Seven Tides announces 11% jump in occupancy rates at Ibn Battuta Gate Offices since 2017
Increase driven by interest from SMEs and defies current market dynamics in Dubai commercial real estate market
Seven Tides, the UAE-based developer, has announced an 11% jump in occupancy rates at it Ibn Battuta Gate Offices over the last two years, despite the unbalanced supply and demand dynamics currently being witnessed across Dubai’s commercial real estate market.
Traditionally, office floors in Dubai are traditionally split into three categories, with entry sizes ranging from 300, 700 or 1,500 sqft. In 2017, overall occupancy levels were running at up to 70% on average, the Emirati developer said.
A decision was then taken to completely open up all floors, offering space on request, where practicable, with consolidated and packaged leases, which has subsequently led to a constant flow of enquiries from small and medium enterprises (SMEs), it added in a statement.
Seven Tides CEO Abdulla Bin Sulayem said: “The commercial rental market in Dubai has been somewhat subdued over the recent past due to an element of oversupply and difficult macroeconomic conditions. We decided that by simply discounting rate would only lead to a race to the bottom, so we looked at alternatives.”
“Our flexible office configurations and payment plans have consistently attracted increasing demand from SMEs, which currently make up 95% of all businesses in the country and we have witnessed an 11% increase in occupancy over the last two years,” noted Bin Sulayem.
Occupancy at The Offices at Ibn Battuta Gate is now up to 81% out of a total of 467 units, he added.
Spread across an area of 430,375 sqft, the property includes 24-hour security and maintenance services, paid conference facilities on the 9th floor and an on-site coffee shop, located in the main atrium lobby. In addition, there is ample basement parking along with Robotic parking and full valet parking services.
Currently, 45% of the office space is leased by general trading companies, 15% by technical services and the remainder are occupied by companies operating in the educational, hospitality and tourism sectors, he said.
“Positive cash flow is essential for SMEs in particular start-ups, so a consolidated payment plan is far easier to plan and budget for,” said Bin Sulayem.
Apart from the value aspect, location is always a priority and the offices are located in a prime position, close to the Jebel Ali Free Zones and Expo 2020 site.
They also provide quick and easy access to Dubai Investments Park, Dubai South and Al Maktoum International Airport, with Abu Dhabi just 60 minutes’ drive away – it is also next door to the Ibn Battuta Metro station.
The Residences at Ibn Battuta Gate have also had a positive impact on the demand for offices at the development, as outlined by Bin Sulayem:
“There has been a growing trend of developers offering a range of innovative living solutions, allowing residents to live and work in the same space, something we have been showcasing, with great success, for a number of years,” stated the top official.
“From as little as Dh65,000 per annum tenants can lease a one-bedroom apartment adjacent to their office,” he added.
Looking at lifestyle choices, tenants can also take advantage of the facilities and amenities within the five-star Mövenpick Hotel Ibn Battuta Gate, just opposite, which offers preferential rates on F&B to all tenants. In addition, the popular Ibn Battuta Mall, the largest themed mall in the world which has close to 400 stores as well as a multi-screen cinema and a comprehensive food court, is only a short walk away.
