Classy office features open new rivalry front
The office market was one of the hardest-hit by the Covid-19 menace as workers were forced to work from home.
What you need to know:
- The office market was one of the hardest-hit by the Covid-19 menace as workers were forced to work from home.
- Office upgrades will be critical for investors in Nairobi because the number of new units has outstripped the surge in demand.
The office space market in Kenya is experiencing a major shake-up as investors compete to attract the eye of choosy clients through alluring features and structural designs.
Real estate consultancy firm Knight Frank said although demand for offices is on recovery, design and structural appeal of such units has become critical because workers have an option to work from home or on the go.
“The sector will see structural change as occupiers take flight to quality, seeking spaces that are compelling to a workforce that has greater choice in where they work,” the firm said in its newly released wealth report for this year.
“Amenity rich offerings will be a focus. The office will become a centre for collaboration and innovation and this will be reflected in the configuration and utilisation of space. There is fledgling evidence of these changes already, with much more to come as we move from pandemic to endemic and occupiers lift the brakes on their property decisions accordingly” Knight Frank said.
The office market was one of the hardest-hit by the Covid-19 menace as workers were forced to work from home to curb the spread of the virus as well as comply with movement restrictions.
“When the pandemic first hit Kenya, the serviced office sector was hit hardest due to short-term licences, so occupiers simply opted to work from home,” Mr Ben Woodhams, managing director of Knight Frank, Kenya said.
High-grade office space
“Now, as the sector recovers, it is that flexibility that occupiers want, and so we are seeing a huge growth in occupation by serviced offices,” he added.
Office upgrades will be critical for investors in Nairobi because the number of new units has outstripped the surge in demand — a situation that means that occupancy rates would be driven by value-added features.
Nairobi’s skyline has recently been altered by completion of high-grade office space including Global Trade Centre, Hazina Trade Center, Principle Place, The Convex, and Riverside Square.
The Piano Westlands, One Principal Place, Orbit II, PTA Complex, The Cube, and Karen Green are expected to be completed this year.
A survey released last month by Knight Frank said the new office will dampen occupancy rates that have risen from 73 per cent in the first half of 2021 to 78 per cent in the second half as the economy reopened.
“We expect that the occupancy rates will fall because of the large amount of space released in the market towards the end of 2022,” Knight Frank said in a market update.
It said in addition, the change in working patterns and adverse economic conditions have resulted in several organisations downsizing.
