Developers should focus on the “long term” for gains in the commercial offices sector, an industry lobby has said.
Kenya Property Developers Association (KPDA) Chief Executive Elizabeth Mwangi-Oluoch said certain locations were experiencing over-development and finding it difficult to get tenants. “Certain locations are experiencing over-development and struggling to achieve historical occupancy percentage rates. However, this is also driven by the general macroeconomic environment, to a certain degree,” she said, adding: “Developers should therefore be geared to the long-term horizon for gains.”
Her comments come in light of an article in last week’s edition of Home & Away that examined the glut in commercial office space.
A recent report said the oversupply would hit 5.8 million square feet by the end of this year, as more mega buildings come up.
Ms Mwangi-Oluoch was, however, optimistic on recovery of the sector, saying it would pick fast with an improved economy. “There will be a snowball effect once the economy improves,” she told Home & Away.
Reacting to the article on oversupply, Fusion Capital, the developers of the 18-storey Flamingo Towers on Mara Road, Upper Hill, said the building was not struggling to find tenants.
Sales and Marketing Manager Sophie Tunu said the Grade A facility was actually mostly occupied, with the other space to be retained by the shareholders.
“Flamingo Towers is not struggling to find tenants. We have achieved an 80 per cent occupancy rate as at December 2019. The shareholders are looking at retaining the remaining space,” she said
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