Which neighborhoods offer the largest upcoming office stock?
There are currently around 184,000 SQM of office space under construction in Municipal Beirut. This volume is distributed across 36 projects. Some projects are single-use office buildings, while others are office floors located on the lower levels of residential buildings. The regions with the largest office supply are all located in central and eastern Beirut. Neither of the neighborhoods located in Ras Beirut make the Top 5 list! Hamra has the largest upcoming stock in Ras Beirut with just 8,279 SQM of offices under construction and UNESCO offers a meager 3,600 SQM.
It is logical to expect the highest number of office stock to be under construction in Beirut Central District (BCD), the neighborhood that holds the highest concentration of office buildings in the capital. The largest overall stock (49,923 SQM) is distributed across only five projects that are currently taking place in BCD: Two close to Starco Center and three on the area’s outskirts (Saifi and Bachoura). Each project offers an average of 9,985 SQM of office space. Asking selling prices vary between USD 5,500-7,500 per SQM.
Corniche el Nahr
The area is not a traditional business destination. However, the large stock of vacant plots that are relatively easy to develop have attracted a diversified panel of real estate projects – residential, hospitality, and offices. Office buildings are taking place on the plots that are least suitable for residential development, especially along the main traffic arteries, which are too busy and too noisy to attract future homebuyers. Asking selling prices vary between USD 3,500-4,000 per SQM.
The third largest stock is located in the area of Adlieh-Badaro. Individual projects are smaller than those taking place in BCD. Seven projects are currently under construction in the area, offering a total of 33,392 SQM of office space. Demand is driven by professionals in the legal sector because of the proximity of the Palace of Justice and a number of governmental offices but also by companies that want to avoid the traffic jams of the inner streets of Beirut. Asking selling prices vary between USD 3,500-4,000 per SQM.
The presence of Hotel Dieu boosts demand for small private clinics. The area, however, is close enough to Adlieh’s Palace of Justice to also attract lawyers. Developers have picked up the trend and offer offices to satisfy both types of demand. This supply has been met with great success, as it has been several decades that no new office project was built in the area. Asking selling prices vary between USD 3,500-4,000 per SQM.
Three projects are currently under construction in the area. However, the sheer size of Sama Beirut places Sodeco ahead of areas in Ras Beirut that have a larger number of projects! At its initial launching, the project had set aside only a few floors for office use. However, the developer has since increased the office stock, which now occupies the second to thirteenth floors. Some floors are offered for rent. Asking selling prices are of USD 5,700 per SQM (on the 10th floor).