{"id":29379,"date":"2016-10-11T00:19:34","date_gmt":"2016-10-10T17:19:34","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=29379"},"modified":"2016-10-10T22:22:49","modified_gmt":"2016-10-10T15:22:49","slug":"demand-shrinks-for-large-offices-in-dubai","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/demand-shrinks-for-large-offices-in-dubai\/","title":{"rendered":"Demand shrinks for large offices in Dubai"},"content":{"rendered":"


\nThe low oil price, cuts in government spending and a global economic slowdown are dampening global companies’ appetite for large offices in Dubai as some occupants are forced to cut staff numbers and consolidate offices. According to JLL’s latest report, demand in Dubai for offices of more than 10,000 square feet plunged in the third quarter of this year compared with a year earlier, prompting some landlords to reconfigure space into smaller units. It said that fewer than 12 per cent of all office deals signed in Dubai during the first nine months of this year were for lettings of more than 10,000 sq ft, compared with 30 per cent the previous year. JLL said that the average amount of office space leased in Dubai had fallen in the first nine months of this year to 5,900 sq ft from an average of 14,500 sq ft for the whole of last year as occupiers with larger space requirements had shied away from committing to new deals. It said that the lack of large office requirements had already prompted two of the city’s highest profile landlords, Emirates Reit and Emirates Real Estate Fund, to configure parts of their portfolios into smaller units of less than 3,000 sq ft. “This reflects occupiers’ caution in the face of more challenging economic conditions in both Dubai and across the broader region,” said Craig Plumb, the head of research in JLL’s Dubai office. “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.” JLL pointed to Emirates Reit’s decision to divide four floors of its Index Tower in DIFC into fully fitted, ready to lease office suites of between 50 sq metres (538 sq ft) and 300 sq metres, most of which are now leased.Emirates NBD, which owns three floors in Burj Daman in the DIFC through its Emirates Real Estate Fund, is pursuing a similar strategy, offering units of between 2,500 and 3,000 sq ft. “It is true to say that there are fewer of these 10,000 sq ft office requirements than there were a year or two ago because companies in the oil and gas sector, banking and finance and real estate and construction are feeling pressure to make savings,” said Paula Walshe, the director for corporate international services at Cluttons. “But we are still seeing companies in other sectors such as pharmaceuticals, technology and law expanding in Dubai,” she said. Economic sentiment in the UAE has been somewhat dampened this year as the low oil price and strong US dollar have combined with global eco\u00adnomic uncertainty to worry business leaders.The UAE purchasing managers’ index (PMI), which covers manufacturing and services, has averaged just 53.8 so far this year compared with 56.0 last year and 58.1 in 2014. A figure above 50 means businesses in the country are expanding, while below 50 signals a contraction.lbarnard@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Demand shrinks for large offices in Dubai<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The low oil price, cuts in government spending and a global economic slowdown are dampening...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-29379","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-7DR","jetpack-related-posts":[{"id":30341,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/office-rents-in-dubai-continue-to-fall\/","url_meta":{"origin":29379,"position":0},"title":"Office rents in Dubai continue to fall","date":"October 17, 2016","format":false,"excerpt":"\r Office rents in Dubai continued to come under pressure in the third quarter of the year as companies retrenched staff and considered future strategy.According to the latest Dubai Office Report from Core Savills, average office rents in nearly half (six) of the submarkets the broker analyses fell during the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41600,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-muted-market-for-new-offices-leads-to-rent-declines\/","url_meta":{"origin":29379,"position":1},"title":"Dubai's 'muted' market for new offices leads to rent declines","date":"January 23, 2017","format":false,"excerpt":"\r Activity remains \"muted\" in Dubai's office market, with a majority of districts in the city reporting flat or declining rents, according to Cluttons.The firm's Spring 2017 Dubai Office Market Bulletin reported declines in top-band rents in 15 out of 23 submarkets monitored, and increases in only two - DIFC,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7754,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/office-rents-in-prime-dubai-sites-costly-but-rates-fall-elsewhere\/","url_meta":{"origin":29379,"position":2},"title":"Office rents in prime Dubai sites costly but rates fall elsewhere","date":"March 13, 2016","format":false,"excerpt":"\r \r Property developers in Dubai will complete another 450,000 square metres of office towers this year, putting more pressure on rents and potentially giving relief to businesses affected by tougher economic conditions.The glut of new stock equates to 7 per cent of the city's total 6.61 million sq metres\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41572,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-muted-office-market-leads-to-rental-declines\/","url_meta":{"origin":29379,"position":3},"title":"Dubai's 'muted' office market leads to rental declines","date":"January 23, 2017","format":false,"excerpt":"\r Activity remains \"muted\" in Dubai's office market, with a majority of districts in the city reporting flat or declining rents, according to Cluttons.The firm's Spring 2017 Dubai Office Market Bulletin reported declines in top-band rents in 15 out of 23 submarkets monitored, and increases in only two \u2014 DIFC,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4914,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/lenders-more-cautious-in-funding-dubai-office-tower-projects\/","url_meta":{"origin":29379,"position":4},"title":"Lenders more cautious in funding Dubai office tower projects","date":"February 16, 2016","format":false,"excerpt":"\r \r Developers of commercial offices in Dubai increasingly need to have pre-lease deals and occu\u00adpiers signed up before construction work begins to secure funding, according to Cluttons. \"I think now if you were to go to a bank and say: 'our plan is to buy this land, build a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":170810,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-office-rents-jump-32-4-per-cent-to-61-per-sq-ft-as-commercial-property-deals-reach-3-38bn\/","url_meta":{"origin":29379,"position":5},"title":"Dubai office rents jump 32.4 per cent to $61 per sq ft as commercial property deals reach $3.38bn","date":"March 5, 2026","format":false,"excerpt":"\r Dubai office rents up 32 per cent to $61 per sq ft in 2025 as demand surged and supply tightened, says Arabian Gulf Properties The post Dubai office rents jump 32.4 per cent to $61 per sq ft as commercial property deals reach $3.38bn appeared first on Arabian Business:\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/29379"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=29379"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/29379\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=29379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=29379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=29379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}