Cushman & Wakefield Excellerate announced this month that it would strengthen its presence in sub-Saharan African markets with a new office in the Tanzanian city of Dar Es Salaam.
The decision to open an office in Tanzania furthers Cushman & Wakefield Excellerate’s regional and pan-African strategy. Marna van der Walt, CEO of Cushman & Wakefield sub-Saharan Africa affiliate Excellerate Property Services, says: “Tanzania is an attractive and well-established African market with great growth potential, strong institutions and many of our global clients are already in the market or wish to enter it within the next few years.”
She adds: “With our established Kenyan office, our presence on the ground in Tanzania bolsters Cushman & Wakefield Excellerate’s offering in East Africa. We see this as a natural expansion. On a pan-African level, Tanzania is a critical market and our new office enables us to provide a more comprehensive service to our local and global corporate clients operating in the region.”
The Cushman & Wakefield Excellerate Tanzania team will offer a wide spectrum of services including strategic consulting, property management, project and workplace management, development management, specialised retail services, office and industrial leasing, broking, valuations, advisory and due diligence, transaction management, estate management, research, procurement and supply chain management, facilities management and risk management.
Property stalwart Simon Taylor will head the new Cushman & Wakefield Excellerate Tanzanian office.
A British National, Taylor holds a Bachelors Degree in Property Surveying from De Montford University as well as an Architecture Diploma from Shrewsbury Polytechnic. In his most recent role, Simon was Head of Real Estate East Africa for US Oil & Gas Company Halliburton, based in Tanzania overseeing a portfolio of 72 properties in South Sudan, Uganda, Ethiopia, Tanzania, Kenya, Mozambique and South Africa. Before this, Simon worked as Global Head of Property for Hibu Group (formally Yell Group PLC) covering a portfolio of 300 properties in the US, UK, Spain, Lat-Am and Asia.
The new Cushman & Wakefield Excellerate office is in Oyster Bay, positioning it close to a significant number of its country clients. They include corporates Citi Bank, British Gas/Shell, Regus, Ophir, Gatsby, and Schlumberger, and developers such as Cordura Oyster Bay Shopping and office complex, Takim Developers, Harbour View Towers, Aris Insurance, Tarak Farhat and Zizu Kenya Limited.
With new roots planted in Tanzania, Cushman & Wakefield Excellerate remains focused on growing its on-the-ground comprehensive real estate services for clients that are in or want to be in the region.
The next step will be opening a Cushman & Wakefield Excellerate office in the key market of Uganda, confirms Van der Walt.
Considering local real estate market dynamics, Taylor points out that while Dar Es Salaam is not the official capital of Tanzania, it is undoubtedly the economic capital. Its rents and capital values have traditionally been high by regional standards, and greater than either Nairobi or Kampala.
“Like many rapidly developing African cities, Dar Es Salaam is undergoing a great change in all its property sectors in terms of location, design, availability and pricing,” reports Taylor.
While its CBD is congested and ageing, it still retains most businesses and commerce. Recent developments increased space supply in the CBD, but this has not softened rental levels because of the demand for quality office space here. In the CBD, the highest achievable rents are in the order of USD21/m² a month.
Avoiding the traffic congestion of the CBD, the Gardens Area is emerging as the city’s new prime office location. Its popularity is growing, especially within the colloquially dubbed “golden triangle”, which is nestled between Ohio Street from its junction with Bibi Titi Mohammed, and Samora Avenue out to the Ocean Road (recently renamed Barack Obama Drive).
While still central within Dar es Salaam, and adjacent to the CBD, the area has a noticeably different feel. Here rents are generally in order of $20/22m² a month, but up to $24m² a month has been achieved for offices with sea views.
“The Gardens Areas has become the preferred location for quality office space and most international companies and Diplomatic missions. The area offers the sought-after amenities of major business hotels, a golf course and is home to the botanical gardens,” says Taylor.
He also notes that oil and gas operators almost exclusively favour the Peninsula and financial services are following their lead with Citi Bank committing to relocate their headquarters out of the CBD in 2016.
The most popular areas for office space include Hassan Mwinyi Road leading to New Bagamoyo Road and out towards Masaki Peninsula in both Oyster Bay and along the main spine road Haile Selassie. There are also several developments underway in Mikochini along the New Bagamoya Road.