{"id":116042,"date":"2026-04-24T00:00:00","date_gmt":"2026-04-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/?p=116042"},"modified":"2026-04-24T03:04:07","modified_gmt":"2026-04-24T03:04:07","slug":"office-leasing-demand-slips-on-regional-war-but-pre-summer-rush-keeps-activity-robust-knight-frank","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2026\/04\/24\/office-leasing-demand-slips-on-regional-war-but-pre-summer-rush-keeps-activity-robust-knight-frank\/","title":{"rendered":"Office leasing demand slips on regional war, but pre-summer rush keeps activity robust -Knight Frank"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Dynamics might be shifting for Dubai\u2019s office market<\/strong> this year after years of red-hot prices and tight supply, with rents holding steady for the first time in years in 1Q 2026 and demand shifting toward smaller and higher-quality offices, according to <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/04\/16\/dubai-office-market-cools-after-years-of-rent-gains\/\" style=\"\">data<\/a> from Savills and Knight Frank that we picked up earlier.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>There were a lot of mentions of \u201cpre-conflict\u201d momentum<\/strong> <strong>in Knight Frank\u2019s report<\/strong>, though the real estate agency stopped short of disclosing the impact of the war on the market in March or of making any definitive forecasts for the market for the rest of the year.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>For now, businesses have shown a mixed response to the conflict in how they plan to operate their offices.<\/strong> Some have shown they only plan to double down on their <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/04\/14\/finreon-opens-difc-office-etihad-expands-china-routes-sobha-enters-abu-dhabi-with-aed-40-bn-plan-and-more-tasreef-work-completed\/\" style=\"\">expansions<\/a> to or within Dubai, with new hires still happening, while others have <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/03\/02\/this-morning-intl-players-assess-uae-operations-amid-strikes-opec-to-raise-production-in-april\/\" style=\"\">evacuated staff<\/a> and closed down their offices indefinitely.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We spoke with Adam Wynne, partner and head of commercial at Knight Frank, to dive deeper into the knock-on effects of the war on the office leasing market.<\/strong> The main takeaway? The market might see a cooldown, but this will likely take the form of rebalancing and optimization as opposed to downright downsizing or exiting.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>EnterpriseAM: How has leasing velocity changed since the regional conflict started?<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Adam Wynne:<\/strong> Legacy [transactions], which have been ongoing since the beginning of 2026, continue to complete. While new inquiries are down notably since the end of February, those parties who are engaging are serious and have either long-term objectives in the region or have upcoming lease events (i.e. lease expiration) and need to find solutions.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We did witness a holding period for 2-3 weeks in March<\/strong> where parties \u201cpaused\u201d engagements, but we are now seeing those parties re-engage with the aim of signing leases pre-summer. Importantly, for many businesses, long-term objectives remain unchanged, and they remain committed to the region.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>While leasing velocity in terms of volume has reduced, conversion rates on active inquiries remain relatively robust<\/strong>, reflecting a more focused and committed pool of occupiers.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>E: Which submarkets are showing the earliest signs of pricing resistance or tenant pushback despite overall strong demand?<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>AW: <\/strong>Given the inherent lag in real estate markets, we have not seen a material shift in dynamics across the key sub-markets we track. However, <strong>we anticipate pressure emerging within the off-plan sales segment and across secondary-grade assets<\/strong> where appropriate money has not been spent on maintenance and upkeep. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>As seen in the office sector following Covid, this period is likely to prompt occupiers to undertake a strategic review of their real estate portfolios<\/strong>, rebalancing where required. This may result in a reduction in overall footprint, but with a corresponding flight to quality, for example, relocating into better quality assets that offer stronger provisions such as public transport links and integrated retail \/ lifestyle offerings.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>E: How much of the 2026\u20132030 supply pipeline is already pre-leased or secured by anchor occupiers?<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>AW:<\/strong> <strong>In prime areas, such as DIFC, where there has been a historic imbalance between supply and demand, we are continuing to see strong demand<\/strong> and pre-leases being signed.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Corporate occupiers are continuing to opt for single owned assets<\/strong>, built by developers who have an established and reliable track record. And for these assets which have a completion date within the next 12 months, we are seeing strong pre-leasing activity for all unit sizes. A strong example of this would be DIFC Square which handed over in February and was 100% pre-leased.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Knight Frank sees a likelihood of a repeat of Covid, where occupiers began to optimize their portfolios, resulting in a reduction of footprint coupled with a flight to better quality assets<\/p>\n","protected":false},"author":1,"featured_media":116043,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2416],"tags":[7,98,2415],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-116042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-three-questions","tag-enterpriseam-uae","tag-real-estate","tag-three-questions","wpautop","entry"],"acf":{"mongo_id":"0ebcf4b1-ba7c-46c5-8024-0b7f608d6867","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/4\/1229.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Office leasing demand slips","related_issue":[116035],"teaser":"Knight Frank sees a likelihood of a repeat of Covid, where occupiers began to optimize their portfolios, resulting in a reduction of footprint coupled with a flight to better quality assets"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Office leasing demand slips on regional war, but pre-summer rush keeps activity robust -Knight Frank - UAE<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/04\/24\/office-leasing-demand-slips-on-regional-war-but-pre-summer-rush-keeps-activity-robust-knight-frank\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Office leasing 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