Lagos is the economic hub of Nigeria, and commercial properties here are printing money for smart investors. But not all commercial properties are created equal. After 20 years in this business, I’ve learned what separates the gold mines from the money pits. 

Location is everything in commercial real estate. A small shop in Ikeja GRA will generate more rent than a large space in a remote area. Look for properties near banks, government offices, hospitals, or schools. These locations guarantee steady foot traffic and reliable tenants. 

The magic is in the numbers. A ₦20 million commercial property in Victoria Island can generate ₦3-4 million annual rent. That’s a 15-20% return on investment – much better than any savings account or government bond. 

But here’s what most people don’t consider: commercial properties often come with long-term leases. While residential tenants might move after a year, commercial tenants often sign 3-5 year agreements. This means predictable, stable income. 

The best commercial properties have multiple income streams. A building with shops on the ground floor and offices upstairs reduces your risk. If one tenant leaves, you still have income from others. 

Start small if you’re new to commercial real estate. A single shop space can be your entry point into this profitable market.