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The UAE’s strategic location between the East and West, its suitable infrastructure, the creation of industry-specific free zones and a tax-free environment have all led to the increase in trade volumes and employment.
In this fertile economic environment, the strategic importance of choosing a suitable warehouse facility that best meets a company’s needs cannot be underestimated.
Leasing rates for warehousing facilities vary from emirate to emirate. Leasing rates in Abu Dhabi remain the highest with preferred destinations being Kizad, ICAD, Mussafah and Mina Zayed.
Several areas are in particularly high demand for commercial warehouses in Dubai. Jebel Ali is preferred, given its proximity to the Al Maktoum International Airport and its excellent connectivity to trans-emirates road networks. DIP is also seeing a positive surge with attractive rental rates and good infrastructure on offer allowing occupiers ease of mobility in and out of the country. Other areas such as Al Quoz and Ghusais are more suitable for smaller warehouses.
Rates in the northern emirates such as Fujairah and Ajman are much cheaper. However, the growth in these markets have been impeded due to nagging infrastructural issues such as disruptive power supply.
While rent and location are determining factors, other considerations are the presence of adequate safety and security facilities such as fire control, facility monitoring with indoor and outdoor camera systems, and climate control. Yard space for container loading and unloading, safe rooms for the storage of high-value goods, and a number of loading doors and pallet locations are non-negotiable.
When selecting a facility, one should take into cognizance future expansion plans. You don’t want to switch facilities every time your volumes change. Ask the potential warehouse what capacity it can handle, and what it will do if additional space is needed in the future.
• Rates in Dubai and Abu Dhabi are higher than in other emirates
• Jebel Ali a preferred location given its proximity to new airport
• Other factors are safety and security facilities, climate control
Source: Dipshikha Mitra, Special to Properties
The writer is a freelancer