Last-mile owner and operator, Inospace, has expanded its Cape Town footprint with the acquisition of a 5,700m² site in Auckland Street, Paarden Eiland, just off Marine Drive. The property will be redeveloped and rebranded as Marine Works, a hub for micro-warehousing, storage and flexible workspaces.
The deal marks Inospace's eight acquisition this year, and it has secured over 22,000 m² of new space. The company has been building a cluster of logistics and warehousing sites, often leveraging the area's proximity to the CBD, port, and growing urban nodes.
"Paarden Eiland has experienced significant growth in both rental and capital values," said Rael Levitt, CEO and founder of Inospace. "With rental increases of around 15% per year, extensive redevelopment activity, and rising demand from e-commerce and logistics operators, it has become one of Cape Town's leading industrial corridors. We have done well in the area and continue to seek new opportunities."
From space to solutions
Inospace's strategy follows the same model it pioneered at the nearby Island Works park, where traditional industrial space was repositioned into flexible ecosystems. At Island Works, the group piloted its fulfilment and outsourced warehousing services, giving small businesses access to pick-and-pack operations, courier aggregation and last-mile logistics without the cost of running their own warehouses.
"There's a voracious demand for smaller logistics-enabled spaces. SMEs don't want 10,000m² on long leases. They want 100m² to 150m² units where they can operate quickly and efficiently. By adding fulfilment and outsourced warehouse services, we're helping them grow faster and smarter."
Tech-driven ecosystems
The company's tech platforms are central to this model. 'Lisa', Inospace's proprietary operating system, now manages client retention and deal flow, while a new onboarding platform streamlines move-ins and move-outs. A 'One Bill' system is also being rolled out, consolidating utilities and services into a single invoice, solving one of the biggest pain points in multi-let real estate.
"These aren't just tech add-ons," Levitt said. "They strip away admin and give our clients time to focus on their business. When our clients thrive, we thrive."
Strong results
The Marine Works acquisition follows strong half-year results. For the six months ended 30 June 2025, Inospace reported a 12% year-on-year increase in revenue and double-digit growth in net operating income. Its R3bn portfolio recorded 92% occupancy, with many parks in logistics corridors running at full capacity.
Tenant activity remains robust: 142 new leases were signed in Q2 alone, with more than three-quarters taken up by existing tenants expanding or renewing.
Analysts back the model
Inospace's blended model, last-mile real estate plus outsourced services, is ahead of the curve. "We're not just a landlord. By combining space, fulfilment and logistics into one ecosystem, we have built a sticky platform for SMEs and e-commerce operators," said recently appointed managing director David Bernstein.
Bernstein is bullish: "Warehousing is ultimately about feeding growing populations with food, clothing and consumer goods. As Cape Town expands, the need for logistics space will only intensify. At the same time, the high cost of new build industrial developments is limiting fresh supply. That's a powerful combination for investors. The fundamentals are all pointing in the right direction, and with demand surging, we're planning to roll out another 20 sites across the Cape Peninsula in the next 24 months."
