Forecasting Demand for Office Spaces in Ikeja, Nigeria

Abstract

This study was undertaken to analyze the demand for office spaces in Ikeja, Nigeria with a view to determining models
useful for forecasting the demand. In attaining the stated aim and objectives of the study, one hypothesis that “there is no
significant relationship between rental values and demand for office” was tested. Data were collected from the primary and
secondary sources. Primary sources were data on demand, supply, and rental values of office spaces over a five-year period
obtained through questionnaires administered on one hundred estate surveyors randomly selected in the study. Statgraphic
Centrion XV statistical software was used to analyze the data and determine the relationship between the rental value and
demand for office spaces in the study area at 95% confidence level. The study found that there was statistically significant
relationship between the variables P-value = 0.0207, and R2 statistic indicates that the model as fitted explains 87.0188% of the
variability in Average Rental Value; while the correlation coefficient of 0.932839 indicates a relatively strong relationship between
the variables. In addition, it was found that demand for banking spaces would continue to decrease whereas purpose-built and
converted office spaces would attract increasing demand from year to year.