Potential Impact of Smart Building Elements on Commercial Property Investments in Lagos State, Nigeria

Abstract

The impact of smart building elements on commercial property investment in recent years including the landscape of real estate investment has undergone significant transformation across the globe, particularly in emerging economies such as Nigeria. This study explores the potential effect of Smart Building Elements (SBEs) on commercial property investment in Nigeria, as the global narrative of real estate investment has been progressively influenced by the Fourth Industrial Revolution Technologies (Industry 4.0), particularly through the integration of (SBEs). In developed regions like the United States, evidence in literature suggests that investors are securing higher premiums in rents and transaction prices by incorporating technologies such as the smart building elements which include sensors, smart meters, smart security cameras, smart thermostats and smart lighting systems into commercial properties. SBEs address the complex demands of commercial spaces which include enhanced comfort, improved accessibility, heightened security, and efficient energy management. The study methodology is based on a review of published articles in peer-reviewed journals and conferences, accessed from online search engines including Google scholar, ResearchGate and Scispace. Results show SBEs facilitate predictive maintenance, enhance space utilization, achieve significant returns on investment, increase tenant satisfaction and retention. Notably, stakeholders (investors, facility managers and tenants) in the real estate sector are aware and accept SBEs. Nevertheless, predominant literature did not capture the tangible economic impact and the operational benefits SBEs can deliver in Lagos state, Nigeria. This research gap underscores a critical need for in-depth empirical study on how SBEs specifically affect commercial property investment outcomes in Lagos state, Nigeria.