2020 Real Estate Office Space Industry Report

Over the last five years, the office space segment of the commercial real estate industry has witnessed major changes, with the development of a number of new spaces, particularly in prime locations across Nigeria.

Typically, properties in the office space market are classified into Grade A, B and C, based on the standard of finishing, range of facilities, location, quality of amenities and rental value. Agusto & Co. notes that the office space market is the largest segment of the commercial real estate market, accounting for more than half of the transactions, closely followed by the retail and industrial segments.

Nonetheless, transactions in the office space market have slowed in the last two years, due to the economic recession which adversely impacted business activities. As a result, some corporate organisations have shut down operations, with a number of international companies exiting Nigeria due to the challenging operating environment. Thus, leaving the office space market segment with a high vacancy rate, particularly in the Grade A category at circa at 57% in 2019 (2018: 54%). The office space vacancy rate is expected to average about 61% in 2020, on account of the challenging operating environment which has adversely weakened demand.

Co-working is increasingly becoming a phenomenon taking root in Nigeria, particularly as operators endeavour to wean large scale tenants/occupiers from conventional office spaces with the offer of more modern and flexible office spaces. This is largely due to the growing number of start-ups in the country, changing preferences in the demand for office space and the budding ICT industry. Co-working spaces are mushrooming and providing increasing competition for the traditional office space market.

Agusto & Co. Research

This report offers a broad insight of the office space market. In particular, the report:

  • Examines the size of the real estate sector, structure and key features that impact on the Industry
  • Provides insights on market segmentation and key market trends shaping the Industry
  • Users of this report can gain competitive positioning strategies of some key operators in the Industry.
  • Outlines critical factors pertinent to the success for an operator in the office space market in Nigeria.
  • The report also reviewed the strengths, weaknesses, opportunities and threats of the Industry.

Information that the Report Provides

  • Characteristics of the major players and key dynamics in office space market
  • Comprehensive analysis on the non-traditional office space segment and market positioning of players in the non-traditional segment.
  • Policy environment and direction of regulators of the Industry
  • Growth opportunities within the office space segment while incorporating technology