Logistics parks operator Inospace has expanded its Cape Town footprint with the acquisition of a 5 700 m2 site in Paarden Eiland which will be redeveloped and rebranded as Marine Works, serving as a hub for micro-warehousing, storage and flexible workspaces.

The deal marks Inospace’s eighth acquisition this year, securing over 22 000 m2 of new space, aligned with the company’s aim of building a cluster of logistics and warehousing sites that leverage Paarden Eiland’s proximity to the central business district, port and growing urban nodes.

“Paarden Eiland has experienced significant growth in both rental and capital values,” said Inospace CEO and founder Rael Levitt, explaining that it has become one of Cape Town’s leading industrial corridors with rental increases of around 15% a year, extensive redevelopment activity and rising demand from e-commerce and logistics operators.

“We have done well in the area and continue to seek new opportunities.”

The Marine Works acquisition follows strong half-year results. For the six months ended June 30, 2025, Inospace reported a 12% year-on-year increase in revenue and double-digit growth in net operating income.

Meanwhile, its R3-billion portfolio recorded 92% occupancy, with many parks in logistics corridors running at full capacity.

Further, tenant activity remains robust with 142 new leases signed in the second quarter, of which more than three-quarters were taken up by existing tenants expanding or renewing.

From Space to Solutions
Inospace’s strategy follows the model it pioneered at the nearby Island Works park, where traditional industrial space was repositioned into flexible ecosystems, combining last-mile real estate with outsourced services.

At Island Works, the group piloted its fulfilment and outsourced warehousing services, affording 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. Small and medium-sized enterprises (SMEs) don’t want 10 000 m2 on long leases. They want 100 m2 to 150 m2 units where they can operate quickly and efficiently,” Levitt said.

He explained that, through its fulfilment and outsourced warehouse services, Inospace is helping SMEs grow “faster and smarter”.

“By combining space, fulfilment and logistics into one ecosystem, we have built a sticky platform for SMEs and e-commerce operators,” said recently appointed MD David Bernstein.

“Warehousing is ultimately about feeding growing populations with food, clothing and consumer goods.”

He added that, as Cape Town expands, the need for logistics space will intensify. Concurrently, the high cost of new build industrial developments is limiting fresh supply, creating a significant opportunity for investors.

“With demand surging, we’re planning to roll out another 20 sites across the Cape Peninsula in the next 24 months,” Bernstein said.

Tech-Driven Ecosystems
Technology plays a significant role in Inospace’s operational model. The company’s proprietary operating system ‘Lisa’ manages client retention and deal flow, while a new onboarding platform streamlines move-ins and move-outs.

The company is also rolling out a ‘One Bill’ system, which consolidates utilities and services into a single invoice, addressing one of the most persistent challenges in multi-let real estate.

“These aren’t just tech add-ons. They strip away admin and give our clients time to focus on their business. When our clients thrive, we thrive,” Levitt concluded.