Etihad Tower Complex Is Attracting Local & International BrandsTuesday, May 29, 2012
According to sources, several local and international retail companies have signed up to open outlets in Etihad Towers. Cartier has signed up to open its largest store in the Middle East. Among the 30 odd names, Salvatore Ferragamo, Bally, IWC and Cartier lend their aura and heritage to the upscale mixed use development at Etihad Towers.
The property manager from Etihad Towers, Richard Foulds, said that all the outlets are pre-let to ensure the mix is right. He added that it was always their intention to create a unique collection of designer stores and the discussions to implement the plan had been started somewhere in the middle of last year.
One high rise commercial development having a mix of local and international brands has 45% occupancy. Foulds also highlighted that we are continuing talks with the smaller international companies which are coming for the first time here, since we have right pricing structures and know the latest trends of the market. He further added that our office plate consists of six units each having 90 square meters of space.
The head of Research and Consultancy at CBRE Middle East, Mat Green, says that with the new supply being added to the market, the office market in Dubai is reaching the peak of its development cycle. This shows a decline of 4% in rents during the Q1 of 2012 as compared to the last quarter. On the other hand, prime properties have shown better stability in their rental values.
He also highlighted that the additional 1.5 million square meters of new accommodation, making around half of the existing stock available in the market, is expected to be handed over during the next 3 years. With the new supply we can expect to see the rental gaps widening between prime and secondary locations in Dubai.
Despite that, the present for the Etihad Towers represent good progress, since the development offers commercial lease for a period ranging from 3-10 years. However, if the tenants sign lease for more than this period, they can win additional discounts. It also highlighted that people believe Etihad Towers is expensive, but it is either competitive or actually cheaper than their competitors in real. The developer is also offering the cross leasing possibility according to which any tenant securing commercial space in the office tower would be given a discount on the residential rents.
Leases have been entered into for 60% of 884 apartments for residential towers. Foulds also said that they are expecting a busy September after a usual slow down during the summer. To provide quality real estate at affordable rates is their top priority and if the market changes dramatically, they will have a second look at their pricing.