Sharing Economy in the Real Estate Market: The Rising Demand for Coworking Office Spaces in Lagos, Nigeria

Abstract

Traditional real estate offices are increasingly incompatible with the current demands of office consumers due to the growing virtual nature of human interactions driven by rapid technological advancements, which has led to a shift away from the traditional requirement for location-dependent use of physical spaces. This study calls for the re-evaluation of office space consumption, particularly regarding office sharing. The study adopted a quantitative approach. Questionnaires were administered to 14 coworking office space providers and 56 coworking office space consumers in Lagos. The data were analysed using descriptive statistics, including a frequency distribution table, a weighted mean score, and a bar chart, and inferential statistics, including factor analysis. The findings revealed that 64.3% of coworking office spaces have been operating for more than 4 years. The major factors influencing providers to offer coworking office space are creating a community-centred workspace, supporting remote workers, and reducing vacancy risk, with weighted mean values of 4.57, 4.57, and 4.50. The top-rated challenges faced by consumers are noise and distractions, lack of privacy and difficulty finding a suitable seat. The primary factors influencing coworking consumers are flexibility and cost efficiency, with a total variance of 8.194, and collaborative and social interaction, with a total variance of 3.979. The growing preference for coworking office spaces suggests that real estate investors in Nigeria need to rethink their office investments to accommodate the shift in consumer behaviour. To offer a good consumer experience, the study recommends that coworking office space providers design strategic layout plans that separate focused work areas from high-activity areas, such as communal lounges, to minimise the noise and distractions coworking office space consumers face.