Demand for Office Space in Kenya

1. Kenya’s High End Office Space Market Is Thriving under High Demand In the fast-growing real estate market of Kenya, especially Nairobi, certain segments of real estate are showing phenomenal growth. This validates the forecasts of Mentor Management on office rental markets. It is said Nairobi will experience fluctuations in office demand even though a decrease may occur. According to real estate experts, Investors are cashing in on the rising demand for commercial buildings in Nairobi. The high demand is evident in the way the commercial and office space market is thriving on Mombasa Road, Ngong Road, Gigiri, Westlands, Upper Hill, Lavington, Thika Road, Parklands, Ridgeways, and Runda areas. This follows investors shifting focus to high-yielding commercial buildings. As for Parklands, offices to let in parklands are the favorite of MNCs and foreign investors. What is notable is that most office properties are iconic landmarks with fresh and healthy business environments. The highlights of office properties can be summed up in the following features: •Basement Parking •Backup power generator •High speed lifts •Kitchenette on every floor •Internet & TV connectivity •High Quality Security features •CCTV, Intercom •Electric fencing A market survey on the Kenyan office property market said that new office development would deliver 2.8 million square feet of offices. The areas where the demand for office space is highest include the Nairobi suburbs of Westlands, Kilimani, Ngong Road and Gigiri. Meanwhile, investment firm Cytonn Investments said there will be an undersupply of about 3.6 million square feet in 2016 and 6.1 million in 2017 as demand for Grade A offices in areas such as Westlands, Parklands and Gigiri peaks. The urge for offices to buy in Kenya is driven by the rise of the country as a hub of MNCs, SMEs and professional services, Real Estate expert Johnson Denge noted that the supply of office space in Nairobi is increasing at a CAGR of 27.5 percent, from 1.6 million square feet in 2011 to 5.4 million square feet in 2015.

2. Among the high demand office markets, Kilimani tops the list with the highest uptake at 84 percent, followed by Westlands at 71 per cent. High-speed office development outside the CBD has been observed in Gigiri, Thika Road, and Karen areas, accounting for 25 percent of total office space. The demand in Nairobi will grow further as the professional service sector and banking and insurance hubs have unleashed a huge demand for commercial buildings. Thanks to this high demand, between August and September the value of building plans ratified by the City County of Nairobi (CCN) jumped 58.2 percent. Source URL: https://propertydevelopmentkenya.wordpress.com/2016/08/16/kenyas-high-end- office-space-market-is-thriving-under-high-demand/