Commercial property is making use of properties to generate revenue as a business or an entity that makes use of a space for its interest. The space can be essentially rented out as a retail, an office, storage or industrial space for business functions only as opposed to living or provision of accommodation services.
Kikuyu Town is a satellite town in Nairobi, Kenya located nearly 20 Kilometers Northwest of Nairobi CBD. The town grew from a settlement of colonial missionaries. According to the 2019 census Statistics by KNBS, Kikuyu had an total population of 187,122. Kikuyu town has since then seen tremendous growth in its infrastructure including research- KEFRI and KETRI and academic institutions such as the UoN– Kikuyu Campus.
The Sky Rocketing Commercial Developments in Kikuyu Town
A report on Kikuyu Commercial Real Estate Market
Kikuyu town has since seen tremendous growth in the retail sector with a high retail occupancy rate of 92% according to a research note V4 by Cytonn. These retail spaces are majorly middle scale super markets, wholesalers and shops centrally located within the town. Office space occupation on the other hand is below the median mark rate of 42%. Majority of the offices being self managed e.g., Law firms, Advocates, Surveyors and property agencies.
However, the rate of infrastructural growth is quite promising as now completed Southern by pass crosses through the town which has significantly boosted business being set up. The main challenges that developers should consider improving are inter link roads, proper drainage and garbage disposal and improving the security of the area.
Case study of an office and retail space at the heart of Kikuyu Town
Muchane Plaza is a commercial hub located along the ever buzzling Kikuyu- Nderi Road. The premises faces the kikuyu railway station and oversees the wider greenery to the far Ngong hills. The premise is 5 floors high comprising a total of 25 units with the smallest measuring about 192 sqft to the largest measuring 677 sqft on the ground floor.
The rates at the property is from as low as Kes. 85 per square feet to Kes. 110/sqft. This shows the high demand for small scale retail spaces with the target market being small offices, retail stores and service outlets such as boutiques, film studios and cyber cafe’s.