A woman exits the Nairobi Securities Exchange (NSE) at their new offices
The Exchange on 55 Westlands Road on January 24, 2014. Westlands and
Upper Hill are on the receiving of demand for office space as congestion
pushes corporates out of Nairobi's Central Business District. DIANA
NGILA (NAIROBI).
By
Westlands and Upper Hill are on the receiving of demand for
office space as congestion pushes corporates out of Nairobi's Central
Business District.
“Traffic congestion is impacting on
peoples decision on where to rent office space. There is a gradual move
from Central Business District towards Westlands and Upper Hill. This
has caused under supply in Westlands,” said Mentor Management chief
executive officer, Mr James Hoddell.
The two areas have seen an increase of rents at the rate of 10 per cent per annum while the other areas are relatively flat.
Development
and property managers Mentor Management said the market for office
space is tilting towards Grade A office space- high quality offices with
parking space and built to specifications- and which costs upto Sh140
per square feet.
He said the demand for offices was
moving towards international standards as more multinationals seek to
open business and expand operations in the country.
Mr
Hoddell, however said most of the developers were constructing Grade B
offices, that might face lack of demand in the coming years.
“There
is a mismatch of quality and location of office space demand and
supply. Its important to have the right buildings and locations that
attract demand,” he said.
The other office space type-Grade B- cost an average of Sh62 per square feet and has no added facilities like parking space.
According
to their projections, the construction of new buildings currently going
on in Upper Hill is taking the area to a point of over supply in the
next two years.
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