A theatre as an organization is composed of people, facilities and systems put in place to achieve specific objectives. The people, the facilities, and the systems interplay in order to achieve the given goal. The facilities are composed of buildings, infrastructure and support services. As a production system, it is subject to wear and tear apart from the fact that both facilities and the people respond to the dictates of life cycle. Most theatres in Nigeria are designed to the conventional Euro-American style and form with similarities in space arrangement, architectural form, physical orientation, placement, space locations and its facility management policy. Assessing these theatres, there is also a progressive decay in architectural structures, technical equipment and production infrastructure due to poor management and insufficient funding by the owners. This study is based on the Field and Environmental Psychology Theory (FEPT) propounded by Kurt Lewin, Contingency Approach (CA) propounded by Lawrence and Lorsch and Ludwig Von Bertalanffy’s Systems Theory (SA). The Field and Environmental Psychology Theory examine patterns of interaction between the individual and the total field, or environments while the Systems Theory and Contingency Approach, viewed organizations as complex systems of people, tasks and technology. They looked at interaction between people and their environment. The common goal in creating public assets is to have them serve effectively and as long as is physically possible. This requires that they be prevented from falling into decay and disrepair through appropriate management.