Revenues from commercial offices in Nairobi declined last year compared to the year 2016. According to real estate Company, Cytonn, this is due to the prolonged electioneering period experienced last year.
The report says the office sector softened in 2017 with rental yields declining by 0.1% points to 9.2% from 9.3% in 2016. The best performing sub markets were park-lands and Karen with average rental yields of 9.7% and 9.5%, respectively.
The report noted that with the increase in oversupply and a decline in performance, the commercial office market in Nairobi had a negative outlook investments in the office sector. The report noted that Nairobi remains the regional hub for key drivers in the office sector with the emergence of devolved governments leading to increased need for office spaces.