Political turmoil and continued economic uncertainty in the Middle Eas
t has helped make the UAE appear a stable and attractive option for company offices.
With office rents in the emirates falling considerably over the past few years and a solid, quality infrastructure already in place, commercial property
in the region is now an affordable and realistic prospect, CB Richard Ellis said.
The consultancy's latest Global Office Market View noted that cheaper rents mean that tenants are increasingly looking to secure long-term deals, which is helping to restore confidence in the markets. However, while the main characteristic of the market is a fall in operational costs this has triggered a rise in transaction levels.
"Elongated terms of between five and ten years are now becoming more prevalent as both landlords and tenants seek to reduce their risk exposure," Mat Green, head of research and consultancy for CBRE, said.
Meanwhile, Mr Green added that for existing tenants the key trends have been towards reducing operational costs, flight to quality and greater lease security.
- Wednesday 30 March 2011