Investing in co-working spaces can be a lucrative opportunity given the growing demand for flexible office solutions. Co-working spaces present an exciting opportunity, but it’s important to approach it with the same level of diligence and caution as any other investment. Here are some considerations to keep in mind before making a decision:

Differences between Great and Terrible Co-Working Spaces


Great Co-Working Spaces:

  1. Productive Environment: Great co-working spaces provide a productive atmosphere that promotes focus and concentration. They have designated work areas, comfortable seating, and a quiet ambience, enabling members to work efficiently.
  2. Amenities and Facilities: These spaces offer various amenities and facilities to enhance the working experience. They may include high-speed internet, conference rooms, private offices, printing and scanning services, on-site cafes or refreshment areas, and even fitness facilities.
  3. Community and Networking Opportunities: Great spaces foster a sense of community among their members. They organize networking events, workshops, and social activities, providing opportunities for collaboration, knowledge-sharing, and professional growth.
  4. Flexibility and Customization: They offer flexible membership options, allowing individuals or teams to choose the duration and type of space they need. Great co-working spaces may have open desks, dedicated desks, private offices, or meeting rooms, accommodating various work preferences.
  5. Supportive Staff: The staff in great co-working spaces are friendly, professional, and readily available to assist members with any queries or concerns. They maintain the space, ensure a smooth operational flow, and often organize community events to encourage interaction.

Terrible Co-Working Spaces:

  1. Poor Infrastructure: Terrible co-working spaces may have outdated or unreliable infrastructure, such as slow internet connections, malfunctioning equipment, or uncomfortable furniture. These factors can hamper productivity and create frustration among members.
  2. Lack of Privacy and Distractions: Inadequate space planning and layout can result in a lack of privacy and excessive noise, making it difficult for individuals to concentrate. This can be a major drawback for those who require a quiet and focused work environment.
  3. Limited Amenities and Services: Terrible co-working spaces may lack essential amenities or charge extra fees for basic services. This could include limited access to meeting rooms, inadequate kitchen facilities, or unreliable support staff.
  4. Lack of Community Engagement: In contrast to great co-working spaces, terrible ones may lack a sense of community and fail to foster networking opportunities. The absence of organized events, workshops, or collaborative initiatives can make the space feel isolated and less engaging.
  5. Inflexible Contracts: Terrible co-working spaces often have rigid and inflexible membership contracts, leaving individuals or teams locked into long-term commitments even if their needs change. This lack of flexibility can be inconvenient and restrict a member’s ability to adapt their workspace as required.

Overall, great co-working spaces prioritize a conducive work environment, a sense of community, and flexibility, while terrible co-working spaces may fall short in these areas, leading to a less satisfying and productive experience for their members.

Before you invest

  1. Research the Market: Start by researching the co-working industry and understanding the current trends, market demand, and competition. Look into market reports, industry publications, and news articles to gather insights.
  2. Define your Investment Strategy: Determine your investment goals, whether you want to invest directly in a co-working space or through a real estate investment trust (REIT). Consider factors such as location, target market, amenities, and pricing models.
  3. Evaluate Potential Locations: Identify potential locations for your co-working investment. Look for areas with high demand, proximity to transportation hubs, business districts, or areas with a thriving startup and freelance community. Consider factors like population density, accessibility, and local business climate.
  4. Conduct Due Diligence: Perform thorough due diligence on the co-working space you are considering investing in. Assess factors like the financial health of the company, occupancy rates, lease terms, management team, and growth projections. Engage professional advisors, such as lawyers and accountants, to assist with the evaluation.
  5. Understand the Business Model: Gain a comprehensive understanding of the co-working space’s business model. Evaluate the pricing structure, membership plans, and value-added services offered. Assess how the company differentiates itself from competitors and how it plans to sustain profitability.
  6. Analyze Financials: Review the financial statements, including revenue, expenses, and profitability of the co-working space. Assess the stability of the revenue streams, the ability to cover operating costs and the potential for future growth. Evaluate the pricing strategy and whether it is aligned with the market demand.
  7. Assess Risk Management: Consider the risks associated with investing in co-working spaces, such as economic downturns, changing work trends, competition, and lease obligations. Evaluate the risk mitigation strategies employed by the co-working space, such as diversification, tenant retention programs, and contingency plans.
  8. Seek Professional Advice: Consult with professionals who specialize in real estate investment or commercial property management. They can provide insights into the local market, and legal requirements, and help you navigate the investment process.

After you Launch your space

  1. Network and Partnerships: Build relationships with industry professionals, co-working space operators, and potential partners. Attend industry events, join networking groups, and engage with stakeholders to gain valuable insights and potential investment opportunities.
  2. Monitor and Adapt: Once you invest in a co-working space, actively monitor its performance and adapt as needed. Stay updated with market trends, adjust pricing strategies, and explore opportunities for expansion or diversification to maximize returns.

Remember, investing in co-working spaces carries risks, so it’s crucial to conduct thorough research and due diligence before making any investment decisions. Our Real Estate team is always available to provide support in this regard.



There has been a boom in the volume of investment in vacant real estate over the past decade;this boom seems to be driven by certain misconceptions which have been fed by advertising campaigns and the mass media. This misconception is that land values appreciate at a rate which exceeds rates of return on alternative investments such as treasury bills, stock or other asset classes. These misconceptions have led to the growth of a speculative bubble which seems to have driven the costs of available real estate beyond reasonable levels whilst creating a surplus of under-developed real estate.
Property for sale. - stock photo

In general, by investing in developing the land you may destroy an option and at the same time you may create other options. Vacant land represents an option of retaining it in its vacant form and expecting an increase in value of the land, or turning the vacant land into a development, thereby increasing its intrinsic potential for value creation through the injection of capital.


The valuation of land requires the computation of risk-neutral probabilities that generate expected cash flows corresponding to various project outcomes. The computation of these probabilities requires the calculation of current and future construction costs, current and future market prices of real estate in the area where the land is located.


Prior to purchasing land, it is pertinent to have an idea of the use to which the land is to be put, including the proposed structures which are to be constructed upon the land and the market prices or rental values such structures would fetch in the future based on the surrounding properties in the area. In calculating the values of the property, provision should be made for the probability that the property may fall in value in the future.


We hope these tips will prove useful to you as you begin to navigate the world of real estate investment. For further information and consultancy, we may be contacted directly on +2348036258312, or by email on :


Justice O.E Abang of the Federal High Court, Ikoyi, on Thursday 14th May, 2015 stopped further processes relating to the draft corporate governance code released by the Financial Reporting Council of Nigeria (FRCN) on April 15, 2015 with a 30-day window for stakeholders to comment on the 133-page document, ahead of a planned public hearing on May 19, 2015.

The presiding judge, at the hearing of the ex parte application for injunction brought by Timothy Adesiyan  and nine others against the Minister of Trade and Investment and three others , granted the applicants’ ex parte application and ordered that the defendants should maintain status quo and suspend further deliberations, considerations, proceedings, processes and all actions relating to the draft National Code of Corporate Governance (NCCG) 2015, pending the hearing of the motion on notice for injunction.

The judge heard the arguments of the plaintiffs’ counsel, Kemi Pinheiro (SAN) in favour of the ex parte application and thereafter gave a well-considered bench ruling wherein he granted the applicants’ ex parte application. Subsequently, the suit was adjourned to May 20, 2015, for hearing of the plaintiffs’ motion on notice for injunction.

BusinessDay had exclusively reported last week about the fears being expressed by business leaders and investors that the policy document could wield excessive powers over Nigeria’s already challenged private sector, following the deadline for public comments which expired yesterday. According to comments received exclusively by BusinessDay on conditions of anonymity, the NCCG, according to them, may swing the country from one extreme of weak corporate governance to another extreme of excessive regulation.

The NCCG is the government’s comprehensive response to the weak corporate governance environment in Africa’s largest economy, identified as a main cause of the 2008/2009 banking sector crisis. The document promises to harmonise existing codes in the banking, pension, insurance and other sectors into a unified code of rules for board compositions, audit processes, and shareholder protection, among others, which will be regulated by the Financial Reporting Council of Nigeria (FRC).However, business leaders say the convergence of the codes into a one-size-fits-all would miss out on industry specific details or contradict existing industry policies.