By Neeraj Gangal
Office sector is a tenant's market as fresh supply floods already saturated market, says report
Landlords in Bahrain’s commercial sector are offering
rent-free periods of up to five months in a bid to retain tenants in the Gulf
state’s saturated office market, a report has said.
The already glutted commercial sector has seen a
“significant” increase in fresh supply entering the market, causing a sharp
decline in rental rates and occupancy levels, said real estate firm CBRE.
“Recognising that the office space sector is now a tenant’s
market, landlords are increasingly incentivising tenants with rent-free periods
of up to five months,” analysts said.
Properties in Bahrain’s Diplomatic Area have been
particularly badly hit, as the area continues to suffer from chronic parking
shortages and traffic congestion, analysts said.
Tenants are increasingly relocating to the Seef District of
Bahrain, the report said.
Bahrain office market continues to be largely price-sensitive, consequently
international quality ‘prime’ office space buildings such as Bahrain Financial
Harbour and the World Trade Centre continue to struggle to achieve full
occupancy,” the report said.
mere 10 percent premium over ‘local prime’ space, occupancy issues continue to
loom in both properties.”
The same trend will run through Dubai soon. Look to JLT and Business Bay...just two projects that are having tremendous trouble attracting tenants. There are lots more in Dubai having issues attracting tenants. Some in JLT have offered free annual rents on the provision that the tenant pays the community fee.
Its got bad but the worst is yet to come...and its coming soon. By October 2011 the Dubai property scene will be a different picture. Much worse.
To Simon- No one is offering rent free in JLT or Business Bay in exchange for community fees - absolute rubbish.
Mr Jones sir...ref JLT, you are absolutely wrong!
The basic premise of my comment stands and so too does the fact that JLT retail and office space HAS been advertised by private individuals as described.