space that performs will hold its value. Space that doesn't will come under pressure.

This shift is already evident across the OfficePlace network, where occupiers and landlords are increasingly aligning space decisions with evolving operational requirements.

Retail Space: A Change in Role, Not Relevance

Retail space is no longer purely transactional. It is increasingly expected to support a combination of brand presence, customer experience, and fulfillment.

• Stores are being used as showrooms as much as sales points
• Click-and-collect has become embedded in the retail model
• Accessibility and convenience are often more important than scale

This is leading to a more deliberate approach to how retail locations are selected and configured.

In practice, this means that well-positioned retail space continues to perform, but for different reasons than before. Locations that support ease of access and integration with online fulfilment are attracting more consistent demand, while others may see reduced relevance over time.

This is increasingly influencing how retail space is positioned within the broader commercial property for rent market.

Insight: Retail is not declining. Its role is becoming more specific and more operationally integrated.

Office Space: Evolving with Business Requirements

As businesses expand their digital and operational capabilities, the role of office space is also shifting.

Across the OfficePlace’s portfolio and client activity, this is reflected in growing demand for flexible office space, coworking environments, and well-located office park developments remain relevant.

• Demand is moving toward more flexible and adaptable office space, including coworking space and shorter-term leasing models
• Well-located office park environments remain relevant, particularly where they support accessibility and employee experience

At the same time, occupiers are reassessing how much space they need and what that space needs to do.

Rather than reducing office space altogether, many businesses are refining it. Space that does not directly support productivity or collaboration is being reconsidered, while space that enables operational efficiency continues to hold value.

Insight: Office space is not being removed from the equation. It is being reshaped around function and flexibility.

The Convergence of Retail, Office and Operational Space

One of the more significant shifts driven by e-commerce is the growing overlap between different types of commercial space.

• Retail locations are increasingly being used for collection and fulfilment
• Office environments are incorporating operational and customer support functions
• Location decisions are being influenced by access, distribution efficiency, and proximity to customers

This is also influencing how both commercial property for rent and business property for sale are evaluated.

Properties that can support multiple functions, or be adapted over time, are becoming more attractive. At the same time, single-purpose space that cannot evolve with business needs may face greater pressure.

Insight: The distinction between retail, office, and operational space is becoming less defined. Flexibility is becoming a key driver of value.

A More Considered Approach to Property Strategy

E-commerce is not replacing physical space. It is redefining how it is used.

For landlords, this means understanding how demand is shifting and ensuring that assets remain aligned with current and emerging requirements.For occupiers, it means selecting space that supports both immediate needs and longer-term operational flexibility.

In this environment, commercial property decisions are becoming more deliberate, with greater emphasis on how space performs rather than simply where it is located.

The brokers at OfficePlace work alongside landlords and occupiers to navigate these shifts, providing insight into how space can be positioned to remain relevant in a changing market.

Sources

• Statistics South Africa — The rise of e-commerce in South Africa (2018–2022 retail share growth)
• Engineering News — South African online retail sales reaching ~R96 billion (2024) and forecast to exceed R130 billion (2025)
• Mastercard — E-commerce growth rates and acceleration in online retail adoption in South Africa