Older Commercial Buildings Find New Purpose as Investors Prioritise Sustainable Refurbishment as more property investors in Kenya choose to improve existing buildings instead of constructing new ones, according to Knight Frank Kenya’s Wealth & Investment Trends Report 2026.
The report shows that investors are increasingly upgrading older office and commercial buildings with energy-saving features, renewable energy systems, and other environmentally friendly improvements. This shift is being driven by growing interest in environmental, social and governance (ESG) practices, which are becoming an important part of investment decisions.
About 38% of respondents said their clients are buying older commercial properties that are not performing well and renovating them while keeping their original purpose. Rather than replacing these buildings, investors are improving them to increase their value, reduce running costs, and make them more attractive to tenants.
Boniface Abudho, Research Analyst at Knight Frank Africa, said commercial real estate is entering a new phase where upgrading existing buildings creates more value.
“Investors understand that improving the environmental performance of older buildings helps extend their lifespan while making them more competitive in a market where businesses want high-quality, modern office space,” he said.
The report also found that sustainability is now a major priority for commercial property investors. Around 75% of respondents said renewable energy is one of the most important factors they consider before investing in a property. Green building certifications are also becoming more valuable because they show that a building meets modern environmental standards.
Mark Dunford, CEO of Knight Frank Kenya, said refurbishment is about much more than improving a building’s appearance.
“Today’s investors want buildings that are energy efficient, cost less to operate, and continue attracting quality tenants. Sustainable refurbishment helps achieve all of these goals,” he said.
Knight Frank says owners of older commercial buildings have a great opportunity to increase the value of their properties by upgrading energy systems, installing smarter building management technology, and improving facilities for tenants. These improvements can help buildings remain competitive while supporting sustainability goals.
Dunford added that buildings that adapt to changing tenant expectations will be better positioned for long-term success.
“The buildings that will perform best in the future are those that continue to evolve. Investors who improve their existing properties today are preparing for stronger returns tomorrow,” he said.
Abudho said Kenya’s commercial property market is changing, with refurbishment becoming an increasingly attractive investment strategy.
“Sustainable refurbishment shows that investors can achieve both environmental benefits and good financial returns without changing the original purpose of a building,” he said.
The Wealth & Investment Trends Report 2026 concludes that ESG principles are playing a bigger role in where investors put their money, encouraging a commercial property market that is more resilient, energy efficient, and prepared for the future.