JLL: Dubai sees demand for smaller office units
A number of office towers across Dubai are now catering for this trend towards smaller units
Demand has shifted towards smaller deals in the Dubai office market as occupiers respond to more challenging market conditions, according to the advisory firm JLL.
In its Q3 2016 Dubai Real Estate Market Overview report, JLL said that there were relatively few large transactions for office space agreed during the third quarter of the year.
Craig Plumb, head of research, JLL MENA, said: “This reflects occupiers’ caution in the face of more challenging economic conditions in both Dubai and across the broader region.
“While there remains strong demand for smaller units, it is taking far longer to negotiate larger deals as companies remain uncertain about their staffing and space requirements.”
A number of office towers across Dubai are now catering for this trend towards smaller units. Index Tower (located in the DIFC), for example, has divided four of its floors into smaller units, offering suits of 50, 150 and 300 square meters on a fully-fitted ready to lease basis.
The third quarter saw the delivery of 51,000m2 of office gross leasable area (GLA), 64% being single-owned projects in Tecom, with the remaining 36% being strata titled space in Business Bay, which has been the most active precinct for completions so far in 2016.
While the total office stock in Dubai has now risen to around 860ha, Q3 also witnessed a number of changes of office projects into alternative uses.
Looking ahead, an additional 152,000m2 of GLA is scheduled to be delivered in Q4, almost three times that delivered during Q3. Business Bay continues to be the focus for completions, with projects also expected to complete in Silicon Oasis, the Greens and Tecom.