2017 Commercial Real Estate Industry Report

Source of information and target users

Our primary sources of information include face-to-face, site visits and telephone interviews with Industry operators and regulators. Secondary sources of information include third party research papers, Industry and trade associations and other print and electronic media. In addition, we have estimated key demand and supply data based on our knowledge of the Industry and market survey where we have been unable to get detailed financial information.

The report would be useful to:

  • Investors seeking viable investment outlets in the Lagos Commercial Real Estate Market
  • Bankers who wish to assess the credit worthiness of the Industry players
  • Industry participants
  • Analysts, investors and other users of financial information who require a good understanding of the Industry
  • Regulators and policymakers seeking to understand contemporary issues in the industry

This report provides information on the Lagos Commercial Real Estate Market (‘the Industry’) and covers the following:

  • Overview, size and structure of the Nigerian Real Estate Industry
  • Lagos Commercial Real Estate Industry segmentation
      • Office Space market
      • Retail Market
      • Entertainment and Event Centre Market
  • Industry summary & outlook

Key Findings

  • The retail segment of the Lagos commercial real estate market has witnessed overall decline in demand over the last 18 months driven by reduced consumer spending due to harsh operating environment, which has led to slow take up of spaces, higher vacancy rates in new retail developments and inability of customers to meet rental obligations in existing malls.
  • The Lagos office space market has seen a rise in the number of mixed-use developments in select locations mainly due to favourable zoning regulations as well as the need to maximize limited land area for multiple uses. This has ultimately resulted in an oversupply of Grade A office spaces notwithstanding the weak corporate demand.
  • The entertainment and event centre market in Lagos has shown considerable resistance to economic pressures brought about by the recession. Although demand dropped marginally, rental prices have remained relatively stable over the past three years.