Investors shift focus to refurbishing older commercial buildings, report shows

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Investors are increasingly choosing to renovate older commercial buildings instead of buying new developments, as demand rises for energy-efficient and environmentally sustainable office space.

According to the Knight Frank Kenya Wealth & Investment Trends Report 2026, about 38 percent of respondents said their clients are investing in underperforming commercial properties and upgrading them while retaining their original use.

Knight Frank Africa Research Analyst Boniface Abudho said the commercial property market is undergoing a shift, with investors creating more value by refurbishing existing buildings.

“Commercial property is entering a new phase where value is increasingly created through thoughtful refurbishment,” Abudho said.

“Investors recognise that improving the environmental performance of existing buildings not only extends their useful life but also enhances competitiveness in a market where occupiers are demanding higher quality space,” he added.

The report shows that sustainability has become a major factor in commercial property investment decisions, with 75 percent of respondents identifying renewable energy as a key consideration when evaluating office buildings.

Knight Frank Kenya Chief Executive Officer Mark Dunford said building refurbishment is no longer focused only on improving appearance but has become an important strategy for reducing costs and attracting tenants.

“Refurbishment is no longer simply about aesthetics,” Dunford said.

“It is about reducing operating costs, improving energy efficiency and ensuring buildings remain attractive to tenants and investors in an increasingly competitive market.”

The findings highlight a growing trend in Kenya’s commercial real estate sector, where investors are prioritising modernisation and sustainability to meet changing tenant preferences and improve the long-term value of existing office buildings.