Key Investment Points

• Office yields: 7.2-9.2% across major cities
• Residential yields: 6.5-8.0% in growth markets
• Institutional preference for predictable income
• Yield premium of 1.5-2.0% for prime offices

Institutional Analysis

Prime office yields in Nairobi (7.2-8.5%) and Lagos (7.8-9.2%) demonstrate superior risk-adjusted returns compared to residential assets (6.5-8.0%). Institutional office buildings benefit from longer leases, creditworthy tenants, and lower vacancy rates. While residential developments offer higher capital growth potential in growth markets like Accra and Kigali, institutional offices provide more predictable income streams and lower volatility. The yield premium for institutional office space has widened to 1.5-2.0% over residential assets, making offices increasingly attractive for pension funds and sovereign wealth funds seeking stable, income-focused investments.

Key Investment Points

• 25% annual capacity growth in cold storage
• Warehousing yields: 8.5-10.5%
• Cold storage premium: 1.0-1.5%
• Long-term leases: 10-15 years

Institutional Analysis

East Africa's warehousing sector is experiencing unprecedented growth, with cold storage capacity expanding at 25% annually. E-commerce giants and food distributors are driving demand for modern facilities with advanced inventory management systems. Prime warehousing yields range from 8.5-10.5%, with cold storage commanding premiums of 1.0-1.5%. Strategic locations near ports (Mombasa, Dar es Salaam) and major cities offer superior logistics advantages. Institutional investors are increasingly viewing warehousing as a defensive asset class, with long-term leases (10-15 years) and inflation-linked rent escalations providing protection against macroeconomic volatility.

Key Investment Points

• Data center yields: 7.5-9.0%
• Contract lengths: 15-20 years
• Creditworthy tenants: tech and fintech
• Defensive characteristics in downturns

Institutional Analysis

Africa's data center market is poised for explosive growth, with demand driven by digital transformation, fintech expansion, and cloud computing adoption. Prime data centers in Nairobi and Johannesburg achieve yields of 7.5-9.0%, with hyperscale facilities commanding premiums. The sector benefits from long-term contracts (15-20 years) with creditworthy tenants including tech giants and financial institutions. Power reliability, fiber connectivity, and regulatory stability are key success factors. Institutional investors view data centers as uncorrelated assets with defensive characteristics, offering protection during economic downturns while participating in Africa's digital growth story.

Key Investment Points

• Occupancy rates: 95%+
• Medical yields: 7.0-8.5%
• Demographic tailwinds driving demand
• Defensive asset class characteristics

Institutional Analysis

Medical real estate represents Africa's most resilient commercial asset class, with hospital and clinic portfolios achieving occupancy rates above 95%. Prime medical yields range from 7.0-8.5%, with specialty facilities (cancer centers, cardiac units) commanding premiums. The sector benefits from demographic trends, increasing healthcare spending, and regulatory support for private healthcare development. Institutional investors appreciate the defensive nature of healthcare assets, with stable cash flows, long-term leases, and correlation with GDP growth rather than business cycles. Private equity and REITs are increasingly targeting medical real estate as a core holding in African portfolios.

Key Investment Points

• Rental growth: 8-12% annually
• Retail yields: 7.5-9.5%
• Experiential premium components
• Middle-class income growth driving demand

Institutional Analysis

African retail is undergoing a transformation from traditional necessity-based shopping to experiential, lifestyle-oriented destinations. Modern malls in Nairobi, Lagos, and Johannesburg incorporate entertainment, dining, and wellness facilities, achieving rental growth of 8-12% annually. Prime retail yields range from 7.5-9.5%, with experiential components commanding significant premiums. The sector benefits from rising middle-class incomes, urbanization trends, and changing consumer preferences. Institutional investors are increasingly viewing retail as a growth asset class, with development focus shifting from pure retail to mixed-use experiential centers that offer resilience across economic cycles.