According to a recent report by global real estate firm Broll Kenya, office space in most of the new buildings in Nairobi’s Upper Hill Nairobi has remained unoccupied for many months after construction was completed.
The report notes that there is a massive oversupply of office space in the region despite being close to Nairobi Central Business District (CBD).
Most of the landlords have now been forced to adjust their rental prices and lease terms in order to stay competitive. Newer buildings have been hit the worst and are really struggling to acquire tenants according to Broll Kenya.
“Some A-grade buildings in the area are now renting the same as B-grade rentals. Interested tenants have shifted focus to Kilimani, Karen and Riverside areas where space offerings are mostly A-grade in nature” reads the report.