FACTORS AFFECTING REAL ESTATE LEASE OR OWN DECISION OF CORPORATE ORGANIZATIONS IN SOUTH-SOUTH NIGERIA

Purpose: Corporate organizations are often faced with a complex decision either to lease or own the real estate or property used for their operations. The Nigerian real estate market is characterized by a blend of both leasing and ownership, with organizations carefully considering the benefits and drawbacks of each option. This study identified the factors affecting real estate lease or own decision of corporate organizations in South-south Nigeria.

Design/methodology/approach: The study population was drawn from real estate professionals who manage major restaurants and petrol fuelling stations in the capital cities of Akwa Ibom, Cross River and Rivers States. These states are selected due to their status as major economic hubs in the region. A sample size of 100 was randomly selected and a survey was conducted using a structured questionnaire. Data were analysed using percentages and means scores.

Findings: Retention of control was identified as the most important factors in lease or own decision of corporate organizations. Other important factors include local town planning laws/regulations, location and organization's preference. Facility in area of declining real estate value, tax considerations and avoidance of property management responsibilities were perceived to be least significant in the real estate lease or own decision of corporate organizations.

Research limitations/Implications: This study has reported the results of investigation on two selected corporate organizations with penchant for leasing real estate facilities for their operations. Therefore, caution should be taken when generalizing the results for other corporate organizations that may have a different perception about leasing.

Practical implications: It was concluded that a wide range of factors significantly affected real estate lease or own decision of corporate organizations. The implication is that the lease or own decision for real estates of corporate organizations require a careful combination of several internal and external factors.

Originality/value: The study revealed the preference of selected corporate organizations in petrol fuelling stations and restaurants in South-South Nigeria to lease or own real estate.