The east and centrals Africa’s largest city, Nairobi, has grown in real and corporate estate. People are building houses, buying houses and improving in business. There is one thing about malls. They are designed to attract and perfected to impress. The builders have implied the psychology of outer impressions to attract more people to rent.
These malls are located along major roads and strategically to tap large numbers of customers. In Westlands, Sarit, Ukay and Westgate dominate. Along our superhighway TRM had been standing for long before being dwarfed by Garden City. On the ever jammed Ngong road is The Junction, Prestige among others. T-Mall welcomes you to Langata road. Before you decide whether to visit the leafy suburbs of Karen or head to diaspora (Rongai), Galleria is in place to munch your money.
On your way to on Kiambu road there is the Ridgeways while Two Rivers is yet to launch its spaces. Services in these malls are numerically expensive. One must pay for that space. Most business people have feared spending in these places.
Business Daily gave an analysis from one of the largest real estate dealers in Kenya, Knight Frank. Their report indicates that number of spaces in malls are increasing. People are hiring less or opting to share one space.
The other fear that retailers may have is performance. With the increasing number of rental spaces, well distributed in the capital, the market could reduce. It is not like the early 2000s when Sarit was the only hypermarket in Westlands.
This reduced hiring may mean two things; first the rent may reduce to enable more people to rent. Second, building of more malls might stop for fear of poor performance. It is time to rethink on this to avoid an explosion of this time bomb.