Occupancy levels in Nairobi’s prime offices are projected to climb further in 2026, building on momentum from last year and driven by the limited supply of such units.
The prime category refers to Grade A offices, which are in key business locations, feature high-quality contemporary designs, and are equipped with cutting-edge facilities and amenities.
Real estate management firm Knight Frank said the expected rise in occupancy is likely to trigger a slight increase in rents in key locations such as Westlands and Upper Hill.
Over the years, these areas have been primarily targeted by developers for new projects to complement the Nairobi Central Business District, where accessibility and the supply of Grade A offices have been limited.
‘In 2026, prime office occupancy is expected to continue rising due to limited availability of high-quality stock, placing mild upward pressure on rents in key nodes such as Westlands and Upper Hill, although the broader market is likely to remain competitive and tenant-friendly,’ the firm said.
An increase in prime office occupancy would build on momentum from 2025, when occupancy rates in Nairobi climbed from 77.71 percent in June to 81.58 percent by December, marking a 4.98 percent increase.
‘This absorption was largely fuelled by strong tenant uptake in the high-quality developments completed in late 2024, such as Purple Tower and The Mandrake, underscoring a persistent ‘flight to quality’ Knight Frank said.
‘Rents for prime space remained stable at $1.20 (Sh154.82) per square foot per month, indicating a market finding equilibrium between improved demand and available stock,’ it added.