As the implementation of Plan Abu Dhabi 2030 resumes and the resulting growth in industry continues, I have found that there is an increase in both new companies to the region setting up in the capital and also fresh branches and/or project offices of companies already trading in the other Emirates or within the wider MENA area.
This, together with the stricter rules on the type of property companies can work from, has brought an increased demand for office space in dedicated commercial environments and I am seeing a growth in enquiries for short-term serviced offices in particular.
So why do some companies choose to rent this type of commercial space instead of on a longer-term fixed tenancy?
Many new companies are reluctant to commit to a renewable annual lease on an unfurnished office, preferring to have the flexibility that a business centre (a provider of short-term serviced offices) can offer. Although at first glance the rent may seem higher, this is commonly found to be deceptive after cash-flow and the full costs have been taken into consideration. A permanent office requires a considerable amount of upfront investment for the annual rental payment, fit-out costs, furniture, utility and IT connections and of course space allowance also has to be made for corridors, kitchen & bathroom areas and a reception lobby.
I have also found that companies starting new operations in Abu Dhabi very often don’t know how much space they will actually need in the reasonably near future – they are not able to forecast the number of desks, meeting room areas, managerial offices etc that they will need, as maybe either they have yet to become established, or maybe the office’s growth is linked to the stage of a project. This is where the ability to increase or reduce your office space without penalty is obviously very beneficial.
A municipality-licensed business centre, (like LLJ Property’s) will also enable you to apply for an Abu Dhabi Trade Licence from it and will be connected to the Tawtheeq tenancy registration system, meaning they will be able to immediately issue municipality-registered and approved tenancy agreements.
Rent is typically ‘all inclusive’, based only on the desk space and IT facilities you require at the time, and these can be easily increased or decreased as requirements dictate. The tenure of the tenancy will also be flexible, avoiding a per annum commitment. Conference rooms, IT support and reception services are part of the deal too, meaning that your desk doesn’t have to be manned for your telephone to be answered and messages taken, keeping staffing levels
to a minimum yet adding to the sense of professionalism and ensuring that client calls are answered.
Certainly an office solution worth considering.
A copy of Plan Abu Dhabi 2030 can be found on the General Secretariat of the Executive Council’s website www.gsec.abudhabi.ae.
