Offices rents in Beirut are among the highest

Prices affected by short supply and high demand

The average rate of renting an office in Beirut was around $450 per square meter in 2012, according to a report issued by global brokerage and business consultancy firm Cushman & Wakefield. Accordingly, the report titled 'Office Space Across the World 2013' ranked the capital as the 24th most expensive office market in the world out of 63 countries.

Local real estate experts are skeptical about the reported figures and consider that office spaces in the capital are much less. According to Mounir Douaidy, General Manager of Solidere, “the average rental price for offices in Solidere is around $350.”

The report said many businesses are postponing the decision to choose a location for their offices, or opting to renew their leases on a year by year basis. Michael Dunn, General Manager at Cushman & Wakefield’s local subsidiary, said: “Due to the short supply by office developers, high demand caused prices to grow rapidly.”

The report noted stability in rental prices in prime locations. “Downtown is the most expensive location in Beirut, and Hazmieh, Sin el-Fil, and Dbayeh, are the most expensive ones outside Beirut,” Dunn said.

Multinational companies, particularly those specialized in pharmaceuticals and food and beverage, lead the demand for office spaces. “Multinational firms prefer to rent whereas local businesses tend to buy office units,” said Dunn.

Regionally, Beirut came behind Abu Dhabi where an office unit costs $545 per square meter per year on average. But it came ahead of Manama, where the rate drops to $190. Dunn said: “Abu Dhabi has a high cost of living while Bahrain is much cheaper and has an oversupply of office units.” London was the most expensive office market in 2012, after leapfrogging Hong Kong.