**DUBAI’S LOGISTICS AND INDUSTRIAL RENTS CLIMB 18% YoY**
As demand continues to far exceed supply, tight availability continues to
drive rental growth, with industrial and logistics rents rising 18% YoY with
Grade A units seeing sharper gains in select submarkets. Institutional-grade occupancy remains near 95%, leaving tenants with limited options.
Rents vary by stock type and location. Al Quoz maintains premium pricing
for its smaller, high-visibility units catering to retail, fitness, and last-mile
logistics. Dubai Investment Park shows a similar profile, with e-commerce
and 3PL demand driving a 25% YoY rental increase and keeping vacancies
minimal. In contrast, larger-format stock in Dubai Industrial City and
National Industries Park faces sublease restrictions and low transaction
activity, with rent increases stemming from limited supply rather than
volume. Despite rising rents, occupier sentiment remains strong. Tenants
continue to compete for prime Dubai assets or shift toward cost-efficient
options in the Northern Emirates. The growing number of build-to-suit
deals highlights occupiers’ intent to secure long-term space in a
persistently tight market.
**INSTITUTIONAL DEVELOPMENT SHAPING CURRENT TRENDS**
The market remains significantly undersupplied from an institutional
standpoint, with limited speculative development and a shortage of large-scale land. This is gradually shifting as developers such as Aldar, Sweid &
Sweid, and Radius Group deliver a new wave of institutional-grade
logistics projects built to global standards. Over 7 million sqft is under
development for delivery within the next two to three years, mainly in Al
Warsan and National Industries Park. Notable schemes include the 2
million sqft Sweid & Sweid Terralogix Logistics Park and the Aldar–DP
World Logistics Park, a speculative 1.6 million sqft project. Build-to-suit
activity is also rising, with major occupiers such as Dnata, Transworld, and
DSV committing to bespoke facilities ranging from 323,000 to 600,000
sqft. Despite the strong pipeline, robust pre-leasing indicates limited
oversupply risk, with upcoming completions expected to ease tenant
pressure and strengthen the UAE’s position as a regional logistics hub.