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Exploring investment paradigm in urban office space management: perspectives from coworking space investors in Nigeria

Timothy Oluwafemi Ayodele (Department of Estate Management, Obafemi Awolowo University, Ile-Ife, Nigeria and Department of Quantity Surveying and Construction Management, University of the Free State, Bloemfontein, South Africa)
Kahilu Kajimo-Shakantu (Department of Quantity Surveying and Construction Management, Faculty of Natural and Agricultural Sciences, University of the Free State, Bloemfontein, South Africa)
Job Taiwo Gbadegesin (Centre for Development Support, University of the Free State, Bloemfontein, South Africa)
Theophilus Olugbenga Babatunde (Department of Estate Management, Faculty of Environmental Design and Management, Obafemi Awolowo University, Ile-Ife, Nigeria)
Cyril Ayodele Ajayi (Department of Estate Management, Faculty of Environmental Design and Management, Obafemi Awolowo University, Ile-Ife, Nigeria)

Journal of Facilities Management

ISSN: 1472-5967

Article publication date: 14 June 2021

Issue publication date: 24 January 2022

462

Abstract

Purpose

Coworking space had been a trajectory in the commercial space operation and management globally. Commercial coworking/tenancy space is confronted with an unexpected shift. This paper aims to examine the peculiarity and investment characteristics of flexible office space and the post-COVID implications on coworking office space practice and investment. This is with a view toward providing investors with an understanding of the dynamics underpinning flexible office space investment in the Nigerian emerging property market.

Design/methodology/approach

This study adopted a qualitative research approach. Open-ended interview questions were used to solicit information from nine coworking space operators in the urban property market of Ibadan, Nigeria. The structured interview data were analyzed using Atlas.ti – a computer-aided qualitative data analysis software.

Findings

The findings show that the factors influencing demand for flexible office space in the study area include flexibility, affordability, cost-effectiveness, entrepreneurship motivations and opportunity for risk sharing. The results also revealed that coworkers are predominantly mobile individuals who require a workstation away from their homes or a traditional office setup. Management challenges include deficient infrastructure, low level of awareness, stealing and high cost of operations. The impact of COVID-19 includes a drop in patronage, rent refunds, changes in working pattern and job loss, restriction to online and remote operation, the extra cost of putting prevention measures in place, changes in tenancy contract and drops in return on investment.

Practical implications

This study has implications for investors in commercial space occupation and leases in comparable developing economies.

Originality/value

The novelty of this paper lies in its relevance with the emergent behavioral changes, orchestrated from the novel COVID-19, which compels reevaluation of workplace practices and investment for economic improvement, especially as it relates to commercial real estate investment.

Keywords

Citation

Ayodele, T.O., Kajimo-Shakantu, K., Gbadegesin, J.T., Babatunde, T.O. and Ajayi, C.A. (2022), "Exploring investment paradigm in urban office space management: perspectives from coworking space investors in Nigeria", Journal of Facilities Management, Vol. 20 No. 1, pp. 19-31. https://doi.org/10.1108/JFM-10-2020-0074

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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