A light refurbishment of the Africa Re Building on Karimu Kotun Street in Victoria Island is about to be completed. It involves cladding the building’s old exterior with grey/silver alucobond, leaving it with a more modern and contemporary finish. The refurbishment has run parallel to the larger rebranding exercise by the Africa Reinsurance Corporation on their logo and identity in a bid to renew our communication to stakeholders. The small facelift may make the building more attractive for tenants in search of more affordable office space in Victoria Island.
Currently, the buildings tenants include the Africa Reinsurance Corporation, Landmark Virtual Offices, Ceragon, Nestoil Group and sister company Neconde. That being said, Nestoil and Neconde will be relocating to Nestoil Tower by year-end 2015, increasing vacancy in this property by up to 2 floors.
Over the past 12 months, the supply of Grade A office space in Lagos has increased significantly through the delivery of NIPOST/Energy Towers, Civic Tower, Pier Point, Kanti Tower and more. The large supply increase and sluggish economic activity has led to a softening of rents for such properties. Landlords of older, Grade B/C buildings in Victoria Island will begin to feel pressure to also reduce their rents or make their properties more attractive as newer, better quality options for prospective tenants come onto the market.