Nairobi office vacancy tightens as occupiers chase Grade A space
Prime office occupancy has climbed past 81%, but the recovery is concentrated in modern, well-specified buildings.
Nairobi's commercial office market is recovering unevenly. Prime office occupancy climbed above 81%, supported by strong uptake in high-specification developments, while prime vacancy across Upper Hill, Westlands and Riverside has held broadly stable at 18-20%.
The defining dynamic is a flight to quality. Buildings with modern amenities, energy efficiency systems, adequate parking and credible ESG credentials continue to attract tenants. Older stock without those features is struggling, with some space in parts of the CBD and older sections of Upper Hill remaining vacant for extended periods.
Grade A rents have been broadly flat at roughly KES 100-150 per square foot per month, suggesting landlords are competing on specification and incentives rather than headline rent.
Limited delivery of new high-quality space is expected to support occupancy further, which favours owners who invest in upgrading rather than discounting.
