Madina Tower: What you should know about Grade A properties in Lagos

Previous reports had shown an oversupply in the real estate market for Grade A and B office spaces, however, the Q4 Office Market Viewpoint released by Broll Nigeria showed that this has reduced significantly. In the report, vacancy rates in Grade A buildings in Ikoyi and Victoria Island were reported to have reduced by 59% and 54% respectively in 2018.

Landlords and developers were reported to have come up with strategies to attract buyers to their properties using strategic leasing options. These options were said to include attractive financial incentives like rent-free periods, tenant fit-out allowances of as high as $400 per square metre, and longer beneficial occupation periods of up to six months. The report projected that activity in Nigeria’s real estate market will experience an upsurge in line with economic recovery.

“Approximately 14,500m2 of A-grade space was taken-up in Ikoyi market in Q4 of 2018 alone. This move by investors occurred irrespective of the elections scheduled to take place in February 2019, highlighting less risk aversion to the aftermath of the elections relative to the previous electoral cycle of 2015,” the report stated.

With the entrant of the newly completed Madina Towers on Ozumba Mbadiwe in Nigeria’s real estate market, here are four things to know about Grade A commercial office spaces.

Location: This is an important factor because Grade A buildings in one location might not be Grade A in other places. In looking for a business space to buy or rent; the space has to be easily located and accessed. Grade A commercial properties are usually located in prime locations. In a place like Lagos, major corporate and embassies have their headquarters on Victoria Island which is the key commercial hub.
Appearance: A common feature of Grade A real estate is they are usually high rise buildings with high-quality building infrastructure thus justifying the higher-than-average rent. These buildings also tend to have higher ceilings. Unlike Grade B and C building, which are less desirable and usually in need of extensive renovation. Grade B buildings are mostly found in suburbs or on the edge of financial and political districts. They are sometimes targeted by developers to for renovation to Grade A status.
Security: This is an important feature for any building especially a commercial office space. Developers often incorporate the latest security technologies into Grade A building. A quick glance at the description of Madina Towers shows that it has a computerized security system with card key access.
Parking space/amenities: Parking spaces are not very easy to come by in Lagos. Hence, cars parked on the side of the road is a common sight. A place like Madina Towers boasts of a total car parking space that can occupy 122 vehicles. This includes a ground parking floor incorporating a showroom and two parking floors with controlled access throughout the building.

For Grade-A commercial spaces, things like service elevators (different from those provided for visitors), air conditioning systems, emergencies and fire escapes, proximity to service providers are some of the other things to consider.

Age of the building: This factor is subjective but nonetheless important. Unlike Grade C buildings that have about 20 years of existence, Grade A buildings are mostly freshly built or renovated.

Madina Tower is a complete embodiment of Grade A property located at the heart of Victoria island. It overlooks the spectacular Lagos Lagoon, spreading through Victoria Island and the bridges connecting the Lagos Mainland towards Ikoyi.

This freshly built, fully serviced office complex, located at 168 Ozumba Mbadiwe in Lagos, offers a total built-up area of 11,920 SQM and total gross office area of 8,140 SQM with parking spaces for 100 cars.

It also includes spacious interiors with 2.75m net height ceilings, structurally glazed curtain wall, vitrified ceramic high-grade floors, 24/7 card key access, indoor 100 spots indoor parking with direct access to each floor, computerized electronic security, and a ground floor showroom area.

Madina Tower is certainly one of the best properties in Lagos at the moment, considering its location, as well as the facilities that are available in the posh corporate hub of Victoria Island.

The building is suitable for International Government Agencies, Large Corporations and any other investor who wishes to take advantage of being a player in Africa's biggest and best economy.

Investing in 'Grade A' properties such as the Madina Tower is a great opportunity for diversifying investment portfolios, and also getting savings on Tax and Energy. The unique design and location of the building also suitable for long term planning and adaptation.

Madina Tower: What you should know about Grade A properties in Lagos

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