Latest news with #AdamWynne
Arabian Business
29-04-2025
- Business
- Arabian Business
Saudi warehouses hit 98% occupancy amid industrial boom
Saudi Arabia's industrial and logistics property market is approaching full capacity, with warehouse occupancy reaching 98 per cent in Riyadh and 97 per cent in Jeddah, according to a new market review published by Knight Frank on Tuesday. The property consultancy's Saudi Arabia Industrial and Logistics Market Review shows the Kingdom's push towards becoming the Middle East's leading industrial hub is driving rapid growth in the sector, with 1,346 new industrial licences issued in 2024 and capital investment in newly licensed factories reaching SAR 50 billion. Warehouse space in Riyadh has seen the Kingdom's steepest rental growth, with average rates jumping 16 per cent year-on-year to SAR 208 per square metre, while prime properties now command over SAR 250 per square metre. Some districts, including Al Masani, Al Bariah, Al Faruq and Al Manakh, experienced even sharper increases exceeding 20 per cent. 'Leasing activity remains strong across most of Riyadh's submarkets, with demand continuing to outpace supply despite elevated rents,' said Faisal Durrani, Partner and Head of Research for MENA at Knight Frank. Jeddah's market showed similar trends, with average rents reaching SAR 238 per square metre and the Al Khomrah district maintaining its position as the city's dominant logistics hub, accounting for approximately 82 per cent of the port city's total warehouse stock. The report identifies several drivers behind the sector's growth, including government initiatives like the National Industrial Development and Logistics Program (NIDLP), which aims to increase the transport and logistics sector's contribution to GDP from 6 per cent in 2021 to 10 per cent by 2030. New Special Economic Zones (SEZs) and foreign direct investment reforms are also attracting international businesses, with significant deals struck in 2024 including partnerships between Saudi property developer Kaden and global logistics provider DB Schenker, as well as agreements involving GFH Financial Group, Panattoni Saudi Arabia, Arcapita Group Holdings, and Saudi firm Rikaz. 'Saudi Arabia remains a pivotal hub for global business expansion, with the Kingdom continuing to attract interest from around the world,' said Adam Wynne, Head of Commercial Agency at Knight Frank. According to the report, the number of licensed factories in Saudi Arabia is projected to increase from 12,895 to 36,000 by 2035, with sustainability emerging as a major market driver as companies like Maersk and Agility Logistics pioneer green infrastructure initiatives.
Zawya
10-03-2025
- Business
- Zawya
Knight Frank: Dubai's office rents climb 9.1% in H2 2024 amid rising demand
Prime office occupancy levels are above 95% in key business districts like the DIFC and Business Bay Business services, real estate, and the banking & finance sectors drove the new prime office demand in 2024 Dubai: In H2 2024, average office lease rates across Dubai's key submarkets showed strong growth, rising by an average of 9.1% in H2 2024, with the highest rental growth being registered in Trade Center District (96%), according to the H2 2024 Dubai Office Market Review by global property consultant Knight Frank. Faisal Durrani, Partner – Head of Research, MENA, commented: 'Dubai's office market continues to experience rising levels of demand in the form of new business entrance as well as expanding businesses. This rising demand means that prime office space is in exceptionally short supply city-wide. 'The narrative in Dubai is very different than the global office story. With supply continuing to lag demand and be snapped up during the construction of new office buildings, we expect rents to sustain their upward trajectory. Despite recent growth, office rents still trail pre-global financial crisis. Indeed, prime rates in the DIFC are still about 50% below 2009 levels.' GROWING DEMAND AND UPCOMING SUPPLY During 2024, Knight Frank recorded 1.28 million sqft of new office space demand, a 64% increase on 2023. The top sectors contributing to the demand are business services, real estate, and the banking & finance sectors, which collectively contributed to 843,111 sqft of new demand in 2024, each representing 23%, 23%, and 20% of total requirements, respectively. Knight Frank projects that Dubai's prime office supply will reach approximately 8.2 million between 2025 and 2028. This is up 86% when compared to the 4.4 million sqft delivered between 2021 and 2024. The DIFC currently reports nearly 100% occupancy as of Q4 2024, while 17 Grade-A assets on Sheikh Zayed Road tracked by Knight Frank boast an average occupancy of 95.4%. The bulk of new supply will come from key projects including DIFC Square (5.4 million sqft), TECOM (650,000 sqft) and Aldar's new development on Sheikh Zayed Road (88,000 sqft). OUTLOOK Generally, occupancy rates in the DIFC, Downtown Dubai, and Business Bay are currently between 95% and 99%, driven by robust tenant demand and limited new space. As a result, rents have surged significantly - rising by an average of 46% in Business Bay alone. With prime office space in Dubai's key business districts nearing full capacity, companies are exploring alternative locations for expansion. Areas such as Dubai Science Park and Expo City are attracting heightened interest, thanks to their state-of-the-art facilities and attractive rents. Adam Wynne, Partner – Head of Commercial Agency, Dubai, explained: 'Occupiers remain driven by quality and we are seeing businesses migrate outside of central Dubai to newer locations where office space is available. With prime space in Dubai's key business districts nearing full capacity, companies are finding new areas to expand into. 'Locations like Dubai Science Park and Expo City are experiencing increased interest, with occupiers drawn by state-of-the-art facilities and attractive rents.'
CBC
05-03-2025
- General
- CBC
Chinatown-Kensington 'zombie' house deteriorating from neglect, neighbours say
Homeowners and history buffs in the Kensington-Chinatown neighbourhood say they're tired of watching one of the area's oldest homes slowly deteriorate. The 152-year-old structure at 106 Huron St. was among the first houses built on the street but has been vacant and slowly crumbling for years. The two-storey Victorian home now has a patchwork roof, broken brickwork, graffiti, bent railings and holes in the hoarding used to keep trespassers out. "This is heartbreaking," said Adam Wynne, chair of the Toronto and East York Community Preservation Panel, standing in front of the building. "This could be a real gem if it was fixed up." Those concerned about the site say city regulations don't put enough responsibility on property owners to maintain vacant buildings in a liveable state, and want to see higher standards and enforcement. They want either the city or the property owner to step up and restore the house. According to city regulations, the owner of a vacant house is only required to ensure that entranceways are boarded up and the utilities are disconnected. Owners of occupied buildings have to satisfy a list of standards that's more than 30 items long and covers everything from how the property is landscaped to the condition of the mailbox. Owners of a third category of buildings — those designated heritage houses — are also held to a higher standard than unoccupied buildings, according to the city's municipal code. Those properties' heritage features, which include "roofs, walls, floors, retaining walls, foundations and independent interior structures," must be maintained. Building doesn't have heritage status Sanctions from the city against property owners who fail to maintain property standards can include orders to repair the property, both inside and out, and fines of up to $1,000, according to the city's website. But because 106 Huron St. has not yet been designated a heritage building, it's not subject to those more stringent protections, according to Wynne. "In the city's eyes, it's just another vacant building," he said. Calls and emails to 106 Huron Ltd., the owners of the property, have not yet been returned. Property records show the company bought the property in 2017 for $950,000. Since then, the building has "rapidly deteriorated and is undergoing a demolition by neglect," according to the Architectural Conservancy of Ontario in its online description of the site. The conservancy says the property was the subject of a development application by the owner in 2019, but that application appears to have been dropped by May 2022. Even so, the ACO writes, "this application indicates an interest by the present owner(s) in re-developing the property and that the pre-existing house at 106 Huron Street, Toronto is at increased risk of demolition." Wynne says he asked the city to have 106 Huron designated a heritage building in 2020, which would have given it greater protection against neglect, but the process appears to have stalled. A statement from city staff notes the building was nominated for heritage status but says "a nomination for heritage registration is not an application. "They act as a helpful flag of community interest, provide valuable research, are on file, and will inform the heritage evaluation of their respective properties. The property at 106 Huron Street has not yet been evaluated." Group eyeing buildings that can be 'brought back to life' Serena Purdy, chair of the non-profit Friends of Kensington Market, says if vacant buildings were maintained in a liveable state, they could make a dent in the housing shortage. Purdy says her group is currently surveying the area to identify abandoned properties that are so run down that they're a detriment to the area. That list of "zombie properties" will then be turned over to the Kensington Market Community Land Trust, which works to create affordable housing and commercial space. "We have been keeping an eye on properties that are dead but that can be brought back to life, for the community to use... for homes for people to live in during a housing crisis," Purdy said. City spokesperson Shane Gerard told CBC Toronto in an email that owners of vacant properties are not governed solely by the bylaw that regulates unoccupied properties. They're also subject to the vacant property tax which "discourages property owners from leaving their homes goal of the program is to help increase the housing supply in Toronto and help make homes more affordable." But Wynne says from what he sees, the vacant home tax — three per cent of a property's assessed value — isn't convincing enough property owners to get their derelict buildings into shape. Councillor will seek authority to order demolitions Coun. Dianne Saxe, who represents the neighbourhood, agreed in an email to CBC Toronto that more needs to be done to address the city's derelict houses. "I appreciate the Kensington Market community bringing the city's attention to the problems posed by these derelict properties," she wrote. "That an unoccupied lot like 106 Huron can be allowed to rot and fester in the middle of downtown greatly impacts neighbouring residents and businesses... I'll work with my council colleagues to ask the province for authority to require demolition of derelict buildings." Two doors down, Leslie Li owns an investment property and says 106 has been an eyesore for years. "Safety is my biggest concern," Li said, citing trespassers and pests.
ME Construction
18-02-2025
- Business
- ME Construction
Demand for industrial & logistics space in Dubai increased by 225% in 2024
Industry News Demand for industrial & logistics space in Dubai increased by 225% in 2024 By Rents are projected to rise by 2% per month throughout 2025 in both Abu Dhabi and Dubai, driven by tight supply and strong demand, reflecting market confidence The UAE's industrial and logistics sector experienced an unprecedented 225% surge in demand in 2024, with Dubai's new industrial space requirements reaching 40.6m sqft, according to Knight Frank's Dubai and Abu Dhabi Industrial Markets Review 2024/2025. The surging demand levels come hot on the heels of the UAE government's announcement of plans to grow the size of the nation's logistics sector from US $34.8bn to $54bn in the next seven years, through the establishment of the UAE Logistics Integration Council. Faisal Durrani, Partner, Head of Research, MENA said, 'In 2024, the UAE achieved significant economic milestones, reinforcing its position as a global trade and investment hub. The non-oil PMI reading rose to 55.4 in December from 54.2 in November, marking 48 consecutive months above 50, signaling sustained business expansion, which is translating into escalating levels of demand for industrial and logistics space. Separately, foreign direct investment and international trade also recorded substantial growth last year, further catalysing new space requirements.' Demand peaked in Q4 2024, accounting for 34% of total requirements during 2024, Knight Frank says, for 2024 as a whole, the manufacturing (19%) and logistics (18%) sectors led demand in Dubai. Retailers & traders (13%), business services (11%), and construction & real estate (11%) then followed. The sharp increase in demand is underpinning a market-wide supply shortage, with new market entrants and expansion efforts continuing to fuel rental growth. Adam Wynne, Partner – Head of Commercial Agency, Dubai explained, 'Rents and capital values have maintained an upward trajectory. Industrial & logistics rents in Dubai surged by 33% year-on-year, with vacancy rates at just 3%. While developers are working quickly to respond to the rising level of requirements, the city's 2040 Urban Master Plan promises to deliver a new wave of industrial and logistics demand. The 2040 masterplan emphasises the development of a world-class logistics network, for instance. This includes the expansion of existing ports and airports, the creation of new transport corridors, and the implementation of cutting-edge logistics technologies.' Dubai's industrial areas recorded significant rental growth in 2024, Al Quoz (Grade A): +45%, Dubai Investments Park (DIP): +48%, Dubai Industrial City: +38%, Dubai South: +26%. In Abu Dhabi, KEZAD Mussafah (ICAD) led rental growth, with rates surging 57% while Abu Dhabi Airports Free Zone (ADAFZ) recorded the highest rents. During H2 2024, new large-scale industrial and logistics projects were announced in the Al Falah area, east of Zayed International Airport. Spanning 8.3sqkm, Al Falah is emerging as a key logistics hub for the capital. The new rail network will enhance supply chain efficiency, lower transportation costs, and offer a sustainable alternative to road freight, further boosting the appeal of underutilised industrial areas, as per Knight Frank. One of the key milestones in 2024 was the completion of the Etihad Rail network, first announced in 2008. The rail network has established a cargo link between the emirates, driving increased demand around rail hubs. Knight Frank expects Etihad Rail to enhance the UAE's industrial landscape by creating connectivity between industrial zones nationwide. This infrastructure is likely to increase demand in lower-rent areas, reducing price disparities across various industrial zones. Wynne added, 'Another game-changer will be the planned relocation of the city's primary airport to Al Maktoum International in Dubai South by 2034. This includes the expected transfer of all Emirates Airlines operations which is already impacting on the availability of land for industrial and logistics use. This move, while hugely positive for the future of the city and its economy, will put further upward pressure on rents and values as Dubai continues to grapple with a shortage of prime land and high-quality warehousing.' Maxim Talmatchi, Associate Partner, Head of Industrial & Logistics, UAE, said, 'Land availability remains critically constrained, with most industrial parks operating at full capacity. The limited remaining plots are prioritising end-users, restricting speculative development opportunities. New supply is anticipated in late 2025 and beyond but is unlikely to disrupt the supply-demand balance. We expect rapid absorption of the 3.65m sqft of new space currently being developed across Dubai and Abu Dhabi which is due for delivery over the next two years.' Rents are projected to rise by 2% per month throughout 2025 in both Abu Dhabi and Dubai, driven by tight supply and strong demand, reflecting market confidence. In the investment market, further yield compression is likely, Knight Frank says, with prime net initial yields projected to fall below 8%, signalling sustained investor confidence in the sector.
