While rental charges for Lavington — long associated with posh residences before commercial offices were set up — had an upward change of 2.2 percent, Riverside had 1.9 percent increase.
When classified in terms of business districts, Lavington ranked top within the second business districts that also include Karen and Gigiri.
Nairobi’s Lavington estate had the highest increase in top grade office rental charges in the 12-month period to June, a report shows.
Riverside, which boasts several high-end buildings, has the second highest return of the top ranked offices (called A-grade in real estate lingo), says multinational real estate management firm Broll Property.
While rental charges for Lavington — long associated with posh residences before commercial offices were set up — had an upward change of 2.2 percent, Riverside had 1.9 percent increase.
When classified in terms of business districts, Lavington ranked top within the second business districts that also include Karen and Gigiri.
Though second among all Nairobi A-grade areas, Riverside had the highest increase within the extended business districts that also include Westlands, Upper Hill, Kilimani and Parklands.
The average rental charges across all Nairobi business districts were relatively unchanged over the 12-month period.
“The average rental rates have remained fairly unchanged across the various nodes from first half of 2018 to the first half of 2019,” said Broll Property.
However, rental charges of A-grade offices in Parklands fell by 2.1 percent in the 12-month period, signalling reduced demand. The only other Nairobi-based offices that saw rental office prices fall was Kilimani with a 1.2 percent change.
Among the B-grade office types, the central business district (CBD) recorded the highest rise of 2.5 percent. However, the report indicated no CBD-based A-grade offices.
“Westlands registered the highest year-on-year B-grade rent change of 1.4 percent in the extended business district nodes,” said the report.
On the sale of office space, the report said it was not as vibrant a segment as that for rent and prices remained largely undifferentiated — at Sh10,000-Sh15,000 per square kilometre — in Nairobi.
“This is mainly attributed to the flexibility offered by leasing office space,” it said.
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