Innovative property developer Seven Tides, witnesses 11% increase in occupancy over two years, while still maintaining yield at Ibn Battuta Gate Offices
Dubai, United Arab Emirates, 27 October 2019: UAE-headquartered upscale property developer Seven Tides has announced an 11% increase in occupancy over the last two years, at its Ibn Battuta Gate Offices, despite unbalanced supply and demand dynamics, currently being witnessed across Dubai’s commercial real estate market.
Seven Tides’ strategic approach was simple. Office sizes were traditionally split into three categories, with entry sizes ranging from 300, 700 or 1,500 sqft and at the time in 2017, overall occupancy levels were running at up to 70% on average. A decision was then taken to completely open-up all floors, offering space on request, where practicable, with consolidated and packaged leases, which subsequently led to a constant flow of enquiries from Small and Medium Enterprises (SMEs).
Abdulla Bin Sulayem, CEO, Seven Tides, 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,” added Bin Sulayem.
Occupancy at The Offices at Ibn Battuta Gate is now up to 81% out of a total of 467 units. 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.
Potential tenants can secure a 12-month leasing agreement in a flexible open plan, fitted and ready-to-move-in office space at a competitive rate of AED 90 per square foot for offices under 1,000 sqft and all leasing contracts are fully inclusive of utilities such as DEWA and cooling charges as well as MPOWER plus service charges.
“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.
Spread across an area of 430,375 sqft, the offices include 24-hour security and maintenance services, paid conference facilities on the 9th floor and an on-site Lime Tree Café - coffee shop, located in the main atrium lobby as well as ample basement parking along with Robotic parking and full valet parking services.
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. From as little as AED65,000 per annum tenants can lease a one-bedroom apartment adjacent to their office,” he said.
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.