THE HUMANS OF ORGANIZED RETAIL IN NIGERIA & THEIR EARNINGS PER GROSS LETTABLE AREA

Since the Palms Shopping Mall, Lekki in Lagos, and Ceddi Plaza developments brought in formal and contemporary retail, the job and real estate markets in Nigeria have benefited and maintained upward trends. The positive growth achieved in these markets from 2006 to 2021 also contributed to the rise of Nigeria’s retail trade to $108 billion as reported in the 2021 Global Retail Development Index (GRDI).

According to the data available to @akaa.avas, management salaries and expenses for the organised retail (core and secondary market only) rose from $4.22 to $26.09 per square metre of gross lettable area in 2006 and 2021. This automatically resulted in a gross payouts (salaries and expenses) of 0.08% and 0.59% of the Market Value/GLA/sqm retail space available in 2006 and 2021, respectively.

Looking at the overall annual administrative and asset management costs, it is important to analyze these costs in order to understand:

a. The contribution of management salary and expense to the overall operating expenses;

b. Administrative costs as a percentage of operating expenses, effective gross income, net operating income, and net cashflow;

c. Past and future growth of salary and expense;

c. Effect of employment payouts on net operating income and capital value.

How much does it cost (in terms of employment payouts) to operate, maintain, and manage organized retail space to serve retail and wholesale businesses in Nigeria?

To learn more, connect at +234-806-877-4629, aabraham@akaa-ng.com or visit our website at www.akaa-ng.com

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