Journal of Investment and Management

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Performance Assessment of Industrial Real Estate Contribution to Nigerian Economy

Received: 13 July 2015    Accepted: 29 July 2015    Published: 11 August 2015
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Abstract

This work is set to measure the contribution of real estate to the production output of manufacturing industries in Nigeria and relate it to the gross domestic product of Nigeria with a view to providing guidance for the industrial investors, measuring past achievements and providing the basis for planning and control decisions. 44 of the 108 industries in industrial town of Ota in Nigeria were randomly sampled to elicit data between 2008 and 2012 from heads of administration of each industry and data collected were analyzed using descriptive statistics. The findings indicated that at aggregate level, industrial properties in Ota, Nigeria contributed 19% performance to the manufacturing success of industrial establishments. Furthermore, while both contributions of manufacturing sector to the national economy and the industrial real estate to manufacturing output are not steady or specific in trend, the average of the contribution of manufacturing/industrial sector to Nigerian economy from 2008-2012 as gathered from various sources indicated 3.41%, the implication of this is that the industrial real estate’s actual contribution to Nigerian economy is 0.65%. This work did not measure the value (capital or rental) to determine performance of industrial properties; rather it rated the performance of each standard economic factors of production (land, labour, capital and entrepreneur) base on their contribution to the production activities of the industries by conversion of qualitative perception of the respondents to quantitative measurement. Further endeavor is desired to have pure quantitative measurement as improvement on this qualitative perception. The field of real estate of manufacturing industry lacks empirical measurement to quantify the value that it adds to the firm’s performance and this has made the contribution of real estate to the firm not properly considered or recognized. This work is therefore non-economic parameter used to quantify the contribution. The benchmarks developed in this work were found to be measurable and appropriate for owner occupied industrial buildings and makes collection of data simple. The work advanced the benchmarks required for the performance evaluation of industrial buildings without resorting to determination of actual value. This will be useful for government to fix industrial real estate in the national economic importance as against the usual real estate investment contribution to the national economy.

DOI 10.11648/j.jim.20150405.11
Published in Journal of Investment and Management (Volume 4, Issue 5, October 2015)
Page(s) 132-140
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Industrial Real Estate, Industrial Sector, Performance, Production Output, National Economy, Gross Domestic Product

References
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Author Information
  • Department of Estate Management, Faculty of Environmental Sciences, University of Ilorin, Kwara State, Nigeria

  • Department of Estate Management, School of Environmental Studies, Moshood Abiola Polytechnic, Abeokuta, Ogun State, Nigeria

  • Department of Estate Management, Faculty of Environmental Studies, The Polytechnic, Ibadan, Oyo State, Nigeria

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  • APA Style

    Nurudeen Akinsola Bello, Ismail Kolawole Bello, Olufola Toyosi Elegbede. (2015). Performance Assessment of Industrial Real Estate Contribution to Nigerian Economy. Journal of Investment and Management, 4(5), 132-140. https://doi.org/10.11648/j.jim.20150405.11

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    ACS Style

    Nurudeen Akinsola Bello; Ismail Kolawole Bello; Olufola Toyosi Elegbede. Performance Assessment of Industrial Real Estate Contribution to Nigerian Economy. J. Invest. Manag. 2015, 4(5), 132-140. doi: 10.11648/j.jim.20150405.11

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    AMA Style

    Nurudeen Akinsola Bello, Ismail Kolawole Bello, Olufola Toyosi Elegbede. Performance Assessment of Industrial Real Estate Contribution to Nigerian Economy. J Invest Manag. 2015;4(5):132-140. doi: 10.11648/j.jim.20150405.11

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  • @article{10.11648/j.jim.20150405.11,
      author = {Nurudeen Akinsola Bello and Ismail Kolawole Bello and Olufola Toyosi Elegbede},
      title = {Performance Assessment of Industrial Real Estate Contribution to Nigerian Economy},
      journal = {Journal of Investment and Management},
      volume = {4},
      number = {5},
      pages = {132-140},
      doi = {10.11648/j.jim.20150405.11},
      url = {https://doi.org/10.11648/j.jim.20150405.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jim.20150405.11},
      abstract = {This work is set to measure the contribution of real estate to the production output of manufacturing industries in Nigeria and relate it to the gross domestic product of Nigeria with a view to providing guidance for the industrial investors, measuring past achievements and providing the basis for planning and control decisions. 44 of the 108 industries in industrial town of Ota in Nigeria were randomly sampled to elicit data between 2008 and 2012 from heads of administration of each industry and data collected were analyzed using descriptive statistics. The findings indicated that at aggregate level, industrial properties in Ota, Nigeria contributed 19% performance to the manufacturing success of industrial establishments. Furthermore, while both contributions of manufacturing sector to the national economy and the industrial real estate to manufacturing output are not steady or specific in trend, the average of the contribution of manufacturing/industrial sector to Nigerian economy from 2008-2012 as gathered from various sources indicated 3.41%, the implication of this is that the industrial real estate’s actual contribution to Nigerian economy is 0.65%. This work did not measure the value (capital or rental) to determine performance of industrial properties; rather it rated the performance of each standard economic factors of production (land, labour, capital and entrepreneur) base on their contribution to the production activities of the industries by conversion of qualitative perception of the respondents to quantitative measurement. Further endeavor is desired to have pure quantitative measurement as improvement on this qualitative perception. The field of real estate of manufacturing industry lacks empirical measurement to quantify the value that it adds to the firm’s performance and this has made the contribution of real estate to the firm not properly considered or recognized. This work is therefore non-economic parameter used to quantify the contribution. The benchmarks developed in this work were found to be measurable and appropriate for owner occupied industrial buildings and makes collection of data simple. The work advanced the benchmarks required for the performance evaluation of industrial buildings without resorting to determination of actual value. This will be useful for government to fix industrial real estate in the national economic importance as against the usual real estate investment contribution to the national economy.},
     year = {2015}
    }
    

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  • TY  - JOUR
    T1  - Performance Assessment of Industrial Real Estate Contribution to Nigerian Economy
    AU  - Nurudeen Akinsola Bello
    AU  - Ismail Kolawole Bello
    AU  - Olufola Toyosi Elegbede
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    AB  - This work is set to measure the contribution of real estate to the production output of manufacturing industries in Nigeria and relate it to the gross domestic product of Nigeria with a view to providing guidance for the industrial investors, measuring past achievements and providing the basis for planning and control decisions. 44 of the 108 industries in industrial town of Ota in Nigeria were randomly sampled to elicit data between 2008 and 2012 from heads of administration of each industry and data collected were analyzed using descriptive statistics. The findings indicated that at aggregate level, industrial properties in Ota, Nigeria contributed 19% performance to the manufacturing success of industrial establishments. Furthermore, while both contributions of manufacturing sector to the national economy and the industrial real estate to manufacturing output are not steady or specific in trend, the average of the contribution of manufacturing/industrial sector to Nigerian economy from 2008-2012 as gathered from various sources indicated 3.41%, the implication of this is that the industrial real estate’s actual contribution to Nigerian economy is 0.65%. This work did not measure the value (capital or rental) to determine performance of industrial properties; rather it rated the performance of each standard economic factors of production (land, labour, capital and entrepreneur) base on their contribution to the production activities of the industries by conversion of qualitative perception of the respondents to quantitative measurement. Further endeavor is desired to have pure quantitative measurement as improvement on this qualitative perception. The field of real estate of manufacturing industry lacks empirical measurement to quantify the value that it adds to the firm’s performance and this has made the contribution of real estate to the firm not properly considered or recognized. This work is therefore non-economic parameter used to quantify the contribution. The benchmarks developed in this work were found to be measurable and appropriate for owner occupied industrial buildings and makes collection of data simple. The work advanced the benchmarks required for the performance evaluation of industrial buildings without resorting to determination of actual value. This will be useful for government to fix industrial real estate in the national economic importance as against the usual real estate investment contribution to the national economy.
    VL  - 4
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