Average rental for Jafza logistics facilities has risen

However, new Knight Frank report says demand is still strong.
Logistics, NEWS


The average rent for high quality logistics facilities in Jebel Ali Free Zone rose to circa Dh33 per sq ft during the first half of 2013, according to a report released by Knight Frank.

H1 2013 saw strong absorption figures with Knight Frank leasing 300,000 sq ft in JAFZA year to date.

The report identified several other trends: The general excitement surrounding Dubai’s Expo 2020 bid, increased activity at Al Maktoum International Airport and the increase in container capacity at Jebel Ali Port has attracted new occupiers and expansion by existing occupiers to both JAFZA and DWC.

Continuous improvement in infrastructure is underpinned by UPS’s expansion into 160,000 sq ft and really shows confidence in JAFZA and Dubai as a logistical hub.

Through the first half of the year free zone enquiries and activity remained high with Hellmann Worldwide Logistics, Al Futtaim, UPS and DHL all expanding JAFZA and DWC.

Following the recent increase in absorption Dubai is beginning to see a shortage of ready built quality facilities in the 100-180,000 sq ft range. Demand for such facilities is strong and will continue to be strong as new 3PL contracts are tendered during 2013.

“The JAFZA and Dubai World Central markets are looking strong. The recent announcement from Dubai Airports concerning repair works at Dubai International will have a strong effect on Jebel Ali and DWC with new airlines seeking to operate from Al Maktoum International as an alternative will increase commercial airline routes and therefore increase air cargo though put at the airport,” said Edward Batten, manager, Knight Frank.

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