Quarterly Report Qatar Q3 2021: Office Market Overview – Cushman & Wakefield Qatar

Press Releases

November 4, 2021

Quarterly Report Qatar Q3 2021: Office Market Overview

New office deals in the pipeline in Lusail and West Bay

Cushman and Wakefield estimate that overall leasable office
supply in Qatar is in the region of 5 million sq m, of which 49%
is in West Bay, Lusail and Msheireb – Doha’s prime commercial
districts.

The majority of new office construction has taken place in Lusail,
where existing supply has now surpassed 600,000 sq m. Supply
in the Marina District and Energy City will soon be supplemented
by development in Lusail Towers and Commercial Boulevard,
which are expected to provide more than 500,000 sq m of new
office space.

While leasing activity has remained low throughout the summer
months, Cushman and Wakefield have represented a number of
corporate occupiers who expect to take occupation of new office
space in West Bay and Lusail in the coming months. While many
international occupiers put office requirements on hold
throughout the COVID-19 pandemic, there are signs that
companies are now looking to secure additional space to meet
their future requirements.

New demand is increasingly shifting to Lusail’s Marina District,
where newer, high-specification buildings are available at
attractive rents. The new district also offers greater car parking
availability, and infrastructure provisions.

Msheireb Downtown’s designation by Qatar Free Zone Authority
as a ‘Free Zone’ is likely to see demand from international
occupiers increase for this development. Existing occupiers
include Google and also Wolf Group, a 3D Printing and
Digitalization Hub, who acquired space in the Design District in
Q3.

Cushman and Wakefield estimate that approximately 20 – 25%
of supply in West Bay and Lusail is now vacant and available to
lease. This figure is likely to increase as upcoming new supply
is greater than the anticipated demand. Any increase in the
vacancy rate is likely to result in rents remaining flat or falling
further in the coming year.

Prime office rents in West Bay now range from QAR 100 to QAR
130 per sqm per month exclusive of service charges. Office
spaces leased as ‘shell and core’ can be secured for less than
QAR 90 per sq m per month.

Office suites in Lusail usually command rents of between QAR
80 and QAR 120 per sq m per month; however, we expect rents
to match those in West Bay soon as occupancy rates increase
in the area.

Office rents in secondary districts such as Old Salata and Al
Sadd range from QAR 60 to QAR 80 per sq m per month, with
rent-free incentives also available to attract new tenants.

 

Cushman & Wakefield Quarterly Report Qatar Q3 2021

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