Riyadh has a diverse supply of Class A and B commercial office space with a supply of around 3.5 million square meters, mostly concentrated in the central and northern areas of the city. Demand is concentrated on key buildings such as Kingdom Tower, Economic Gateway, and Granada Business Oasis, which enjoy over 90% occupancy.<\/p>\n
Vacancy rates remained unchanged across the city, indicating that demand for office space is keeping pace with the new supply that entered the market during the second half of 2014 and the first half of 2015. Class A and B office rents have stabilized throughout the period and currently stand at SAR 1,300 and SAR 900 per square meter per annum respectively.<\/p>\n
According to knight frank's office market update, the potential surplus following the release of successive phases of the King Abdullah Financial District (KAFD) and the delivery of the Information Technology Complex (TCC) has not been realized, partly as a result of the historical shortage of quality Grade A office space and in addition to the phasing of the KAFD. As a result of these government-backed schemes, the capital will see 1.2 million square meters of gross leasable area added to the market in the next two years.<\/p>\n
The office sector in Jeddah also stabilized, and while there were a limited number of new office deliveries in the first half of 2015, vacancy rates were unchanged compared to the previous year. This is largely because demand during the period was sufficient to offset the rise in new supply. As a result, Grade A (SAR 1,200 per square meter per annum) and Grade B (SAR 700 per square meter per annum) office rents in the first half of 2015. Demand is expected to remain stable amid high supply in the Eastern Province, and we will see a slight increase in vacancy rates by the end of this year, but with landlords reluctant to negotiate despite changing supply and demand dynamics. Class A and B office rents are expected to remain stable in 2015 (SAR 1,050 and SAR 700 per square meter per year, respectively).<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>Riyadh has a diverse supply of Class A and B commercial office space with a supply of around 3.5 million square meters, mostly concentrated in the central and northern areas of the city. Demand is concentrated on key buildings such as Kingdom Tower, Economic Gateway and Granada Business Oasis, which enjoy over 90% occupancy. Vacancy rates across the city remain unchanged. Read more<\/a><\/p>","protected":false},"author":10,"featured_media":5609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"0","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[97],"tags":[],"class_list":["post-6028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-office-commercial"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak post excerpt","type":"text","formatted_value":""}},"featured_image_urls":{"full":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2.jpg",1024,892,false],"thumbnail":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2-150x150.jpg",150,150,true],"medium":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2-300x261.jpg",300,261,true],"medium_large":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2-768x669.jpg",768,669,true],"large":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2.jpg",1024,892,false],"1536x1536":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2.jpg",1024,892,false],"2048x2048":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2.jpg",1024,892,false],"trp-custom-language-flag":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2.jpg",14,12,false],"event-thumbnail":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2-300x200.jpg",300,200,true],"event-medium":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2-600x400.jpg",600,400,true],"event-large":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2-1024x800.jpg",1024,800,true],"event-hero":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2015\/06\/\u0627\u0644\u0631\u064a\u0627\u0636_2.jpg",1024,892,false]},"author_info":{"info":["\u0627\u0645\u0644\u0627\u0643 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629"]},"category_info":"\u062a\u062c\u0627\u0631\u064a \u0648\u0645\u0643\u062a\u0628\u064a<\/a>","tag_info":"\u062a\u062c\u0627\u0631\u064a \u0648\u0645\u0643\u062a\u0628\u064a","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/6028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=6028"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/6028\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media\/5609"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=6028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=6028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=6028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}