Commercial Projects
Nairobi Mall Offers Big Incentive to Attract Tenants
Rosslyn Riviera Mall has slashed rents by half to woo new renters.
As Nairobi’s commercial real estate market continues to reel under a glut of shopping malls, some property owners are going to extreme lengths to attract and retain tenants.
From extending rent-free fit-out periods of up to three months to offering free parking for shoppers visiting specific premises, mall proprietors are devising new ways to keep their spaces occupied amid shrinking demand from retailers.
Rosslyn Riviera Mall, which sits on 4.5 acres in Rosslyn, Limuru Road, has for example announced unprecedented measures to attract new tenants as it struggles to fill its spaces.
According to its agent, Knight Frank Kenya, tenants who enroll by December 31 will be exempted from paying full rents for the next six months after which they will pay only half of the rent for the six months that follow.
The Business Daily on Monday quoted Ashmi Shah, retail portfolio manager at Knight Frank Kenya, as saying “the discount is available to retailers who will sign up within the short window, to enrich Rosslyn Riviera Mall’s tenant-mix and shopper experience.”
Rents for Rosslyn Riviera Mall range between Sh180 and Sh275 per square foot.
The Sh2.9 billion mall opened in January 2017, adding 116,000 square feet of retail space in the market targeted at shops, restaurants, and entertainment and wellness outlets.
The mall targets the residents of Rosslyn, Muthaiga, Runda, Nyali, Gigiri, and Rwaka who may find it convenient to shop, dine, meet or unwind at the facility.
RELATED: Mall Tenants Now Play Hardball in Lease Talks
Rosslyn Riviera Mall has attracted several high-profile tenants including the fast-expanding Chandarana Supermarket, which is its anchor tenant, Java House, Planet Yoghurt, Nairobi Hospital, 360 Degrees Pizza, and News Café, among others.
According to Mauritius-based multinational Grit Real Estate Income Group, which holds substantial interests in the Kenya real estate market, shopping malls in Nairobi are facing the greatest pressure to slash their lease fees as more properties enter the market.
“Even though the market has seen upward movement in rental levels in recent years, attributable to increased development quality and international retailers entering the local market, there is likely to be downward pressure in rentals as the local retail supply reaches saturation,” Grit Real Estate said in a review of the local commercial property market.
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