Johannesburg ($12/sqft, 16.2% vacancy) and Nairobi ($10/sqft, 21.4% vacancy) compete on different axes: Johannesburg on talent depth and Nairobi on rent and tax.
Johannesburg ($12/sqft, 16.2% vacancy) and Nairobi ($10/sqft, 21.4% vacancy) compete on different axes: Johannesburg on talent depth and Nairobi on rent and tax.
| Metric | Johannesburg | Nairobi |
|---|---|---|
| Region | EMEA | EMEA |
| Country | South Africa | Kenya |
| Class A rent (USD/sqft/yr) | $12 | $10 |
| Class A rent (local) | 220 ZAR | 1300 KES |
| Vacancy | 16.2% | 21.4% |
| Trend | flat | flat |
| Prime yield | 9.4% | 9.8% |
| Premium flex / seat / month (USD) | $320 | $320 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 27% | 30% |
| Metric | Johannesburg | Nairobi |
|---|---|---|
| Typical term | 5 yrs | 5 yrs |
| Typical rent-free | 6 mos | 6 mos |
| Lease norms | Net leases. 5-7 year terms with escalation clauses. Free rent of 4-8 months and TI of ZAR 800-1,500/sqm typical on a 5-year deal. | Net leases. 5-6 year terms with escalation clauses. Free rent of 4-8 months and TI of KES 4,000-7,000/sqm typical. |
| Tax note | 27% South African corporate income tax. SEZ incentives available. Dividends withholding tax 20%. | 30% Kenyan corporate income tax. EPZ (Export Processing Zone) and SEZ incentives available. Significant withholding taxes on cross-border payments. |
| Metric | Johannesburg | Nairobi |
|---|---|---|
| Talent index (0–100) | 78 | 72 |
| Talent note | Deep mining, banking, and multinational African operations talent. Strong English-language professional base; multilingual workforce. Strong feed from Wits, UCT, and Stellenbosch. | Deep mobile money / fintech, NGO, and African operations talent. Strong English and Swahili bilingual professional base. Strong feed from University of Nairobi, Strathmore, and JKUAT. |
Johannesburg: Gautrain rapid rail (Sandton, OR Tambo Airport, Pretoria); Metrorail (limited); BRT (Rea Vaya). Heavy car dependency. OR Tambo International Airport on Gautrain.
Nairobi: BRT under construction; Standard Gauge Railway connects to Mombasa. Jomo Kenyatta International Airport (NBO) bus-served. Nairobi Expressway connects Westlands to JKIA. Heavy car dependency.
Nairobi is the cheaper Class A market on a USD basis.
Johannesburg has the deeper talent index (78/100 vs 72/100).
Johannesburg has the lower headline corporate tax (27% vs 30%). Local incentives can change the effective rate materially.
Johannesburg typical term is 5 years with 6 months free; Nairobi runs 5 years with 6 months free.
Johannesburg: Gautrain rapid rail (Sandton, OR Tambo Airport, Pretoria); Metrorail (limited); BRT (Rea Vaya). Heavy car dependency. OR Tambo International Airport on Gautrain. Nairobi: BRT under construction; Standard Gauge Railway connects to Mombasa. Jomo Kenyatta International Airport (NBO) bus-served. Nairobi Expressway connects Westlands to JKIA. Heavy car dependency.
Score Johannesburg, Nairobi and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.