Knight Frank witness the expansion plans of logistics companies in Dubai
- United Arab Emirates: Thursday, October 04 - 2012 at 09:27
- PRESS RELEASE
Enquiries for 50,000 -100,000 sq ft logistics facilities increased during the first half of 2012 according to a report released by Knight Frank. H1 2012 also saw the stabilisation of rents for class 1 logistics facilities in the established developments such as JAFZA and DIP.
This is testament to how quality infrastructure with well designed products in established areas attracts occupiers and maintains strong occupancy rates.
The completion of the 515,000 sq ft Caterpillar facility in JAFZA and Nestles announced $135 million manufacturing facility in DWC really shows that confidence is coming back to Dubai as a trading and manufacturing hub.
Through out the summer months enquiries from FMCG and F&B logistics users remained high both in and out of the free zones.
The shortage of ready built temperature controlled stock that meet the requirements of these enquiries has pushed some users into short terms leases on lower quality facilities. However the demand for high quality temperature controlled facilities will hopefully be met through further developments in JAFZA and the general Jebel Ali Area.
Edward Batten, Manager, Knight Frank said: "The general logistics market is showing some very positive signs with cargo and freight activity looking strong. We have received a strong increase in enquiries for 50,000 -100,000 sq ft units and larger, 90% of these enquiries are from logistics companies that are winning new business. We see this as a pivotal point in the logistics property market cycle."
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