Nairobi tops African peers in robust prime office performance

Africa’s office market is becoming increasingly polarised between modern, well-managed Grade A buildings and ageing secondary stock, according to Knight Frank’s Africa Offices Market Dashboard – Half-year 2026 report.

The report, which tracks prime office performance across selected African cities, finds that occupier demand is increasingly concentrated in quality, operationally resilient buildings, supporting stronger occupancy and rental resilience across leading markets.

According to the report, Nairobi recorded one of the greatest improvements during the review period, with average Grade A office occupancy rising from 81.5 per cent in December 2025 to 84.8per cent in June 2026.

Prime rents remained stable at about Sh1,684 ($13) per square metre (sqm) per month, supported by limited new Grade A supply and continued absorption of existing quality stock.

Ben Woodhams, partner, Africa Desk at Knight Frank, explains that while prime office rents remained broadly stable across most markets, Grade A occupancy strengthened in several leading locations as tenants focused their demand on buildings offering quality, higher sustainability credentials, reliable services and optimum operational efficiency.

A similar pattern is evident in Kampala, where Grade A office occupancy reached about 87 per cent, compared with 83 per cent for Grade B offices.

Prime rents remained stable at around (Sh2,202) US$17 per sqm per month, while older buildings increasingly rely on rent concessions and fit-out contributions to remain competitive.

Dar es Salaam recorded about 80 per cent Grade A occupancy, with prime rents holding at around (Sh1.943) $15 per sqm per month and average yields of approximately 9 per cent.

In Lusaka, Grade A offices achieved rents of about Sh2,073- 2,332 ($16 to $18) per sqm per month, with prime occupancy averaging 70–80 per cent depending on location, building quality and infrastructure. Modern buildings in Kabulonga, Rhodes Park, Mass Media and parts of Longacres continue to outperform ageing central business district stock.

“We are seeing a structural repricing of what occupiers consider valuable office space,” Boniface Abudho, Africa Research Analyst at Knight Frank, said.

“Quality, reliability, flexibility and operational efficiency are increasingly determining leasing decisions, creating a clear divide between buildings that meet evolving occupier requirements and those that do not.”

According to Knight Frank, beyond the traditional landlord-tenant model, flexibility is emerging as one of the defining features of Africa’s evolving office market.

In Egypt, the New Cairo and Sheikh Zayed office markets remain landlord-favourable, supported by constrained institutional-grade supply and demand from multinational occupiers.

 The lease of approximately 16,000 sqm by IWG Spaces at The Ark Business Park illustrates the scale at which flexible workspace operators are now participating in the institutional office market.

“In Nairobi, IWG expanded its presence during the period through three new centres at Nairobi Business Park along Ngong Road, 1 Park Avenue in Parklands and I&M Tower in Nairobi’s CBD, reflecting sustained demand for agile workplace solutions,” Knight Frank report.

In Tanzania and Uganda, serviced offices are also gaining traction as occupiers seek shorter commitments, lower upfront costs and the ability to scale their footprints according to business requirements.

The Knight Frank report reveals that across several markets, occupiers are consolidating office footprints and favouring smaller, more efficient layouts rather than large corporate headquarters.

“In Lusaka, demand is concentrated around office suites of approximately 50–350 sqm, while demand for larger floors of 500–1,500 sqm remains limited,” Knight Frank report.

Corporates in Malawi, are increasingly prioritising cost efficiency and smaller offices. The rationalisation of office footprints by NGOs and other organisations has contributed to softer demand for larger-format offices in Lilongwe, where vacancy rates are estimated at 15–25 per cent.

According to Knight Frank, occupiers are also increasingly looking beyond traditional measures of office quality. Reliable backup power, adequate parking, modern specifications, professional property management, security and tenant amenities are emerging as decisive factors in leasing decisions.

For instance, in Cairo, parking availability has become an increasingly important consideration as traditional allocations of approximately one parking bay per 100 sqm prove inadequate in high-density business districts. At the same time, in Kampala and Lusaka, reliable power supply and building management are key differentiators between high-performing Grade A buildings and ageing stock.

The report also highlights that, across several markets, occupiers are shifting from congested CBDs to mixed-use and suburban nodes that offer accessibility, parking, and integrated amenities.

In Zimbabwe, businesses are increasingly moving towards lower-density locations that provide better accessibility, security, flexibility and workplace environments.

In Durban, South Africa, demand remains concentrated in nodes such as Umhlanga and La Lucia, where modern, secure and mixed-use environments continue to attract occupiers.