When Facebook planned to establish its first Nigeria office in 2018, Yaba was the obvious choice. Yaba had become a focal point for tech innovation, hosting startups like Andela and the accelerator CCHub. When Mark Zuckerberg visited Nigeria in 2015, Yaba was a crucial pitstop, and he praised the vibrant tech community.
As Yaba’s ecosystem matured, its space constraints and aging infrastructure became more apparent. Companies began seeking out alternatives that offered more modern amenities and room for growth.
Inspired by Silicon Valley’s move from crowded urban areas to expansive campuses in Menlo Park and Mountain View, Lagos tech companies shifted their focus to Ikoyi, a posh neighbourhood with larger office spaces and better infrastructure.
Ikoyi has office buildings like the 14-storey King’s Tower, Heritage Place, and Famfa Tower. These buildings, priced at $600 to $800 per square meter annually, offer security, parking, and environmental standards.
In 2021, Meta moved its Nigerian office to King’s Tower. Other tech giants soon followed. Flutterwave and Microsoft joined Meta at King’s Tower, while Google moved to Heritage Place, and Amazon settled in Victoria Island.
Ikoyi became the ideal location for global companies like Meta to establish a foothold.
Why Ikoyi is the new choice location
The shift was inevitable, says Remi Dada, CEO of Spacefinish and Campus HQ, which designed offices for Andela, Flutterwave, and Meta.
“We began to see global companies operating under a different paradigm than the local tech ecosystem,” he told TechCabal. Buildings in Ikoyi have proper maintenance structures, which is a priority for global corporations, and one thing that is lacking in buildings in places like Yaba and Marina, which has a good concentration of high-rise buildings.
William Aimakhu, CEO of PWAN Perfection, an affiliate of PWAN Group, a commercial real estate provider, emphasised the strategic value of an Ikoyi address: “An Ikoyi office isn’t just an address; it’s a strategic asset. The visibility alone can increase clients’ interest (in a company), a key factor in the competitive business environment.”
World Class Experiences
Some companies, like BetKing – now KingMakers – and Canon, have created custom spaces to fit their needs. BetKing wanted a campus with recreational centers, restaurants, and studios, so Spacefinish designed a 5,000-square-meter complex for them.
These multinationals also standardise office experiences across global locations, ensuring that employees in Lagos enjoy the same quality as those in the U.S. Spacefinish took six to nine months each to design the offices for Meta, Flutterwave, and Google in Ikoyi’s King’s Tower and Heritage Place. Despite Meta reducing its office space in June 2024, demand for premium buildings remains high, with an 80% occupancy rate across Lagos and Abuja.
Tech companies aren’t the only ones moving to Ikoyi. Finance and consulting companies are increasingly drawn to Ikoyi’s premium spaces. Verod Capital, an African venture capital firm works out of Heritage Place alongside oil and gas companies.
While Ikoyi’s premium office spaces attract global giants, the high cost of leasing—denominated in dollars—remains a challenge for many local businesses. The volatility of the local currency also adds to the cost concerns locking out local startups and SMEs from these locations.
Amazon’s recent setup at Number One – formerly IMB Plaza – in Victoria Island shows that while Ikoyi is popular, areas like Victoria Island and Eko Atlantic are getting more attention for their adherence to global standards. With new high-rise projects like Dangote House underway, Ikoyi’s real estate market is expected to grow significantly, adding 100,000 square meters of premium office space for local and international businesses seeking premium office spaces.
“Investors are looking at macroeconomics. They’re looking at the demand. They want to ensure that they are not building buildings that will not be occupied. So the market forces are also another consideration for the type of office landscape that we have,” Dada said.
