Redefining luxury office space market in Nigeria
Lagos is, increasingly, gaining traction as a global real estate destination and given the level of sophistication that has gone into luxury office developments in this commercial city in terms of standards and build quality, it remains to be seen what world leading cities have ahead of it.
Lagos has now, by virtue of these iconic developments, joined the world’s leading cities in providing occupiers with premium Grade ‘A’ office accommodation and the international standards being achieved in current developments here, arguably, match those to be found in New York, London, Paris, Johannesburg, Singapore and Hong Kong. The occupation and utilisation of office accommodation in this city no longer implies a compromise on standards.
To qualify as Grade A, a building should meet fundamental criteria which demand that the building is not older than 10 years or it has to be competitively refurbished; it must have prime location, high quality modern finishes, modern air-conditioning infrastructure, sufficient on-site parking, adequate elevator and internal infrastructure, efficient expansive floor plates and low common area ratios, plus professional operating and management standards.
Whilst the offering of additional facilities or green credentials may further enhance desirability, failure to meet with most of the above criteria will negate a building’s claim to being Grade A.
In Lagos, over the past three to five years, a new class of buildings have emerged that portray these key characteristics. Located mainly in the Lagos Island areas of Victoria Island (VI) and Ikoyi, several of these buildings boast of possessing a number of the inherent traits true to class ‘A’ office infrastructures.
These range from completed projects such as NiPost, Standard Chartered Tower, Civic Tower in the Victoria Island area, to the up and coming Heritage Place, Lakepoint Tower, and Kingsway Towers developments in Ikoyi. These projects portray some of the key characteristics for class A buildings listed above namely prime location, modern finishes, adequate infrastructure such as air conditioning and elevators, as well as expansive, divisible floor plans with low common area ratios.
Globally, Grade ‘A’ buildings command premium rentals, reflective of the costs associated with meeting these international standards. In a business environment where there is pressure on costs and corporate leadership is focused on reducing overhead, one could well ask how any company can justify the move to a premier and apparently expensive facility. The answer lies in the efficiency, sustainability and competitive advantage which only a Grade ‘A’ facility can deliver.
Workplace strategies and innovative design now widely adopted across the world result in an effective space utilisation of less than 10 square metres per person. This integrated work environment demands the support of adequate building utilities and services including elevators, air-conditioners and facility management systems, catered for in modern Grade ‘A’ buildings.
With these occupation efficiencies, tenants will benefit from a reduction in required rentable area. Add to this the savings on monthly operating costs which a modern facility offers and tenants should expect to see an overall reduction in the occupancy costs for a Grade A facility when compared with an older, inefficient and operationally expensive building.
A company’s ability to attract and retain human talent is a critical contributor to its success. Work environment is an increasingly important factor in talent attraction and retention. Location, parking, and a modern, light, efficient and healthy work environment are all contributors in ensuring competitive advantage, the benefits of which are only now being taken into account when evaluating the value offered by a modern facility.
The effective cost savings, ability to attract talent and numerous other contributions which a Grade A building will deliver to your business are well tested in the leading cities of the world. The good news for Lagos is that these opportunities are now available to corporates.
One particular development that epitomizes class A office standards is The Wings Development in Victoria Island promoted by RMB Westport which will redefine the office environment for corporate tenants in the West African market.
“Amongst all the other features, we are installing the most sophisticated building management system available which will optimise energy consumption and ensure a fully coordinated environment at all times; it will also manage a state of the art security system, the likes of which has yet to be seen in any commercial building. This takes ‘ease of occupation and cost efficiency’ to a completely new level for the first time”, says Michael O’Malley, Director at RMB Westport.
O’Malley notes that at the business end of Ozumba Mbadiwe they have a location that combines a recently upgraded major road and the waterways of Five Cowrie Creek; a perfect setting that enables two modes of transportation to access this international quality / class ‘A’ building with the best parking allocation for an office building in Lagos and an extensive jetty which goes a long way to alleviating congestion and inconvenience.
Once on the premises, tenants and visitors will be able to enjoy three different food offerings, two recreational areas and a top drawer banking facility. The leasing agents, JLL and Estatelinks, affirm that as a package, this development stands alone in Nigeria”
Located on Ozumba Mbadiwe on the one side, with excellent waterfront views across the Lagos Lagoon on the other, Wings Towers is an iconic building which, when completed by Q3 2016, will comprise 27,000 square metres across two towers with 12 floors each. The building offers a 700-bay podium parking, with a rate of around three bays per 100-square metre of lettable area – a first in Nigeria. Given the major traffic congestion challenges in Lagos, this feature is a major differentiator for this project.
O’Malley says that in order to further distinguish their project in the Lagos Island area, they at RMB Westport and their development partner, Argentil, have sought to provide additional key features such as Wi-Fi throughout the building, fibre optics and splitters to all floors and cell phone reception boosters for all service providers.
According to him, “the ground floor will feature a restaurant for tenants and visitors with a landscaped timber deck overlooking the creek”, adding that steps are being taken to provide ferry and concierge services for tenants who will also financially benefit from the option of quarterly payment terms (for key tenants with solid covenants and size requirements).
“Thanks to projects such as The Wings; Lagos is entrenching its reputation as a provider of ‘A’ grade office accommodation and joins other leading cities of the world in offering occupiers modern innovative and optimized work environments”, he enthused.
CHUKA UROKO