Warehouse construction is the next big target

Posted on :Tuesday , 13th March 2018

 Developers are currently targeting the warehouse industry in Kenya and somehow moving away from the crowded construction of residential, retail and office space.

With the construction industry in Kenya witnessing a boom in the residential, retail and office space, developers are currently targeting the warehouse industry as a new avenue to expand.

Tilisi Developments Limited Co- CEO Kavit Shah stated in reports that there has been a slow growth in the warehousing industry in Kenya but developers have now started focusing on that direction because of the high demand that is outstripping supply.

Kenya has experienced exponential growth in various sectors of the economy and population. Yet, this has been in contrast to the slow growth of quality warehousing to support and sustain it. This has led to the country experiencing a demand that surpasses supply. 

He further explained that, this notion is however shifting with the emergence of new warehouses in Nairobi, for instance, the case of Africa Logistics Properties, which plans to develop Kenya’s first Grade-A logistics warehousing at two sites in Nairobi’s neighborhood.

Also, there is ALP North, a 50,000-square metre logistics and distribution complex consisting of three separate warehouses which sits on 22 acres Tatu Industrial Park in northern Nairobi.

Then there is ALP West, another project in Tilisi on the Nairobi-Limuru Highway which sits on a 49-acre site. It is anticipated to house a 100,000-square metre logistics and distribution warehousing complex. ALP will apply a “design, construct and manage” business model so as to retain quality in the warehouses.

According to a study by JLL– a global commercial real estate firm, the demand for industrial space in East Africa will from 2018 increase faster as compared to other countries in Africa. Additionally, the report States that the demand for industrial space in Kenya will probably grow by 5.1% per year.

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