Dubai faces warehouse shortage due to influx of new businesses

Dubai faces warehouse shortage due to influx of new businesses

Dubai is facing a shortage of warehouse space, as new businesses come in and existing companies expand their footprint, according to a report on Thursday. Requirements for new warehouse space in the emirate reached 9.9 million square feet in the third quarter of the year, while the supply of under construction warehouse stock stands at only 1.56 million square feet, Knight Frank said in its latest analysis. “Demand is outstripping supply and occupiers are faced with the prospect of leasing more secondary stock, while others are gravitating towards locations in Abu Dhabi, which is benefitting from spillover demand,” the report said. The significant portion of the demand comes from the logistics sector, accounting for 44% of new requirements, followed by the manufacturing and industry (16%) and technology sectors (13%). Among those that require warehouse space are companies in the automotive sector, as well as last-mile centres. According to Maxim Talmatchi, Associate Partner, Co-Head of Industrial and Logistics, there have been new market entrants in Dubai from as far as Asia Pacific and CIS countries, as well as Turkey and India. “Demand has been strong this year and we have worked with several new market entrants… Additionally, existing industrial occupiers have