What Makes the Light Commercial Tower Interesting?

If you are looking for The Light Commercial Tower Arjan in Dubai which offers the growth and development opportunities, then you definitely need to consider this affordable commercial building in Arjan. No matter whether you want to rent an office or choose a retail unit, the light commercial tower will give you a great opportunity to invest in the real estate. Hence, in this guide, we will provide you with all the necessary information.

Characteristics of the Building in Arjan

Once you look atThe Light Commercial Tower Arjan in Arjan, you will be able to understand that this is not luxurious building which tries to impress you. On the contrary, this is the commercial building which will provide you with simple commercial operations at affordable prices.

Target Audience (Investors, Tenants, Researchers)

Whether you are an investor, looking for profitable property, an entrepreneur who needs an office for your start-up, a retailer who wants to open a store, or a researcher who is interested in studying the stocks of the commercial property of Arjan, this guide will provide you with the necessary information.

Location and Access

Location of the property plays an important role when considering real estate.

Location within Arjan, Al Barsha South 3, Dubailand

The Light Commercial Tower Arjanyou are interested in will be located in Arjan which is the sub-community of the Dubailand master development called Al Barsha South 3. This way, the light commercial tower in Arjan will be in the vicinity of leisure venues in Dubai as well as in the center of the residential neighborhood.

Proximity to Sheikh Zayed Road and Major Arterial Roads (Umm Suqeim Road, Al Khail Road, Hessa Road)

Due to its proximity to Sheikh Zayed Road, the building will ensure convenient access to any part of the city. In addition to that, due to Umm Suqeim Road, Al Khail Road, and Hessa Road, you will be able to easily reach the building from any part of Dubai.

Commutes to Various Dubai Locations (Mall of the Emirates, Dubai Marina, Downtown Dubai, DXB Airport)

The analysis of the commutes makes it clear that there are significant advantages of the location of The Light Commercial Tower Arjan. So, it will take you approximately 12 minutes to reach Mall of the Emirates, 15 minutes to reach Dubai Marina, 15 minutes to reach Downtown Dubai and The Dubai Mall, and about 25 minutes to reach Dubai International Airport. Overall, this is the good geographical location of the mid-range commercial property.

Developer Background: ACW Holdings

Information about the Company and its Strategy of Development

British-founded developer ACW Holdings has successfully finished the construction of the light commercial tower with the purpose of giving investors the opportunity of profitable commercial real estate asset in the developing neighborhood of Dubai. It is clear from the philosophy of the developer that there are functional office and retail spaces in the design of the tower, not luxury finishes.

History of the Company in the Freehold Commercial Sector of Dubai

After The Light Commercial Tower Arjan commercial tower, the company ACW Holdings became famous as the developer which specializes in development of the freehold commercial and retail property of Arjan.

Specifications of the Building

Number of Floors, Total Area, and Footprint of the Building

This 9-10-floor building (depends on the counting method of ground and mezzanine levels) has the total built-up area of approximately 146,000 square feet. So, you receive a great amount of office and retail space in a building which is not a skyscraper.

Distribution of the Retail and Office Floors of the Building

The Light Commercial Tower Arjan has a logical zoning. So, ground and mezzanine levels will be occupied by approximately 20 retail units, while the remaining floors will be occupied by 127 executive offices.

Number of Basement Levels of Parking and Total Capacity

It is pleasant to know that there are two basement levels of parking in the building. In addition, covered parking places for many units will be a plus if you like to park the car in the garage and not on the streets.

Amenities of the Lobby and Elevators, and Facilities

Firstly, you should pay attention to the amazing lobby and fast Japanese-made elevators (FUJI) in the building. Along with 24-hours security services at the reception, this will make a favorable impression on you.

Description of the Office Spaces

Sizes and Types of the Office Units

Depending on your needs, you will be able to choose the office units with sizes ranging from 45 square meters (approximately 486 square feet) to 72 square meters (approximately 775 square feet). In addition, there are offices larger than 1,000 square feet. So, this is a great choice for both solo consultants and teams of 10 people.

Fitted, Semi-Fitted, and Shell-and-Core Units

You will be able to choose the units which are already fitted, semi-fitted, and unfitted offices depending on your budget and how much you are ready to decorate the interior. The fitted office is cheaper and will save your time, while the shell-and-core office will give you an opportunity of complete freedom in designing the interior.

In-Unit Amenities (Pantries, Bathrooms, Balconies on Select Floors)

All the floors have bathrooms, kitchenettes, and dining rooms. In addition, there are superior offices on select floors which have such amenities as balcony, private bathroom, and private kitchen – if you are interested in such unit, you should ask about it.

Meeting Facilities

Along with office facilities, you will receive an opportunity to use the conference room, which is equipped with arched windows and which gives you an opportunity to conduct different events in a proper manner.

Description of the Retail and Ground Floor Spaces

Sizes and Layout of the Ground Floor Spaces

Depending on the requirements of your retail concept, there are units with different sizes. They range from the compact kiosk to the large-sized retail unit for running full service.

Drivers of the Footfall (Residential Density in the Neighborhood)

Due to the fact that there are low-rise and mid-rise residential buildings in Arjan, there will be a great amount of residents in the area and, accordingly, there will be a good level of footfall in the retail units.

Suggested Retail Concepts (F&B, Wellness, Services)

Since you are surrounded by the residential population, it will be profitable for you to develop F&B outlets, wellness studios, salons, clinics, and various service-related concepts.

Amenities and Services of the Building

Security and Surveillance Systems

In the building, you have round-the-clock security desk and video surveillance in the common areas which will help you to protect your inventory and confidential information.

Maintenance, Cleaning, and Utility Management

There is no need for you to arrange maintenance, cleaning, and utility management because this service is included in the price package.

High-Speed Elevators and Infrastructure

Earlier, we mentioned the importance of elevators inThe Light Commercial Tower Arjan. However, it is not only a convenience facility but the speed of the elevators is important.

Ownership Structure: Freehold Ownership Concept

Freehold Commercial Property Ownership

Freehold commercial property means that you get an opportunity of being the owner of the building and not a temporary right to use it. The freehold zone of Dubai gives you an opportunity of freely selling, buying, and leasing the commercial property.

Eligibility of Foreign and Expatriate Investors

Foreign and expatriate individuals do not need to be citizens of the United Arab Emirates in order to own the commercial property in Arjan. In Dubai’s freehold zones, they can buy, lease, or sell the commercial and residential properties on the same basis as the citizens.

Pricing Information

Sale Price per Square Foot

According to the data of the property listings, the sale prices for the units of the tower are in the range of 1,300-1,500 AED per square foot. Nevertheless, you should check the current information directly with the agent because the pricing changes over time.

Rental Rate for an Office and a Retail Unit

According to the data of the property listings, you will find the office units of 550 square feet leasing at the rate of 80,000 AED per year, while offices that are larger than 1,200 square feet can cost 250,000 AED per year. As for the retail units, their price depends on the size.

Service Charges per Square Foot

The service charges forThe Light Commercial Tower Arjan are in the range of 20 AED per square foot per year.

Investment Case: Yields and Return on Investment

Reported Yields

The gross yield of the units in the light commercial tower varies in the range of 8% according to the listings. However, it is necessary to analyze the yields for each unit individually.

Conditions for Gradual Capital Appreciation

It is obvious that with the continuous growth of the number of residents in the neighborhood of the light commercial tower, the demand for commercial and retail property will only grow. Therefore, the capital appreciation is quite possible.

Risks and Considerations of the Real Estate Market

However, despite all that, it is necessary to consider the risks connected with the fact that the building is older than 10 years and which may lead to the rise of the cost of the maintenance of the building. Besides, with the emergence of the new commercial buildings in Dubailand, the competition for tenants will grow.

Arjan Neighbourhood Context

Arjan’s Transformation

Arjan has transformed from the quiet corner of Dubailand into one of the most developed neighborhoods. Therefore, you can invest in the developing area.

Residential Density in the Area and Drivers of the Demand for the Commercial Property

Due to the fact that there are new residential towers around the light commercial tower, the demand for the commercial and retail spaces grows constantly.

Nearby Landmarks and Attractions

Dubai Miracle Garden, Dubai Butterfly Garden

You are located in the vicinity of such popular landmarks as Dubai Miracle Garden and Dubai Butterfly Garden. Thus, the flow of tourists in the vicinity of the tower is quite active.

Mediclinic Parkview Hospital and Healthcare

Due to the proximity to the hospital, it will be easy for you to attract your future employees.

International Schools in the Vicinity

International schools are also located in the vicinity of the building, which is quite convenient, besides attracting the potential retail customers in the vicinity of the building.

Retail and Dining Offerings

Restaurants within the Building

You do not need to go to another building in order to have a break because there is a cafe in operation on the ground floor of the tower.

Restaurants and Cafes around the Tower

In addition, you will have an opportunity to go to various restaurants offering food in the South Asian and international cuisines within walking distance from the tower.

Al Barsha City Center Shopping Mall

If you need something more substantial than coffee or a cup of tea, it will be quite convenient to have the shopping mall nearby.

Public Transport Links

Bus Stops and Bus Routes

Several bus stops including Sheraton Building Arjan, Miracle Garden, and Damac Northside Building are located near the light commercial tower. In addition, there are bus routes, such as F36 and F21 which will transport you to the Mall of the Emirates.

Closest Metro Stations and Commute Times

Three metro stations – Mashreq, Mall of the Emirates, and Equiti – are located within 17 minutes’ commute from the tower.

Driving Directions and Road Accessibility

Due to the access to Sheikh Zayed Road and four surrounding arterial roads, this is one of the most convenient buildings for drivers in Dubailand.

People Who Should Consider This Building

Small and Medium Businesses Needing Commercial Property

If you run a small business and need the affordable space for offices and/or retail spaces, then the tower is exactly what you need.

Investors Needing Profitable Freehold Commercial Investment

If you are looking for a profitable investment without prestige and luxury – this is your choice.

Retailers Providing Products to the Residential Catchment Area

Due to the high residential density in Arjan, you will have the opportunity to open your store and serve the residential customers.

The Light Commercial Tower vs Other Commercial Buildings in Arjan

Position within the Local Competitive Set

Within the local competitive set of commercial buildings in Arjan, this one is distinguished by the fact that it operates for a long time – since 2012.

Value Proposition of the Light Commercial Tower vs Nearby Alternatives

Unlike the other new buildings in the area which are filling with tenants, you will have the already proven footfall and retail mix.

Leasing and Buying Process

Leasing Process of the Office or Retail Unit

In order to rent the office or retail unit, you need to find an appropriate listing through the agent, view it, discuss the conditions and sign a tenancy agreement which will be registered through Ejari.

Buying Process of the Office or Retail Unit

In order to buy a unit, you need to agree with the owner on the terms, sign a Memorandum of Understanding, pay the deposit if needed, and complete the transaction through the Dubai Land Department.

Documentation and Practical Considerations

Regardless of whether you lease or purchase the unit, you will need a passport or Emirates ID, proof of funds if applicable, and, in case of business tenants – trade license documentation. The use of the licensed agent who knows the building well will help you to avoid delays.

Building Age and Maintenance Projections

Year of Completion and Current State of the Building

The light commercial tower was completed in 2012 and thus is already more than a decade old. While many listings claim the units to be in good condition, this is the condition of any mature building and may vary per unit.

Verification of Key Information Prior to Making Your Choice

You will want to examine the condition of the particular unit fit-out, find out what the service charges are currently, and enquire about any upcoming building maintenance and upgrade works.

Challenges and Practical Tips

Challenge of Finding Parking Places during Rush Hours

Although there are two basement levels of parking, it is still difficult to find places during rush business hours. Therefore, it would be wise to make sure that you have enough parking spaces.

Navigating Through the Availability of the Units in a Fast-Moving Micro-Market

In order to make a good deal, especially in the mid-tier property, it would be better to work with the agent who brings the latest listings to you.

Future Prospects of the Commercial Sector of Arjan

New Developments Currently Taking Place Around the Building

Arjan keeps growing with the emergence of new residential and mixed-use projects and with every new development comes a new potential customer base or tenants for existing commercial buildings, including this one.

Indicators of Long-Term Demand for Commercial Real Estate in Arjan

As more people move into Dubailand and as it develops its infrastructure, it is safe to assume that the long-term demand for affordable commercial real estate will keep on growing.

Conclusion

Now you know everything that can be said about the light commercial tower. This is a freehold mid-tier commercial building located in one of the most active residential communities of Dubailand. With the help of mature transport connections, established tenant base and acceptable yields compared to other buildings in the surroundings, this building can be considered to be attractive investment choice for those who value affordability, accessibility and especially residential catchment area. However, as always in commercial property decisions, it is advisable to do all necessary due diligence, double check the current prices, inspect the chosen unit and its service charges. But at least now you have got a good basis to start from.

Frequently Asked Questions (FAQ)

Where is The Light Commercial Tower Arjan located?

The building is located in Arjan, Al Barsha South 3 sub-community of Dubailand, next to Sheikh Zayed Road.

Who developed the building and when was it completed?

The building was developed by ACW Holdings and completed in 2012.

What is the size of the office and retail units?

The average size of office units varies from about 486 to 775 square feet; some of the units are bigger and exceed 1,000 square feet. The size of retail units varies.

Is the building freehold? Can foreigners invest in it?

Yes, the building is freehold and foreign and expatriate investors can acquire units following the freehold ownership regulations in Dubai for designated zones, such as Arjan.

What rental yields can investors expect?

The gross yields around 8% have been reported. However, the net yields are individual and depend on the unit, tenant and lease terms.

What amenities does the building provide?

You get 24/7 security services, elevators with high speed, parking on two basement levels, conference room and retail area, which includes a café.

What is the connection to public transport?

There are several bus stops nearby and the nearest metro stations are about 17 minutes walk away.

Which types of businesses are suitable for this building?

Mainly SMEs, service businesses, F&B concepts and wellness studios and also investors looking for mid-tier commercial yields.

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