February 17, 2020

7 Office Buildings in Lagos with Occupancy Rates between 90% and 100%

Dolapo Omidire

In our most recently published note, we considered the poor performance seen by a handful of B Grade buildings which have been left unoccupied for over 5 years. As we mentioned, some properties, however, have been able to reach near or full occupancy despite the market turmoil. The list below highlights a handful of those buildings:

Victoria Mall Plaza II
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Victoria Mall Plaza II, Victoria Island – Lagos
  • Tenants: KPMG (KPMG also subleases their space to other tenants so space becomes available every now and then);
  • Owner: UPDC REIT;
  • Completed: 2010;
  • Location: Victoria Island;
  • Size: 7,454sqm;
  • Occupancy Rate: 100%.
Civic Centre Tower
  • Civic Tower, Ozumba Mbadiwe Avenue - Victoria Island
    Civic Tower, Ozumba Mbadiwe Avenue – Victoria Island
  • Tenants: Microsoft, Zenith Insurance, Prudential Zenith, Deloitte;
  • Owner: Quantum Capital Partners;
  • Completed: 2015;
  • Location: Victoria Island;
  • Size: 8,096sqm;
  • Occupancy Rate:  100%.
Eko Tower 1
Eko Tower I & II. Victoria Island, Lagos. Image Source: enia.fr
Eko Tower I & II. Victoria Island, Lagos. Image Source: enia.fr
  • Tenants: Total E&P Nigeria Limited;
  • Owned: Eko Hotel Group;
  • Completed: 2012;
  • Location: Victoria Island;
  • Size: 15,000sqm;
  • Occupancy Rate: 100%.
Pier Point
100 Pier Point, Ajose Adeogun. Image Credit: estateintel.com
100 Pier Point, Ajose Adeogun. Image Credit: estateintel.com
  • Tenants: Siemens, OCP, Rendeavour, Pier Point;
  • Owner: Pier Point Limited;
  • Completed: 2016;
  • Location:  Victoria Island;
  • Size: c. 2,000sqm;
  • Occupancy Rate: 100%.
Heritage Place
Heritage Place, Ikoyi. Source: primrosedevco.com
Heritage Place, Ikoyi. Source: primrosedevco.com
  • Tenants: Oracle, HP, BP, Andersen Tax, BBC, ZTE, Actis, many more;
  • Owner: Actis, Primrose Development Company;
  • Completed: 2016;
  • Location:  Ikoyi;
  • Size: 15,736sqm;
  • Occupancy Rate: 94%+ Since H2:2019.
Temple Tower
Temple Tower, Alfred Rewane Road, Ikoyi - Lagos
Temple Tower, Alfred Rewane Road, Ikoyi – Lagos
  • Tenants: African Finance Corporation, Arise Media, Samsung, Seplat;
  • Owner: YF Construction;
  • Completed: 2016;
  • Location:  Ikoyi;
  • Size: 15,000sqm;
  • Occupancy Rate: 93%.
Rising Sun
BAT Rising Sun, Ikoyi - Lagos. Image Source: Bluestar.com.ng
BAT Rising Sun, Ikoyi – Lagos. Image Source: Bluestar.com.ng
  • Tenants: Lufthansa, BCG, British American Tobacco;
  • Owner: British American Tobacco;
  • Completed: 2015;
  • Location:  Ikoyi;
  • Size: 4,056sqm;
  • Occupancy Rate: 100%.

While this might paint an attractive picture of the market, many of these buildings have reached strong occupancy levels at the detriment of other landlords. Lagos’ office market is still largely driven by relocations, and while that is a standard driver for leasing activity anywhere in the world, when it becomes the most dominant it speaks to a greater problem. Here’s a small preview into market transactions that drove occupancy in the buildings listed above.

  • Lufthansa relocated from Churchgate Tower;
  • HP relocated and expanded from Regus in Mulliner Tower;
  • Samsung relocated from FF Towers;
  • Seplat relocated from lower-quality space and consolidated other locations;
  • Deloitte relocated from Akintola Deloitte Williams House on the mainland;
  • Microsoft expanded from Serviced Offices;
  • Siemens relocated from lower-quality space;
  • Oracle relocated from Avenue Towers (unique situation);
  • Total E&P’s move involved a mixture of relocation, consolidation and expansion.

These are only a few examples.

Though other transactions such as Tek Expert’s initial explosive lease of 2,000sqm in The Wings and their eventual move to Cornerstone Tower, alongside many new (but small) new entrants are good examples of new entrants; these are only a handful when compared to the total volume of transactions and leasing activity. For the market to sustainably support the ever-growing development pipeline, new entrants need to enter into the market to expand the tenant pool. Alongside many other factors, this will be reliant on a much stronger macroeconomic environment, favourable regulation and more.

You can use app.estateintel.com to accurately track Rents, Occupancy Rates and also utilise our Occupier Radar feature to get detailed information on all commercial occupiers in Lagos! We track over 1,100 companies with information on their sector, estimated size occupied type of property occupied and much more. This includes companies who recently raised money and might be looking for new space. Email sales@estateintel.com or click the blue button on the bottom right corner to speak with a member of our team right now.

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