If Landmark Advisory's November lease guide is to be believed, then office rents in Jumeirah Lake Towers (JLT) have witnessed the most significant fluctuations with the lower rental limit falling by almost 50 per cent to just Dh25 per square foot.
Simple calculation reveals: A 1,000 square feet office can be rented for Dh25,000 per annum compared to advertised rentals for one bed (980 square feet) renting for between Dh45,000 and 50,000.
Jesse Downs, Director of Research and Advisory, Landmark Advisory, said: "These trends are a direct result of the supply pipeline dynamics in each community. In JLT, the majority of supply pipeline has now been handed over, causing the steep declines".
Business Bay, however, has weathered the storm well with declines of seven per cent only, Landmark said.
"The majority of the supply pipeline is still under development in Business Bay. We, therefore, expect rents to continue their downward trajectory with significant declines anticipated in the coming years. Naturally, there are also other factors that will impact rents in each area such as location, infrastructure, and licensing costs and procedures".
According to Landmark, commercial rents have continued to decline since June with the freehold market having borne the brunt of the decline.
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Emirates 24|7
