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Sector Performance

Comprehensive analysis of real estate sector performance across office, retail, industrial, and residential markets in Kenya.

Real Estate Sector Overview

Office Sector

Grade A office buildings in prime CBD locations

+8.5%
YoY Growth

Retail Sector

Shopping centers and retail developments

+12.2%
YoY Growth

Industrial Sector

Warehouses and logistics facilities

+15.8%
YoY Growth

Overall Market

Total commercial real estate market

+11.7%
YoY Growth

Office Sector Performance

Nairobi's office market continues to show strong fundamentals driven by business process outsourcing growth and multinational company expansions. Prime CBD locations maintain high occupancy rates with limited new supply.

95% average occupancy rate
8-12% rental growth annually
Limited new supply pipeline

Office Market Metrics

Prime CBD Rent:$4.50/sqft/month
Westlands Prime:$3.80/sqft/month
Average Vacancy:5.2%
New Supply (2025):450,000 sqft

Retail Market Dynamics

Prime GLA Rent:$25/sqft/month
Secondary GLA:$15/sqft/month
Occupancy Rate:92%
E-commerce Impact:Growing

Retail Sector Trends

The retail sector is experiencing robust growth driven by Nairobi's expanding middle class and increasing consumer spending. Modern shopping centers with entertainment and dining components are particularly popular.

Growing middle-class consumer base
15% annual retail sales growth
Mixed-use developments gaining popularity

Industrial & Logistics Sector

Key Performance Indicators

Prime Warehouse Rent:$0.35/sqft/month
Logistics Park Rent:$0.45/sqft/month
Vacancy Rate:3.8%
New Supply Pipeline:2.1M sqft (2025)

Growth Drivers

E-commerce Boom

Rapid growth in online retail driving demand for fulfillment centers

Manufacturing Revival

Increasing local manufacturing and light industry operations

Logistics Hubs

Kenya's position as East Africa's logistics gateway

Sector Outlook 2025

Office
Stable growth with limited supply
+6-8% rental growth
Retail
Strong consumer demand
+10-12% growth
Industrial
Supply chain transformation
+12-15% growth

Investment Recommendations by Sector

Office Investments

Focus on Grade A buildings in established CBD locations with long-term leases to creditworthy tenants.

High Confidence

Retail Opportunities

Target modern shopping centers with diversified tenant mix and entertainment components.

Strong Potential

Industrial Focus

Prioritize last-mile distribution centers and modern warehouses near major transport corridors.

Excellent Growth

Sector-Specific Investment Strategies

Get detailed analysis of specific real estate sectors and investment opportunities tailored to your objectives.