1. COMMERCIAL PROPERTY SECTOR; PROSPECTS IN UAE
January 2011

2. KNIGHT FRANK - GLOBAL
Korea
Knight Frank & Rutley was founded in London in 1896.
Knight Frank encompasses 209 offices in 47 countries across six continents.
More than 6,840 professionals handle in excess of US$755 billion (£521 billion) worth of commercial, agricultural and residential real estate annually.

3. KNIGHT FRANK - REGIONAL
Offices in Abu Dhabi and Bahrain.
Teams in Saudi Arabia, Qatar & Kuwait.
KF Service Lines:
Regional Investment
International Investment
Tenant Advisory
Commercial Leasing & Agency
Valuation / Development Consultancy
Corporate Recovery

4. HIGH PROFILE; GLOBAL & REGIONAL PRESENCE
Bahrain Financial Harbour
Bahrain
140,000 sq m
Strategic Landlord Leasing & advice
Empire State Building, New York, USA
290,000 sq m
Strategic Landlord Leasing & advice
Kingdom Tower, Jeddah,
Saudi Arabia
430,000 sq m
Strategic Landlord Leasing & advice
30 St Mary Axe, London
England
76,400 sq m
Strategic Landlord
Asset Management
CMA Head Office Tower, Riyadh, Saudi Arabia
200,000 sq m
Strategic Landlord Leasing & advice

5. UNITED ARAB EMIRATES
Knight Frank and the National Bank of Abu Dhabi have formed a joint venture in the UAE to provide real estate services.
Dubai
Abu Dhabi

6. COMMERCIAL PROPERTY SECTOR; HISTORIC TRACKING

7. HISTORIC OFFICE RENTS Peak AED 5,400 Peak AED 3,200
* Denotes average trend across the market

8. HISTORIC INDUSTRIAL RENTS
Peak Rents AED 700
* Denotes trend across the market including freehold/non freehold and Freezones.

9. THE CRASH

10. Over supply of poorer grade stock
BE AWARE….
Over supply of poorer grade stock
Service Charge
Strata
Title

11. COMMERCIAL PROPERTY SECTOR; TODAY

12. TODAY’S MARKET; OFFICES & INDUSTRIAL
Dubai
Abu Dhabi
Prime Rent: 
AED 1,935 per Sq m
Rental Decrease: 60%
Prime Rent: 
AED 2,000 per Sq m
Rental Decrease: 35%
Prime Rent: 
AED 550 per Sq m
Rental Decrease: 22%
Prime Rent: 
AED 600 per Sq m
Rental Decrease: 25%

13. DUBAI OFFICES; FORECAST
PRIME
GRADE A
GRADE B
All prices are indication of the market

14. ABU DHABI OFFICES; FORECAST
PRIME
GRADE A
GRADE B
All prices are indication of the market

15. DUBAI & ABU DHABI; INDUSTRIAL FORECAST

16. COMMERCIAL PROPERTY SECTOR; THE OPPORTUNITY

17. IT’S A TENANT’S MARKET; BUT TREAD CAREFULLY
Buildings:
Specification: Some very poor buildings
Car parking is paramount when looking at new space
Opportunities to acquire fully fitted space to minimise up front capital costs of moving
Scope to consolidate multiple sites into single tenancies
Stay away from Strata buildings
Market Conditions:
Negotiate up and down rent reviews; especially for larger properties
Be aware of service charges – ensure you get the service which you are paying for

18. IT’S A TENANTS MARKET; BUT TREAD CAREFULLY
Scope to negotiate rent reductions when renewing
Rent frees are getting longer
Dubai; 4 payments & 2 payments in Abu Dhabi
INDUSTRIAL
We would suggest build to suit
Acquire land in freezones to then sale and leaseback.

19. KNIGHT FRANK CAN ASSIST YOU

20. LOCAL MARKET INTELLIGENCE

21. GLOBAL TENANTS LOCAL MARKETS

22. ABU DHABI OFFICES Jazira Towers, Abu Dhabi Joint Leasing Agents
Office & Retail
27,374 Sq m of leasable space
Shell & Core
Abu Dhabi University Tower, Abu Dhabi
Exclusive Leasing Agents
Office & Retail
5,7888 Sq m of leasable space
Shell & Core
Global Tower, Abu Dhabi
Exclusive Leasing Agents
Office & Retail
18,497 Sq m of leasable space
Shell & Core – raised suspended floor
Sama Tower, Abu Dhabi
Exclusive Leasing Agents
Office & Retail
3,388 Sq m of leasable space
Shell & Core
Sheikh Omar bin Zayed Tower, Abu Dhabi
Exclusive Leasing Agents
Office & Retail
5,224 Sq m of leasable space
Part fitted

23. Director of Investment & Leasing
THANK YOU
James Lewis
Director of Investment & Leasing
Knight Frank
Tel: +971 (0)