Let’s break down the potential investment opportunity of the building on Moi Avenue in Nairobi CBD.
Key Details:
– Location: Nairobi CBD, Moi Avenue
– Monthly Income: KES 10 million
– Annual Income: KES 120 million
– Annual Rent Increment: 5%
– Selling Price: KES 1billion
Potential Investment Analysis:
To determine if this is a good investment, we can calculate the gross yield:
Gross Yield = Annual Rental Income / Property Value
= KES 120,000,000 / KES 1,500,000,000
= 0.08 or 8%
This yield seems reasonable for a commercial property in Nairobi CBD.
Comparable Properties:
Some notable buildings in the area include ¹ ² ³:
– Pioneer Moi Avenue: A commercial building with office spaces and shops, housing companies like Tuskys Supermarket and Pioneer Assurance Company Ltd.
– Stanbank House: A high-profile building with offices and amenities like lifts, 24-hour security, and ample parking, rented at KES 60 per square foot per month.
– Iconic Business Plaza: A storey building with comput
