Top-down and bottom-up sizing converge within 9%: a Gauteng flexible-workspace market of roughly R4.1bn in FY2031, of which the Company addresses R268m and targets R73.4m.

7.1 Top-down market sizing

Gauteng contains an estimated 13.4 million square metres of A- and P-grade office space, of which approximately 2.6%, around 348,000 m², is currently operated as flexible workspace. On a five-year view, and assuming penetration reaches 4.2% against a stock base growing at roughly 1.5% per annum, flexible floorspace reaches approximately 578,000 m² by 2030. Applying an average achieved revenue of R590 per square metre per month across the quality spectrum produces a Gauteng market of approximately R4.1 billion in annual revenue in FY2031 terms.

Table 20 Top-down market sizing, Gauteng

7.2 Bottom-up market sizing

The bottom-up build starts from the occupier base rather than the floorspace. Gauteng contains approximately 34,500 formally registered businesses employing between 10 and 250 people in professional, financial, technology and business services. The Company estimates that 9% of these will hold some flexible workspace by 2031, at an average of 14 desks and an average achieved rate of R5,400 per desk per month across all quality tiers.

Table 21 Bottom-up market sizing and reconciliation to the top-down estimate

The two methods converge within 9%, which is acceptable for a market of this maturity. The Company uses the mid-point of approximately R4.0 billion as its working estimate and, where a single figure is required in this document, the top-down number of R4.1 billion as the more conservative denominator for its own share calculation.

7.3 From TAM to the Company's obtainable market

Table 22 Market funnel and the filters applied at each stage

The Company’s FY2031 revenue represents 1.8% of the Gauteng market and 27.4% of the specific sub-segment it targets. The latter figure is high and deserves scrutiny. It is achievable only because the sub-segment is narrowly drawn, enclosed premium suites in three specific nodes, and because the Company will operate three of perhaps twelve to fifteen centres serving that definition. If the definition is widened to all premium flexible space in the northern corridor, the Company’s share is 6.2%, which is a more comfortable number and the one an investment committee should test the plan against.

7.4 Demand drivers

Table 23 Demand drivers, evidence and sensitivity

7.5 Pricing dynamics and seasonality

Published rates in the premium segment have risen at approximately 7% a year since 2023, slightly ahead of inflation, driven by rising landlord escalations rather than by improving operator margins. Effective rates have risen more slowly because incentives, free months, waived deposits, fit-out contributions to larger members, have expanded. The Company models 6.5% annual escalation on published rates and assumes incentives are absorbed within the occupancy ramp rather than treated separately, which is marginally conservative.

Seasonality in this market is modest but real. Enquiry volumes peak in January to March and September to October, and fall sharply from mid-December. Because contracts are twelve months or longer and revenue is recognised monthly, seasonality affects the timing of new sales rather than the revenue run rate, and the Company’s monthly model treats the ramp as linear. A centre opening in November rather than April would reach stabilisation approximately two months later; both the Rosebank and Sandton openings are scheduled for April for this reason.

7.6 Market gaps

• Enclosed suites between 8 and 25 seats in premium nodes. Most operators optimise for either very small suites (2–6 seats) or large enterprise floors. The 8–25 seat band, the natural size of a professional services team or a country office, is comparatively under-supplied and is the core of the Company’s product design.
• Multi-node agreements within a single metro. Occupiers with teams in both Sandton and Rosebank currently contract separately. A single agreement spanning three nodes is a genuine convenience that no mid-sized local operator currently offers.
• Enterprise-grade IT and security at mid-market price points. Network segregation, independent access control and documented security policy are typically available only at global-brand rates.
• Waterfall City premium flexible supply. The node has the lowest vacancy in Gauteng but comparatively thin flexible provision, reflecting its later maturity.