Influence of Physical Characteristics on the Performance of Office Properties in Lagos, Nigeria

The purpose of this paper is to examine the influence of property physical characteristics on the performance of office properties in Lagos, Nigeria. By recognizing which physical features made significant contribution, market participants will know how physical features influence the performance of office property market. The trend in returns of office property investments is examined by using multiple regressions to establish a relationship between total return and underlying physical characteristics. The impact of age, building size, average floor space, building services, state of repairs, fixtures and fittings and design quality were explicitly considered. The results indicate that age of the property and building services made significant contribution to office property performance. The influence of other physical characteristics such as average floor space, building size, state of repairs, design quality and fixtures and fittings is not statistically significant. Overall, the age of the property could be regarded as giving the highest contribution to the performance of office property market. The study offers evidence of assessment of office properties performance and provides useful information for developers, investors and practitioners in the real estate market. Keywords: Office property, Physical characteristics, Performance, Property investment, Nigeria