Standard Chartered Bank, owner of a Prime Grade 15 floor office tower in Victoria Island, Lagos, is among the major corporate occupiers including banks and FMCGs that are seeking more efficient ways to maximise the potential of their space in a region with one of Africa’s highest occupancy costs. The tower, which serves as their HQ, was finished to international standards and comes with raised floors, green features such as air conditioning chiller plants that recycle 40% of fresh air, superior security, excellent views and additional amenities like an on site cafeteria, a gymnasium, a mother’s lounge as well as a bank/ATM gallery.
As the Nigerian real estate market continues to deepen and evolve, the participants are increasingly becoming more sophisticated. Through internal advisory, or with the support of real estate advisors like Broll and JLL, occupiers are pushing back against high occupancy costs by optimizing the usage of their space with the goal of using less or putting excess space back onto the market for supplementary income.
Standard Chartered Bank is currently subletting ~700sqm of prime office space from their Nigeria Headquarters. When this space was initially released, the addition to the Lagos office supply came at a time when demand for prime offices was failing to match the pace. Unfortunately, that is still the case. However, Standard Chartered Bank, who are not in the investment real estate business, have the capability to be flexible with rentals, making them much more competitive.
Among other things, the space comes with the added advantage of having an international bank as a co-tenant, which is a good image for corporate identity, however some firms in the financial industry may shy away. Parking, which was at a poor ratio of 1:90, has now been significantly improved through a newly developed parking facility and the acquisition of offsite locations nearby.