How to Buy a Retail Property: A Strategic Guide for Investors

Investing in retail property requires a different mindset than residential real estate. In Kenya, the shift from traditional street-front shops to organized shopping malls and mixed-use developments has changed the landscape for 2025.

1. Location and Micro-Market Analysis

For retail, location isn't just about the neighborhood; it's about the specific side of the street. Foot traffic (footfall) and visibility are the lifeblood of retail success.

2. Understanding Tenant Mix

A successful retail investment depends on the "Anchor Tenant"—usually a major supermarket chain like Carrefour or Naivas. This anchor draws the crowd that feeds the smaller specialty stores.

3. Due Diligence Specifics

• Zoning: Ensure the land is registered for commercial use.
• Loading Zones: Check if the property has adequate space for delivery trucks.
• Parking Ratio: Aim for at least 4 parking slots per 1,000 sq. ft. of retail space.