Nairobi prime office demand rises as occupancy hits 84.88% in H1 2026
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Knight Frank says Nairobi's prime office occupancy rose 4.05 percentage points to 84.88% in the first half of 2026, driven by continued absorption amid limited new supply.
Demand for prime offices and residential property in Nairobi increased during the first half of 2026, according to property consultancy Knight Frank.
Nairobi's prime office occupancy rate rose by 4.05 percent to 84.88 percent in the six months to June 2026 compared with a similar period last year.
Knight Frank attributed the improvement to continued absorption of existing prime office space amid limited new supply, adding that a shortage of large, high-quality Grade A office space had forced some large occupiers to extend existing leases, while others committed to upcoming developments.
Mark Dunford, chief executive of Knight Frank Kenya, said the improvement in prime office occupancy is an important signal for Nairobi's commercial property market, describing a clear flight to quality as occupiers focus on buildings that offer the right specifications.
However, the Grade B and C office market continues to favour occupiers, with high vacancies in secondary stock allowing tenants to negotiate favourable lease terms and move into higher-quality buildings without significant cost increases.
"While the broader office market remains competitive for landlords, the shortage of large prime spaces is creating a more balanced environment at the top end of the market," Dunford added.