As we mentioned last week, the commercial real estate sector has been influenced by two contrasting drivers; first, the increased rate of investor led transactions seeking high return on investment rates and second, the changing preferences from end-users or tenants of the various commercial space types.

While investors are more interested in the return of investment rates a property offers, tenants are more focused on project specifications. It used to be location before everything else, but today’s tenants’ changed preferences indicate that while location remains a primary factor in decision-making for tenants; due to location affecting both accessibility for their employees as well as their targeted consumers. However, recently experience and technology have come as very close second and third of the highly influential factors for tenants picking new entry or expansion locations in Egypt.

These factors in turn have influenced the commercial real estate market positively through making supply more competitive in terms of offering better and more innovative facilities that can provide unique or fresh experiences to the tenant and their consumers. Accordingly, these changed preferences and tenants’ demand has led to the upcoming supply of the mixed-use or dedicated sector types becoming more and more experience oriented with clearly defined destination identities and missions that both tenants and their clients can benefit from and belong to.

For further information about the commercial market outlook, consult research and development team at B2B to understand the full scope of our services and how we can help guide your movements in the real estate sector in Egypt.