Office Rental Determinants in WUSE Commercial District of Abuja, Nigeria

Abstract

This paper examines the determinants of office rents in Wuse commercial district of Abuja, Nigeria. Primary and secondary data were utilized for the study. Primary data obtained for the study include office rental levels and office space data in the study area for the period between 2001 and 2012. Secondary data obtained for the study are mainly macroeconomic variables in Nigeria for the period, 2001-2012. Appropriate statistical techniques including regression analysis were used for data analysis. The study revealed that real GDP growth and vacancy rate are the major determinants of office rents in the commercial property market in the study area as they account for between 74% and 83% of the variation in office property rents in the commercial property market in the area. It concludes that Real GDP growth and vacancy rates are the significant drivers of office rental change in the commercial property market in Wuse Commercial District of Abuja, Nigeria.

Keywords: Office Property Market, Office Rental Determinants, Rental Growth, Wuse Commercial District, Abuja, Nigeria