The Nairobi office sector development pipeline is estimated at c. 2,452,385 sq ft  in 2022. This accounts for approximately 20% of total stock indicating an existing supply glut in the market.

In terms of market performance, takeup activity remains relatively low compared to 2021 due to rising inflation and election related uncertainty that resulted in a ‘wait and see’ attitude by occupiers.

However, Grade A offices continue to reflect relatively lower vacancy levels estimated at 20%. This has been underpinned by the flight to quality trend that has continued to drive occupier preferences for grade A offices, with major occupiers especially multinationals opting to take up space in this segment.

Generally, the market remains largely tenant driven with key markets such as Kilimani and Westlands recording little to no growth in rents estimated at -0.4% and 0.5% respectively over the past 5 years. This trend is expected to play out for the rest of the year as the supply glut continues to impact on the  market.

Overall, some of the major completions expected/seen in 2022 include;

• Trade and Development Bank Tower
• GTC Towers
• The Riverside Cube

For more information on Nairobi’s real estate market, you can view our detailed report that highlights different sectors in the market.

We love your feedback! Let us know your thoughts about the Nairobi Office pipeline market by sending an email to [email protected].