Why logistics and warehouse market rents and values are set for continued growth.
Updated: Feb 14, 2022
The outlook remains positive for the logistics and warehouse market in Nigeria as a result of renewed interest from the occupier and investment markets; due to:
1. Additional 1m+ (as estimated by Knight Frank's Africa 2021 Logistics & Industrial Update) purpose-built warehouse space required in order to meet the growing demands within the prime and secondary locations - Lagos, Ogun, Port Harcourt, Kano, etc.
2. Retailers demands for warehouse space for storage and distribution centres across major locations to reach more customers and draw in more income.
3. Industrial and retail stocks leading the pack in growth and price appreciation, as the decision to buy rather than lease is preferred.
4. Occupier demands concentration around best-in-class stock in already established markets with excellent infrastructure - special economic and free trade zones, industrial parks and schemes, and private developments.
5. Supply shortage underpinning prime rental growth and capital gains.
6. Major FGN infrastructure upgrades and increase in manufacturing activities and agricbusiness around the industrial property markets.
7. The favourable environment is given a major boost to net absorption, development opportunities and strong appetite for industrial stock.
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