Mixed use development now gaining popularity

While mixed-use developments are not new, a new trend is gaining currency in commercial real estate around Nairobi, giving a new meaning to the term.

Indeed, in its Global Cities 2015 Report, real estate firm Knight Frank notes that firms are increasingly moving offices to edge-of-central business district (CBD) locations, a trend that is creating new office hubs, with homes and shops following suit.

Traditionally, one high-rise building would have a mix of retail space on the lower floors, office space on the upper floors, and occasionally, some penthouses on the top-most floors.

However, what we are seeing today are properly integrated developments, which are delivering commercial, residential and retail space in far bigger magnitudes, with striking examples such as Two Rivers Mall, The Hub, Garden City, etc. says Mr Ben

Woodhams, the Managing Director of Knight Frank Kenya

The live-work-play lifestyle concept is fast gaining popularity in major cities worldwide, bringing homes, offices, shops and recreational spaces closer to one another, Mr Woodhams adds. 

The concept has been introduced in Nairobi, a market that is learning to embrace the opportunities that come with having offices in a large-format retail environment. These mixed-use formats are designed as city hubs where people can live, work, shop and play in the same location.

“It is a very exciting trend. Such models present opportunities and alternatives for companies in a new kind of office occupation. Nairobi has not had this before and we are showing the market the benefits of having workplaces in a predominantly retail

environment.” says Mr Woodhams.

A fully integrated mixed-use development combines the facets of parking adequacy, convenience and the live-work-play concept. For instance,Two Rivers Mall on Limuru Road, sits on 102 acres and integrates the retail mall with two office towers with a

total of 215,000 square feet, residential apartments, hotels, and recreational space.

Evidently, these new models of mixed-use commercial developments are not in conventional locations. Moreover, while the bulk of office space in the city will remain in the traditional nodes, there are some key benefits for investors and occupiers in this new

model, says Mr Woodhams.                  

 Perhaps the most obvious benefit  is the abundance of parking space.

Companies occupying space in such developments can negotiate to annex parking space in the retail section on weekdays when the number of shoppers is relatively low, compared to weekends. Retailers get the favour returned when shoppers are allowed to

park in the commercial section on weekends, says Mr Woodhams.

“The standard parking ratio for commercial developments is usually two bays per 1,000 square feet. The option of using the retail side in a mixed-use development virtually guarantees unlimited parking space,” says Mr Kevin Wathome, a commercial agent at

Knight Frank Kenya. 

At Two Rivers, for instance, basement parking has 1,500 bays. 

Additionally, when all one needs is within easy reach, there is greater efficiency. For companies, this will translate to higher productivity at work while for employees who live within the developments, it means more time for families and recreation, and less

time in traffic commuting to and from work.

The convenience works for both the employer and employee.