Cheapest office space on Sheikh Zayed Road?

Jumeriah Lake Towers (JLT) offers the lowest office rents if compared with other commercial spaces on the Sheikh Zayed Road.

A quick comparison with other places such as DIFC, Business Bay and commercial places on the SZR show that JLT is a good option for those looking on a budget.

“Office rents in JLT are in the range of Dh45 per sq ft to Dh85 per sq ft except Almas Tower which is above Dh100 per sq ft. Rental along the SZR is between Dh85 to Dh135 per sq ft. Rentals in DIFC is in the range of Dh180 to Dh260 per sq ft and in Business Bay it is between Dh50 to 90 per sq ft,” Porush Jhunjhunwala, Head of Better Commercial, Head Office told Emirates 24|7.

According to experts in the industry, commercial rents in the city have not seen any fluctuations. “The rentals have been flat over the last one year and we have not seen any increase. For offices, it is still a buyer’s market and landlords continue to give extended rent free period and fit out allowance to attract tenants,” added Jhunjhunwala.

Likewise, the current vacancy rate also remains unchanged as compared with the year before. “The vacancy rate continues to be around 45 per cent which was more or less same a year earlier as more projects were handed over, although we have seen absorption of 2.5 million sq ft of office space last year,” said the Better Homes expert.

According to Asteco, the commercial market in Dubai still has a long way to go as oversupply will continue to adversely affect rates, unlike the residential sector, which seems to be stabilising/recovering.

“Pending and upcoming supply has resulted in office rental rates across various locations in Dubai contracting by 1 per cent despite healthy enquiry and transaction levels. It should be noted, however, that popular business districts with limited commercial space fare well and generally achieve high occupancy rates. Office sales prices experienced marginal declines of 2 per cent on average as a result of low transaction activity in areas such as Business Bay and DIFC which contracted by 7 and 6 per cent respectively,” read the Q1 2012 report by Asteco.

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