A growing number of corporations in Nairobi are turning to Occupier Services consultants to optimize value from their real estate spend as they seek efficiency and cost-reduction in their operations.
According to experts at Knight Frank Kenya, cost-sensitivity has resulted in companies exploring various options including consolidating their workspaces, sub-letting surplus office space or moving into more productive and efficient spaces.
The trend has also seen enterprises embrace alternative workspace solutions such as serviced offices which allow for co-working and flexibility in managing leasing costs. On the development side, office accommodation is shifting focus to the end-user perspective with a view to delivering progressive real estate solutions.
“With the many trends shaping up in the office market, Occupier Services consultancy is in high demand, where we advise companies on how best to accommodate their employees in high quality space whilst boosting productivity and reducing costs,” said Ben Woodhams, Knight Frank Kenya Managing Director.
Occupier Services is a holistic property-related service aimed at helping clients to identify and align their real estate requirements to the overall business strategy. Services offered under this line include strategic market advisory and consultancy on a company’s existing and future occupational requirements, and management of real estate transactions such as property acquisition and disposal, lease acquisition, lease renewal, lease disposal, lease surrender or realignment and sub-letting.
“Occupier Services is a service line that is dedicated to the client to provide solutions to suit their needs. We are seeing increasing demand for this service as companies look to consolidate office spaces, relocate, and increase efficiency and productivity in the workplace,” Winnie Gachagua, Occupier Services Manager at Knight Frank Kenya, said.
According to Knight Frank’s (Y)OUR SPACE report, real estate is now a strategic priority for occupiers as the workplace represents an additional lever for business leaders in pursuit of competitive advantage.
“In this respect, real estate decisions influence and reinforce an array of business priorities – from talent management, corporate and social responsibility, inclusion and diversity, to the transformation of corporate culture and brand or the restricting of business models in light of rapid technological advances,” the report states.
The report notes that the five themes that will shape future occupational demand across global real estate markets include the productivity push; next-wave technologies, changing corporate models, space-as-a-service model, and mobility and mergers. The report also shows that total occupancy costs for prime office space in Nairobi is approximately US$23.76 per square foot annually.