This will happen in Kenya too CtrlC+V

Business
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Wall street journal

Brazil—Real-estate developers in Brazil nearly doubled the country’s shopping-center space over the past decade in hopes of collecting high rents from retailers catering to the nation’s fast-expanding middle class.

Instead, many got clobbered by the country’s economic downturn.

Today, some parts of Brazil, like this city of 600,000 residents located about 60 miles west of São Paulo, are pockmarked by “ghost malls” with high vacancy rates, low traffic and anemic sales.


NY Times

Real estate economist Chistopher Zahas speaking about the Owing Mills dead mall: The fundamental problem for malls is that the country (USA) is over retailed. A long boom in building retail space has left United States with many more stores than it needs.

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I saw the same in Heidelberg SA. Its now a ghost town.

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China to.

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The developers don’t really care. They are parking laundered money. If you think we are crazy here, try Zambia. Lusaka has like 2 malls per square Km.

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May be this will present an opportunity for distressed investing.

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There is a possibility that it might happen but it’s going to take some time…places like githurai are turning out to be lucrative for real estate investors… huko landlord are eating big time mpaka company kama cytonn investments are running towards direction.

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If retailers won’t be coming by why not convert them to office spaces with minimal square feet? Ghost malls won’t be seen here in a long while.

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There will also be a glut of office space. Check out the buildings that are coming up.

  1. UAP towers-33 floors
  2. Britam towers- 31 floors
  3. Prism towers- 34 floors
  4. CPF towers
  5. Greenfield tower- 35 floors
  6. Alexander Forbes Tower- 20 floors
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Lakini watu wa Garden City wanachomeka. That mall has visitors only on weekends.

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Not confirmed yet but word out there is that at Garden City Java is the only tenant breaking even, traffic at the mall is way below par and by now one would have expected that the apartments at the establishment would now be at maximum occupancy yet it’s hardly at 30%

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Wonder how long Deacons will sustain those shops

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The problem ailing Kenyan malls aside from the fact that the middle class they were targeting is not as ebullient as they thought, is poor access via roadways. The stress of driving to and from malls mostly due to traffic is simply not worth the experience.

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Yea i was there on thursday and things are bad i wonder how they make the rent…i bought yorgurt a certain shop near java and the stuff could not stop thanking me…there is also the juja mall this one we will have to wait and see the only saving grace will be the tuskys supermarket. The one in k.u is bound flop.

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Wonder what the sales of Game stores are seems Kenyans window shop there then shop downstairs at Nakumatt

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In upper hill i know of 4 buildings that were completed 3yrs ago that are yet to be occupied…the developers want companies that rent an entire floor not withstanding thier unreasonable rates.

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A good example of a mall that has poor access is KU mall

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Already is, Uchumi ndio walikua waingie hapo.

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Another one is coming up in kimbo luck of adequate parking space and accessibility is going to be it’s main undoing but I think it’s has potential.

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On saturday I was at Garden city and true, those apartments are quite empty. What amazed me was that even the traffic was low yet it was an end month weekend. I think tenants in TRM may be making more sales than Garden city

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