Ownership issues a hurdle for renting office space

Companies with large office space requirements will find it challenging to strike deals as leasing in today's office market is becoming a challenge especially where single buildings have multiple ownership, said a property consultancy firm.

Brett Whalley, Head of Commercial Leasing, Asteco, said: "In Dubai, many office buildings were sold off-plan, on a floor-by-floor basis or even by the individual office unit to multiple owners with little thought given to how they were to lease in the future and sometimes with no pantries or washrooms."

He said as office developments enter handover stages to owners, it may be difficult for individual landlords to organise co-ordinated leasing solutions to firms with large space requirements.

"Large tenants, especially those who require a floor or contiguous vertical floors will ideally want to deal with one landlord," he said.

Office rents in Dubai, sparked by investor speculation, multiplied four-fold in less than three years, he said.

"Large tenants want a streamlined process, from signing the lease to day-to-day management issues," Whalley said.

Developments such as Ibn Battuta Gate will not suffer this problem due to its single ownership structure, he said.

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