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Qatar’s office space supply grows to 4.5 million sqm

Qatar’s office space supply grows to 4.5 million sqm

Rahul Preeth
Doha
Qatar’s overall office supply has grown to over 4.5 million square metres, a real estate research report has said.
Approximately 45 percent of the 4.5 million sqm is situated in West Bay and Lusail, said the third quarter real estate review published by research firm Cushman & Wakefield.
New supply in the Marina district has increased competition within the market and has seen rental levels continue to decline throughout 2019, it said.
‘A’ category standard offices in West Bay are now available between QR100 and QR130 per sqm per month, the report said, adding that large-sized, ‘shell and core’ office accommodation in West Bay can be secured at a discount, due largely to limited demand for such accommodation and the capital expense associated with the fitout.
“Service charges in West Bay remain relatively high and can increase overall occupational costs relative to more peripheral locations where service charges are often included in the rent.” Offices in areas such as Al Sadd, Airport Road and C-Ring Road are often now offered at monthly rates between QR80 and QR100 per sqm, depending on size, quality, fit-out and location with at least one month rent-free available on most occasions, the research report said.
“Many high street showrooms typically contain independent office accommodation at the upper floor levels, which is offered at monthly rates between QR60 and QR80 per sqm.”
Demand for offices through the third quarter has largely been concentrated around smaller office floorplates of between 150 and 300 sqm, the report said.
“This demand is predominantly generated by companies active in the IT and Technology sectors as well as companies wishing to operate in Qatar in the lead up to FIFA 2022 World Cup.
“As a result, many landlords have been offering serviced smaller office suites to boost their occupancy, reflective of the nature of current demand. Several new office buildings in Lusail have successfully leased and sold small office units in recent months, catering to this demand.”

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