This archive report was first published on 25 August 2019.
On August 25, 2019, a report by Broll Property Group revealed a significant increase in occupancy rates for top-grade office space in Nairobi.
The report showed that A-grade office space registered an occupancy growth of more than 27% to achieve a take-up of 83% from the previous 65%.
According to the report, landlords were also accepting revenue share as opposed to the typical rental rates based on space, and tenants were given longer fit-out periods.
"A-grade office space registered the highest year-on-year occupancy growth of more than 27% from 65% in the first half of 2018 to 83% in the first half of 2019," the report stated.
A-grade buildings in Nairobi have an average of 2.2 parking bays per 100 square meters, whereas B-grade buildings have an average of 1.5 parking bays per 100 square meters. Most of the A-grade office space is located in Westlands and Upper Hill.
B-grade offices, which have less parking space and lower quality finishes, recorded a growth of about nine percent to reach 88% from 80% at the end of June 2018.
"The increase in occupancy levels is largely attributed to increased interests from new entrants coupled with occupiers who are realising their expansion plans mainly from the manufacturing, pharmaceutical, and electronics sectors," said the report.
