Huge investment opportunities for prime warehouses in Nairobi
Property developers in Kenya are currently experiencing a warehouse construction boom. This is due to the increase of demand for prime logistics and storage space. The demand for industrial space in East Africa has rapidly increased faster as compared to other countries in Africa; this is according to a study by JLL– a global commercial real estate firm. The reason behind this is the high growth rate experienced in Kenya.
The reports further states that the demand for industrial space in Kenya will probably grow by 5.1% per year. This will mean that international logistics companies launching operations in Kenya will find themselves competing for vacant spaces. Moreover, Britam Asset Manager also assert to the same report that there will be a boom in Kenya. They further said that multinationals setting up in Kenya are mostly seeking Grade A warehouses.
“The demand for logistics hubs will continue to grow as companies shift from ownership of warehouses to concentrate on their core businesses in a bid to cut costs and boost efficiency,” said Britam. Commonly, most warehouses in Kenya are situated in Mombasa, Nairobi and Kisumu with major nodes situated on Mombasa road, industrial area and Baba Dogo.
The warehousing industry in Kenya is registering peak demand from shippers, industry players have said. The shippers require the facilities for temporary storage before distribution or onward transit to neighbouring countries amid a growing interest in Kenya as a business hub. According to Mr Kipturgo Kenya’s unique geographical position has made it a key transit point for cargo destined for the local market as well as into the region.
Godowns and Indusrial warehouses are one of the Dunhill Consulting strong market segment. We serve a wide range of clients in sectors of manufacturing, storage and productions in area such as Mombasa Road, Athi River, Embakasi, Babandogo, Kikuyu and Industrial area.