Online Reporter
Business Reporter
Mashonaland Holdings properties continue to command strong market demand after maintaining an 89 percent occupancy rate over the five months to May 2026, despite rising voids in central business district areas.
Voids in some properties in Harare’s CBD, where Mashhold has some of its key properties, have climbed above 60 percent.
Mashhold’s Chiyedza House SME Centre, which now comprises 90 self-contained offices and 40 retail shops, maintained an occupancy rate above 90 percent.
The property has maintained strong market demand, achieving average occupancy levels of above 90 percent, demonstrating continued appetite for affordable and flexible business spaces.
The group’s performance highlights the resilience of its property portfolio and tenant retention strategy at a time when the traditional CBD office market faces structural pressure from the migration of businesses to decentralised office locations.
Rising CBD vacancies have been attributed to changing tenant preferences, with professional services firms, financial institutions and technology companies increasingly moving to suburban office nodes in areas such as Borrowdale, Milton Park and Eastlea.
These locations offer advantages including improved parking availability, enhanced security, modern office designs and stronger digital infrastructure.
The shift represents a long-term change in the commercial property landscape, with many businesses committing to suburban premises through multi-year lease agreements, reducing the likelihood of a quick return to traditional CBD locations even as economic conditions improve.
Overall portfolio occupancy remained strong at 89 percent, supported by strong tenant retention and proactive leasing initiatives.
The improved occupancy levels highlight the group’s ability to maintain a resilient tenant base despite challenging conditions in the property sector.
At Pomona Commercial Centre, construction was completed in December 2024, with the group achieving occupancy on its 60 percent leasing pipeline as it targets full occupancy during 2026.
The group also made progress in its residential property segment, completing and disposing of the Greendale Avenue cluster residential stands.
In addition, Mashhold expanded its land bank through the acquisition of a 26.7-hectare land bank in Shurugwi, which has been earmarked for the development of 445 medium-density residential stands.
“Mashonaland Holdings recorded strong operational progress, underpinned by strategic property initiatives and market-focused growth. Portfolio occupancy increased to 89 percent, driven by tenant retention and proactive leasing.
The Pomona Commercial Centre project was completed in December 2024, with a 60 percent leasing pipeline secured ahead of full occupancy expected in 2026,” said Mashhold secretary Mr Egnes Madhaka in a trading update for the year.
The group also completed the sale of Greendale Avenue residential stands and acquired a 26,7 hectare Shurugwi land bank for 445 medium-density housing stands.
Mashhold has responded to the changing environment by adopting a more flexible leasing approach aimed at attracting and retaining tenants operating in an uncertain business climate.
The strategy includes moving beyond conventional three-year lease structures towards arrangements that provide greater flexibility for occupiers.
The company’s ability to sustain occupancy levels close to full capacity, while the wider CBD market experiences significant vacancies, points to the strength of its asset mix and proactive tenant management approach.
Although the exact contribution of suburban, industrial and CBD properties to the overall portfolio performance remains unclear, the 89 percent occupancy figure demonstrates that Mashhold has managed to preserve demand for its properties despite broader challenges affecting Zimbabwe’s office sector.
The performance positions the company among property players navigating the evolving real estate market, where adaptability, tenant-focused strategies and portfolio diversification have become critical drivers of growth.
