Old office spaces

Ismail Al Hammadi

February 13, 2024

Just as there are old residential properties, there are old commercial properties, especially office spaces, which today are no longer sufficient for their purpose, and do not meet modern work needs, the requirements of current companies, and modern administrative and office work. In light of the new requirements, many old office spaces are exposed to the risks of low occupancy and declining returns, and their owners suffer difficulty in marketing and renting them, due to the reluctance of investors, owners of companies and private institutions, because they do not serve their needs in terms of design and quality, and they lack environmentally friendly and sustainable construction standards. In addition to the emergence of new specialized work areas that companies have become more preferable.

These spaces need comprehensive renovation, in order to be compatible with modern labor market trends, and the owners must reconsider them again, to compensate for the loss of revenues, and bring them to a level close to or equal to the rents in the new areas.

If it is renovated and put back on the market again, the stock of office space will increase, and the number of options available to company owners will increase, especially since some of them are located in very vital areas of the city, which may make a difference for investors and owners alike when using them.

The main point that I would like to point out here is that, before starting any renovation, owners must analyze the current needs for office space, understand what the market requires, the type of companies that are compatible with the nature of the area in which these spaces are located, and the sector most in demand for offices in this location. There is a comprehensive study that the owners must carry out, in order for the renovation plans to be successful. In this case, the owner does not rely only on himself to analyze the market. It is better for him to seek the help of experts and consultants in the field of real estate consulting and real estate development consulting, to benefit from their experience in renovating old properties.

In some areas that are considered one of the most important arteries for attracting business in Dubai, the average age of office buildings in them has now reached more than 20 years, and therefore they now require the attention of their owners to work on renewing and developing them in accordance with the requirements of those areas in which they are located, in order to preserve On her activity.

Bottom line: The old office space, and its failure to keep up with the demand and needs of company owners, despite its presence in vital locations that generate good returns for its owners and users, poses a difficult challenge for owners, and the alarm bell must be sounded to draw attention to it.

ismailalhammadi@

Ismail.alhammadi@alruwad.ae

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