Leading property portal looks at the factors to consider when venturing into commercial properties
The commercial space in the capital of East Africa’s economic hub Nairobi, has been flooded as many developers are looking into tapping into market. Whether it is for renting or buying, the commercial space has experienced a boom in the capital.
With Kenya attaining a middle income status the push for businesses to set up base in the country will increase thus further pushing the commercial property market in the country.ass="ampforwp-incontent-ad ampforwp-incontent-ad1" type="adsense"data-loading-strategy="prefer-viewability-over-views" width="100vw" height=320 data-ad-client="pub-5872356600411723" data-ad-slot="" data-auto-format="rspv" data-full-width>
Lamudi Kenya Managing Director Dan Karua says, “With the glut created in the office space, due to the on-going infrastructural developments, mineral explorations and urbanization, one needs to tread carefully into this market.”
Dan added that although commercial properties have higher returns as compared to residential properties, one needs to be guided before pursuing the venture.
Cost implications; The developer needs to calculate the costs of construction as offices are more expensive to put up as compared to residential properties. You also have to consider the building design itself as commercial building are graded as A, B and C. Grade A being the highest charges rents higher so one needs to consider on the location of the commercial office space to ensure it get the right market. Lack of proper infrastructure and parking are some of the hindrances for high occupancy rates.
Rental or sell; This is a big question that you need to ask; whether you will be renting or sell the property. As the push for businesses to own premises increase, the economic implications on it become far-fetched for many of them. As renting seems a viable option for most businesses one can incorporate the two to ensure you are cushioned and give the business an option.
Future expectations; The business community is always dynamic and ever-changing. Therefore, you need to prepare yourself for the changes in operations of the businesses. This will give you ground and be able to attract more businesses in addition to the technological innovations that come with it.
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