Across South Africa, a transformation is unfolding in the commercial property sector. Property conversions – from office blocks to apartment blocks, retail centres to medical facilities or workshops into for-hire storage or warehouses – is fast becoming a dominant trend.
According to Greg Dart, director at the High Street Auction Co, the momentum is being driven by both market dynamics and investor strategy.
“Not only does the auction platform unlock liquidity in the marketplace for private investors or state-owned enterprises with large property portfolios that no longer match their future business strategies, but it also provides an invaluable foundation for future development and re-development,” he said.
The upcoming High Street Auction on 17 July will see nearly 40 properties go under the hammer – many of which, Dart believes, are ideal for reinvention.
A surplus in commercial office space has prompted a push toward retrofitting, rather than demolishing and rebuilding. Dart argues this is not only a cost-effective approach but one that aligns with sustainability goals.
“There is a need for capital allocation for asset repurposing. Converting underperforming office stock into alternative uses will ultimately remove obsolete inventory and tighten the market,” he said.
The High Street team agrees that reimagining existing buildings – rather than building from scratch – can save time, reduce costs, and help sidestep zoning and regulatory hurdles. More importantly, it extends the useful life of buildings while reducing environmental impact.
Rethinking Retail
Investor and shopper preferences have also shifted. Neighbourhood retail centres anchored by essential services like grocery stores and pharmacies are outperforming large regional malls. These smaller centres offer stable foot traffic and resilience to economic volatility.
Yet, retail innovation doesn’t stop there. Dart notes a growing trend of hybrid retail models, where physical stores serve both as showrooms and distribution points for online sales. Properties are being adapted to suit these evolving needs, as well as to accommodate medical and professional services.
A prime example is Sunward Palms in Sunward Park, Gauteng, which is on offer at the July 17 auction. Dart believes the property is ripe for medical conversion.
“This 6,232m² property is ideally suited for a proposed medical day hospital development as it is perfectly positioned to complement the existing anchor tenant, Virgin Active, plus nearby medical facilities including the Netcare Sunward Park Hospital,” he explains.
Hospitality’s Next Chapter
The hospitality sector is also seeing significant reinvention. As the industry recovers, new operators are entering the market, converting older properties to meet modern tourism needs – or reimagining them entirely as retirement villages, medical facilities, or residential estates.
Among the listings in the upcoming auction is Dozi’s Back to the Roots Venue in Hartebeespoort, alongside properties in Dullstroom, including the quirky Cpirit Market Place, with its retail spaces housed in repurposed shipping containers, as well as self-catering cottages and a guesthouse.
Commercial-to-Residential Conversions
Perhaps the most prominent trend reshaping the market is the conversion of commercial buildings into residential or student accommodation. Driven by urban migration, lifestyle shifts, and the ongoing reality of remote work, mixed-use developments are now in high demand.
“The growth of live-work-play precincts reflects both the diversification of income streams and their strong appeal to tenants seeking lifestyle and flexibility,” said Dart.
He added that many local governments are also backing these conversions – particularly those that include affordable housing – as part of a broader strategy to address urban decay and housing shortages.
One standout case is the transformation of a Salt River property, originally sold at auction by High Street to developer Divercity for R30 million.
The site is now being developed into 9 Hopkins, a R280 million affordable rental project that will bring nearly 400 apartments to the Cape Town neighbourhood.
