Commercial Properties With Good ROI in Kenya
Developing a commercial property in Kenya does not always have to mean putting up a large office block, shopping mall or apartment complex. For many property owners, the more practical opportunity may be in smaller, purpose-built spaces that respond to everyday demand and can begin generating income without requiring years of construction and occupancy.
The strongest opportunities are often linked to what people already do: eat, work, meet, store merchandise/valuables, celebrate, trade, do soft labour and spend their free time. We have sampled a few business cases worthy to explore.
Pop-Up Restaurants Near Universities, Work places and Social Gatherings
Such areas have a large and relatively predictable customer base. The targets need affordable food, social spaces and convenient services close to where they study and live. Small restaurant units can be occupied by different food operators. The model works best where pedestrian traffic is already established and rents are matched to what they can realistically afford.
Warehousing and Logistics Spaces Along Major Routes
Kenya’s road network supports a growing movement of agricultural produce, consumer goods, construction materials and other products between towns and major urban centres.
Small and medium-sized warehouses located along major highways can serve traders, distributors, online businesses and logistics companies that need temporary or permanent storage, all with a good access, adequate parking and loading space and at an affordable price being balanced by the busy traffic.
Meeting and Social Spaces for Working Professionals
Purpose-built spaces can provide private rooms, small lounges, outdoor seating and entertainment areas where professionals can simply spend time away from the office to detox. Can be a dancing parlay, wellness spot etc
There is also a market for spaces designed around social occasions such as dates. Cinema rooms, private viewing areas and compact entertainment lounges can be incorporated where the local population can support the pricing. i.e The property is designed around short stays and repeated bookings rather than relying solely on long-term tenants.
Open Gardens and Event Spaces
Weddings, ruracio ceremonies and social gatherings including team building continue to require suitable venues.
A well-drained site with landscaping, sanitation, parking and other basic event infrastructure can become a commercial venue. And even better when custom design to match the specific occasion.
Co-Working Spaces in Accessible Locations
Co-working does not necessarily mean expensive offices in the centre of Nairobi. A smaller facility in a strategically accessible location can provide desks, meeting rooms, reliable internet, printing facilities and private work areas for consultants, freelancers, small companies and remote workers.
The location is important. A space that can be reached conveniently from several surrounding neighbourhoods and have low operational costs to make it affordable.
Art Studios and Exhibition Spaces
Kenya has a growing community of artists, designers, photographers, craftspeople and other creatives who require places to work, display and sell their work.
Such studios can be custom built to suit respective genres and even host events as we see the trend worldwide in fashion, craft and architecture.
Serviced Workshops for Youth-Led SMEs
Small workshops can serve mechanics, fabricators, carpenters, furniture makers, electronics technicians, repair businesses and other trades. Instead of each entrepreneur having to acquire land and construct a workshop, a property owner can provide serviced spaces that can be rented individually. This includes providing access to electricity, water, security, waste management and built in equipment.
All in One
There is also an opportunity to combine complementary businesses into one destination. This spreads rental income across several tenants and reduce dependence on a single commercial activity by naturally attracting customers to the same location.
What starts as a park and chill spot for bachelors, develops to have a causal dining area for a family dining experience and recreational playground for the children. Salon and spa services follow for the parents. Families could park once, access several services and spend several hours at the property.
In conclusion, the idea alone does not create a good return. Such opportunities are often found by identifying an existing activity and providing a better, more convenient place for people to do it.
The strongest opportunities are often linked to what people already do: eat, work, meet, store merchandise/valuables, celebrate, trade, do soft labour and spend their free time.
For more information, reach out to us via info@rickfes.co.ke
At Rickfes Construction Ltd., we help local, diaspora and foreign investors identify, assess and structure practical commercial property opportunities in Kenya and East Africa. We help evaluate the market, development potential, costs and appropriate property model before moving towards implementation.
