Top Opportunities in Retail Real Estate Market in Nigeria

The achievements are helping the market finding its path and route to strong recovery and growth expectations; however, the hydra-headed challenges will soon erode the gains and unleash losses on the investment if not tamed

A. Gains recorded are:

1. Excellent rent collections on invoiced raised;

2. Growing foot traffic encouraging high expectations and positive growth;

3. More neighbourhood retail developments (<10000sqm gross lettable area) focusing on essential and non essential retailing - pharmacy, supermarket, food, beverages and construction/mart, etc.

4. Asking rent still in the region of US $40 - $75 and $10 - $25 per square metre per month at both core and second-tier markets;

5. Positive market fundamentals helping new take ups and leases;

6. Strip and Highstreet malls are gradually becoming the best options for fractional ownership as more retailers are looking to own rather than leasing.

7. Positive operational performance is driving investor's focus as we begin to see major buy outs in both core and secondary markets.

B. Challenges presented itself as opportunities are:

1. Tackling vacancy levels - $416,750,000 at market value in H1:2021.

2. Tackling FOREX challenges (importation & remittance) - major concern for investors and retailers.

3. Handling supply chain & Infrastructure challenges - from port to distribution centres and to retail space.

4. Increasing other income and handling NOI worries.

5. Helping retailers to maximise online presence.

6. Addressing retail labour & special skills shortages.

7. Creating multisensory retail environment.

Take advantage, get more insights by contacting us at aabraham@akaa-ng.com and www.akaa-ng.com

🎵 credit @asake | Omo Ope

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