This archive report was first published on 24 June 2021.
As the world adapts to remote working, Nairobi's prime office rent has taken a hit, with a significant drop in demand leading to lower prices.
According to a recent report by Knight Frank, the monthly office rent in Nairobi's prime areas has dropped by Sh19.40 per square foot in the year to March, a decrease of Sh20.71 per square foot from the previous year.
This translates to a saving of Sh1,940 for a business occupying office space of 100 square feet, a welcome relief for companies looking to reduce their overhead costs.
The report, titled Africa Office Market Dashboard, tracks prime office rents in 28 cities, with Nairobi's monthly prime rent per square metre averaging Sh1,293 ($12), putting it at position six alongside Lilongwe as one of the cities with cheaper office rent.
Harare ranks as the cheapest (Sh754) followed by Blantyre (Sh1,005), Tunis (Sh1,077) and Gaborone (Sh1,288), while cities with expensive rent are Lagos (Sh6,734) and Luanda (Sh5,926).
Anthony Havelock, Knight Frank Kenya head of agency, attributed the drop in rent to the ongoing pandemic, which has led to a shift towards remote working, as well as an oversupply of commercial space and unfavourable economic conditions.
“There remains an oversupply of commercial space in most districts across the city which together with the slowly recovering economy and working from home dynamic has given occupiers the upper hand in lease term negotiations and forced landlords/developers to be more flexible,” said Mr Havelock.
