This archive report was first published on 24 June 2021.
As the global vaccination rate increases and lockdown measures improve, multinational occupiers are re-examining their strategies and re-occupying their spaces in Nairobi, leading to increased market activity.
According to Anthony Havelock, Head of Agency at Knight Frank Kenya, the ongoing vaccination exercises are expected to spur the market, with occupier activity characterized by consolidation activity by both local and international businesses.
These businesses have taken advantage of lower rents to upgrade their offices, with Havelock noting that the market has given occupiers the upper hand in lease term negotiations and forced landlords/developers to be more flexible.
Across Africa, the performance of office rents remains mixed, with financial services and technology sectors driving up occupier demand. Knight Frank anticipates that the prime office market across the continent will remain favorable to tenants throughout 2021.
Trends on consolidation of space and flight to quality are also likely to continue as occupiers seek to leverage on the weaker market conditions to upgrade the space occupied.
However, locations such as Kampala are expected to record a rise in occupier activity due to the recent signing of the East African crude oil pipeline project, which is expected to drive up demand from the oil and gas sector.
