Rental returns from prime offices in Nairobi continue to lag those in peer African cities, despite a recent rise in occupancy levels, reflecting the lingering effect of oversupply of office space that has forced developers to cut asking rents to keep and attract tenants.
An analysis of the office space market in 10 African economies by real estate firm Knight Frank shows that in Nairobi, the average prime rental rate per square metre stands at $13 (Sh1,679), while the average yield on these offices stands at 8.5 percent.
