JLL: Dubai remains competitive for premium office space
Occupancy cost for premium office space in Dubai has remained unchanged during 2017, though rates have increased by an average of 4% in US dollars in other global cities
Occupancy cost for premium office space in Dubai has remained unchanged during 2017, though rates have increased by an average of 4% in US dollars in other global cities.
As with other global markets, the level of vacant space within premium buildings in Dubai remains below that in the general market, illustrating the demand among tenants for space in the best quality buildings, JLL reports.
Dubai’s Dubai International Financial Centre (DIFC) ranks 19th of the 54 global office markets covered by JLL’s Premium Office Rental Tracker.
Dubai’s premium office space is set to cost less than one third of the most expensive location worldwide, which is central Hong Kong, and is 50% of that in New York, Midtown and the West End of London.
Toby Hall, head of Office and Business Space Leasing, UAE, JLL said” “Corporates are becoming increasingly aware of how their real estate can be a powerful tool in the war for talent and in increasing employee productivity, and this is impacting decisions on location and office types.”
According to recent JLL research, only half of 7,000 employees globally and regionally felt their workspace allowed them to work completely effectively, which is an important statistic for both corporates and investors who want to future proof themselves.
Hall added: “The DIFC in Dubai is a great example of a market which offers premium office space in a competitive city which attracts global talent and innovation.
“The demand to have more premium office space has significantly increased and we will be observing an upsurge in supply of improved quality space across Dubai over the coming few years.”
The shortage of premium space in the DIFC has encouraged developers to commence or complete a number of new projects in this location in recent years.
The most prominent of these is ICD Brookfield Place, which will be benchmarked against the British Council for Offices (BCO) and the Middle East Council for Offices (MECO) Best Practice design guidelines.
The project is being developed in a joint venture between the Investment Corporation of Dubai (ICD) and Brookfield Property Partners.
“Upon completion, ICD Brookfield Place will set a new benchmark for the quality of office space in Dubai, with more than 96,000M2 of premium office space spread across 53 levels,” said Hall.
The annual Premium Office Rent Tracker (PORT) compares premium office occupancy costs across 54 markets in 46 major world cities.
It finds that the Eurozone offers among the most competitive costs globally for premium space, averaging $63 per square foot per year, compared to $85 in the Americas and $111 in Asia Pacific, Warsaw ($40), Brussels ($48), Amsterdam ($49), La Défense, Paris ($52) and Berlin ($56) are named as some of the best value-for-money markets in Europe.