Performance Assessment of Industrial Real Estate Contribution to Nigerian Economy
Journal of Investment and Management
Volume 4, Issue 5, October 2015, Pages: 132-140
Received: Jul. 13, 2015; Accepted: Jul. 29, 2015; Published: Aug. 11, 2015
Views 4524      Downloads 176
Nurudeen Akinsola Bello, Department of Estate Management, Faculty of Environmental Sciences, University of Ilorin, Kwara State, Nigeria
Ismail Kolawole Bello, Department of Estate Management, School of Environmental Studies, Moshood Abiola Polytechnic, Abeokuta, Ogun State, Nigeria
Olufola Toyosi Elegbede, Department of Estate Management, Faculty of Environmental Studies, The Polytechnic, Ibadan, Oyo State, Nigeria
Article Tools
Follow on us
This work is set to measure the contribution of real estate to the production output of manufacturing industries in Nigeria and relate it to the gross domestic product of Nigeria with a view to providing guidance for the industrial investors, measuring past achievements and providing the basis for planning and control decisions. 44 of the 108 industries in industrial town of Ota in Nigeria were randomly sampled to elicit data between 2008 and 2012 from heads of administration of each industry and data collected were analyzed using descriptive statistics. The findings indicated that at aggregate level, industrial properties in Ota, Nigeria contributed 19% performance to the manufacturing success of industrial establishments. Furthermore, while both contributions of manufacturing sector to the national economy and the industrial real estate to manufacturing output are not steady or specific in trend, the average of the contribution of manufacturing/industrial sector to Nigerian economy from 2008-2012 as gathered from various sources indicated 3.41%, the implication of this is that the industrial real estate’s actual contribution to Nigerian economy is 0.65%. This work did not measure the value (capital or rental) to determine performance of industrial properties; rather it rated the performance of each standard economic factors of production (land, labour, capital and entrepreneur) base on their contribution to the production activities of the industries by conversion of qualitative perception of the respondents to quantitative measurement. Further endeavor is desired to have pure quantitative measurement as improvement on this qualitative perception. The field of real estate of manufacturing industry lacks empirical measurement to quantify the value that it adds to the firm’s performance and this has made the contribution of real estate to the firm not properly considered or recognized. This work is therefore non-economic parameter used to quantify the contribution. The benchmarks developed in this work were found to be measurable and appropriate for owner occupied industrial buildings and makes collection of data simple. The work advanced the benchmarks required for the performance evaluation of industrial buildings without resorting to determination of actual value. This will be useful for government to fix industrial real estate in the national economic importance as against the usual real estate investment contribution to the national economy.
Industrial Real Estate, Industrial Sector, Performance, Production Output, National Economy, Gross Domestic Product
To cite this article
Nurudeen Akinsola Bello, Ismail Kolawole Bello, Olufola Toyosi Elegbede, Performance Assessment of Industrial Real Estate Contribution to Nigerian Economy, Journal of Investment and Management. Vol. 4, No. 5, 2015, pp. 132-140. doi: 10.11648/j.jim.20150405.11
S.Tsolacos, T. Mcgough & B. Thompson “Affordability and performance in industrial property market” Journal of property investment & finance vol. 23 No 4 p 311-328 (2005)
National Bureau of Statistics NBS ‘Nigerian Real Estate Sector, Summary Report 2010- 2012’ 2015 Real Estate outlook in Nigeria February 2015.
A. Krystalogianni, G. Matysiak, & S. Tsolacos, “Forecasting UK Commercial Real Estate Cycle Phases With Leading Indicators: A Probit Approach” in Applied Economics (2004)
Y.A. Adewunmi, & M.M. Ominrin, “Locational choice and business performance in Nigeria’’ The Estate Surveyor and Valuer Journal of NIESV vol. 32 No. 1 January. (2009)
Y. Zhao ‘Industrial property performance and building functionality’ an M Sc. In real estate development thesis submitted to the department of architecture, Massachusetts Institute of Technology (2003)
A. Olaleye, ‘A study of property portfolio management practice in Nigeria’, an unpublished Thesis of the department of estate management, Obafemi Awolowo University, Ile-Ife, Nigeria (2000)
Olaleye, A, Adegoke, O.J. and Oyewole, M.O. (2010) ‘A Comparative Analysis of the Investment Features of Real Estate and Stocks in Nigeria’ Readers Journal 2 (1): 47-65
O.M. Bello, ‘Comparative Analysis of the Performance of Residential Property Investment and Investment in Securities in Lagos Nigeria’ Journal of Nigerian Institution of Estate Surveyors and Valuers 26 (4):7-14. (2003).
O.M. Bello, ‘The Inflation Hedging Characteristics of Nigerian Residential Property Investment’ Journal of Property Research and Construction.1 (1):40-55. (2004).
O.B.A. Idowu, ‘Analysis of Residential Property returns in Lagos metropolis (1991- 2004) Environlink – Journal of Physical and Environmental Development 1 (1):166-176 (2006)
M.O. Oyewole, ‘A Comparative Study of the Performance of Direct and Indirect Property Investment in Lagos’, an unpublished M.Sc. thesis of the Department of Estate Management, Obafemi Awolowo University, Ile-Ife. (2006).
A. Amidu, & B.T. Aluko, ‘Performance analysis of listed construction and real Estate Companies in Nigeria’ Journal of Real Estate Portfolio Management 12 (2):177- 185 (2006)
D.I. Dabara, ‘Inflation hedging potential of commercial real estate investments in selected state capitals of South-western Nigeria’ being an M Sc thesis submitted to Department of Estate Management, Faculty of Environmental Design and Management, Obafemi Awolowo University, Ile-Ife, Nigeria. (2014)
M.O. Ajibola, S.A. Oloyede, & A.O.E. Oni’Real Estate Investment Trust: An Attractive Investment Vehicle for Real Estate Development in Nigeria’ Journal of The Nigerian Institution of Estate Surveyors and Valuers 32 (1):60-66 (2009)
B. Tijjani, S.M.G.Fifield & D.M. Power The appraisal of equity investments by Nigerian investors. Journal of Qualitative research in financial markets. 1 (1):6-26 (2009).
N.A. Bello ‘Comparative Analysis of Commercial Property and Stock-market Investments in Nigeria’ World Academy of Science, Engineering and Technology WASET Issue 70 Lucerne October. & International Journal of Social, Management Economics and Business Engineering vol;6 No 10 (2012)
M.A.Green, “A standard method of property performance measurement; investment analysts” Journal –Spring (1991)
The National Bureau of Statistics (2013)
A.V. Adejumo, “Foreign Direct Investments and Manufacturing Sector Performance In Nigeria, (1970-2009)” Australian Journal of Business and Management Research Vol.3 No.04 [39-56] | July-2013
C. Rajnesh “Industrialization and Development in the third world”. Routledge, London. (1992).
S.A. Banjoko, I.I.Iwuji,& K. Bagshaw, “The Performance of the Nigerian manufacturing Sector: A 52-Year Analysis of Growth and Retrogression (1960-2012)” Journal of Asian Business Strategy, Vol. 2, No. 8, pp. 177 -191. (2012)
M.O. Kayode, “Nigeria since independence: The first 25 years”. Ibadan, Nigeria: Heinemann Books Ltd. (1989)
UNIDO “Changing patterns industrial performance: A UNIDO competitive industrial performance perspective implications for industrial development” Working Paper 05/ 2009, UNIDO, Research and Statistics Branch. (2009)
Torto Wheaton Research modeling the industrial market in United State of America, (2002)
R.S. Kaplan, & D.P. Norton “Using the Balanced Scorecard as a Strategic Management System”, Harvard Business Review, January-February, 75-85. (1996)
R.S. Kaplan, & D.P. Norton, “Having Trouble with Your Strategy? Then Map It”, Harvard Business Review, September-October, 167-76. (2000)
R.S. Kaplan, & D.P. Norton, “Strategy Maps: Converting Intangible Assets into Tangible Outcomes”, Boston: Harvard Business School Publishing Corporation. (2004)
C.M. Burns, “Analysing the Contribution of Corporate Real Estate to the Strategic Competitive Advantage of Organizations”, working papers, available at: (2002)
A. Lindholm & S. Nenonem, “A conceptual framework of CREM performance Measurement tools”. Journal of Corporate Real Estate. 8 (3):108 – 119. (2006)
T. Lützkendorf, T. Speer, F. Szigeti,G. Davis, P. Le Roux, A. Kato,& K. Tsunekawa, “A comparison of international classifications for performance requirements and building performance categories used in evaluation methods”. Technical Research Centre of Finland (VTT) / Association of Finnish Civil Engineers (RIL). Assessed from (2005)
Olorunfemi, S., Tomola, M. O., Felix, O. A. and Ogunleye E.O. (2013) “Manufacturing Performance In Nigeria: Implication For Sustainable Development” ‘Asian Economic and Financial Review, 2013, 3(9):1195-1213
S. Hartmann, P. Linneman, A. Pfnür, D. Moy & B. Siperstein, "Responsibility for and performance of corporate real estate functions", Journal of Corporate Real Estate, Vol. 12 Iss: 1, pp.7 – 25 (2010)
R. Appel-Meulenbroek, P. Groenen, & I. Janssen, "An end-user's Perspective on activity-base office concepts", Journal of Corporate Real Estate,Vol. 13 Iss: 2, pp.122 – 135 (2011)
J. Niemi, & A. Lindholm, "Methods for evaluating office occupiers' needs and preferences’’ Journal of Corporate Real Estate, Vol. 12 Iss: 1, pp.33 – 46 (2010)
S. Roulac, A. Adair, S. McGreal, J. Berry, L. Brown & George Heaney, "Corporate strategic decision making: A comparative analysis of companies in the industrial and non- industrial sectors", Journal of Property Investment & Finance Vol. 23 Iss: 4, pp.364 – 378 (2005)
A. Lindholm, K.M. Gibler, & K.I. Levainen “Modelling the value adding attributes of real estate to the wealth maximization of the firm”, Journal of Real Estate Research, Forthcoming (2006)
T. Salau, T. Lawanson & O. Yadua ‘Amoebic urbanization: the Lagos-Ota nexus in: Laryea, S. and Agyepong, S. (Eds) Procs 5th West Africa Built Environment Research (WABER) Conference, 12-14 August 2013, Accra, Ghana, 99-110. (2013)
Manufacturing Association of Nigeria (MAN) 2014
Nigerian Society of Chemical Engineers (2013) ‘Assessment of the manufacturing sector performance in relation to power infrastructure in Nigeria’ available at
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186