Premium Sustainable Buildings in Botswana's Thriving Office Market
- kitsodickson
- Feb 26
- 4 min read
Updated: Apr 4
The Growing Demand for Grade A Offices
Premium, sustainable buildings in prime locations are commanding higher rents and attracting high-quality tenants. This trend signals strong demand in Botswana's office property market. The most in-demand segments—Grade A offices and ESG-compliant buildings—show remarkable investment potential. According to insights from Knight Frank and Letlole La Rona, Grade A office spaces have risen 11%, while green buildings offer 30 to 40% premiums. The 2024/25 property report by Knight Frank indicates that Prime office yields currently range between 7.25% and 8%, which is slightly below the continental average of 9%. This positions Botswana as a competitive market for yield-seeking investors across Africa.
Key Statistics from the Market
Rental Growth: Knight Frank revealed that monthly rents for Grade A office spaces range from P170 to P190 per square meter (US$12.22–13.66 psm).
Year-on-Year Increase: This marks an 11% rise compared to the second half of 2023, according to Knight Frank’s 2024/25 property report.
What Makes Grade A Offices Stand Out?
High-Quality Design: These buildings feature modern architecture and superior functionality.
Premium Amenities: Many include gyms, showers, and cafes, greatly enhancing the workplace experience.
Attracting Top Tenants: Knight Frank states that high-end features make these spaces desirable for businesses seeking premium office environments.
“This makes them particularly attractive to companies aiming to bolster their brand image and impress clients, partners, and stakeholders, while ensuring they can attract and retain the best talent,” the report said.
Investor Insights
According to Letlole La Rona, several key considerations impact this premium segment:
There is a strong demand for smaller, high-quality, easily subdivisible spaces.
Current requirements from strong covenant tenants range between 2,000m² and 4,000m².
Existing stock often falls short, especially concerning parking and sustainability certifications.
Rental rates are strengthening in this segment.
“There are several strong covenant tenants with known requirements in the market, for whom existing available stock will fall well short of their expectations, including sufficient parking provisions and sustainability accreditations,” Letlole La Rona mentioned in its 2023 annual report.
“This has led to a strengthening of rentals in the premium portion of the market while secondary-grade offices continue to suffer.”

Letlole La Rona added:
“In Botswana, the supply of good-quality space remains limited while an oversupply of secondary-grade stock continues to overhang the market.”

Geographical Trends in the Office Market
The market also reflects evolving geographical preferences:
The CBD continues to be the primary location for major corporate headquarters.
Letlole indicates that Setlhoa in northern Gaborone is emerging as a competitive decentralized office node. It is positioned to rival the Showgrounds, benefiting from excellent amenities.
It's crucial to note that there is a lack of available space large enough for substantial companies. Letlole believes that those with significant needs will need to agree to pre-leases.
The Impact of Green Buildings
Higher Rents: Office buildings that are green-certified attract rental premiums of 30–40% compared to conventional office spaces.
Why the Premium?: Features like energy efficiency and improved indoor air quality add value and drive demand, Knight Frank explained.
Growing ESG Focus: The increasing emphasis on Environmental, Social, and Governance (ESG) criteria is reshaping tenant preferences and enhancing interest in eco-friendly buildings.
Example: The Motswere Building in Botswana
Landmark Development: The Motswere building, owned by Prime Time, is a notable example of a green-certified office space.
Prestigious Certification: The building earned Botswana’s first 5-star design Rating under the Green Star SA certification tool.
International Recognition: This certification is acknowledged by the World Green Building Council, reinforcing its sustainability credentials.
Part of a Broader African Trend
Botswana is following a continental shift in office space demand. The demand for Grade A and ESG-compliant offices mirrors trends seen in major African business hubs.
High Occupancy Rates: According to Knight Frank, cities such as Johannesburg, Cape Town, Nairobi, Cairo, and Lagos report Grade A office occupancies exceeding 70% after steady growth over the last two years.
Notable Developments
The Mirage Towers (Nairobi)
The Sandton City Office Towers (Johannesburg)
The Nile City Towers (Cairo)
The Landmark (Lagos)
Rising Rents in Key Markets
Price Growth Across Africa: Demand for eco-friendly, high-tech office spaces is driving rental prices higher.
Case Study: In Johannesburg, Prime rents for Grade A offices rose by over 15% year-on-year, reaching approximately US$15 per square meter monthly in 2024, up from US$13 in 2023, according to Knight Frank.
Botswana's Outlook
Despite the positive trends, Knight Frank has cautioned that Gaborone's office supply is set to expand over the next 2-3 years. This upcoming increase in available space may potentially exert downward pressure on prime rents and slightly raise vacancy rates from their current historic lows. Leasing inquiries jumped 10% in the second half of 2024 compared to the same period last year.
According to Knight Frank:
The office vacancy rate in Gaborone remained low in H2 2024, ranging between 2% and 4%. Most vacancies are concentrated in older office stock within the Kgale and Main Mall nodes, which experienced a 3% decline in occupancy rates compared to H2 2023.
Conversely, newer, top-grade offices have maintained high occupancy rates, ranging between 96% and 100%, driven by their modern amenities and sustainability standards.
In summary, the office property market in Botswana is thriving, particularly for Grade A and ESG-compliant buildings. With evolving trends and robust demand, investors are keenly observing this dynamic landscape for opportunities. For those looking into investments in the property market, understanding these trends is crucial for making informed decisions.
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