Cushman & Wakefield Core Highlights How Reliability, Talent, and Sustainability Drive Gulf Industrial Real Estate's Competitiveness

Rhea-AI Summary

Cushman & Wakefield (NYSE:CWK) has released new analysis highlighting the UAE's industrial real estate sector's competitive advantages. The report reveals that while Dubai and Abu Dhabi's rents fall in the $5-10 per square foot range, the region's appeal extends beyond costs to include reliability and efficiency.

The analysis, conducted in collaboration with KEZAD Group, emphasizes how the UAE's industrial real estate sector differentiates itself through integrated ecosystem models, clustering suppliers, manufacturers, and logistics providers in single zones. The report also highlights the growing importance of sustainability initiatives, including gas networks, carbon credit frameworks, and AI-based energy monitoring tools.

Positive

• None.

Negative

• Higher rent costs compared to emerging Asian markets and CEE regions
• Requires higher initial investment for occupiers compared to low-cost markets

KEZAD Group and Cushman & Wakefield Core highlight resilience as the new benchmark for occupiers and investors

DUBAI, UAE, Sept. 11, 2025 /PRNewswire/ -- As global supply chains shift and costs rise, the Gulf's industrial real estate sector in the UAE is doubling down on its strengths of reliability, infrastructure, and talent. According to new analysis from Cushman & Wakefield Core, in collaboration with KEZAD Group, the UAE is positioning itself as a resilient hub for occupiers and investors seeking long-term efficiency over low-cost alone.

"APAC and CEE may still win on rent levels, but what we see in the UAE is occupiers choosing reliability and efficiency over just chasing the lowest cost," said Tilana Kruger, Head of Industrial & Logistics at Cushman & Wakefield Core.

Cushman & Wakefield's Waypoint: Global Industrial Dynamics 2025 report notes that Dubai and Abu Dhabi fall within the US$5-10 per square foot rent band - mid-tier globally - yet remain attractive because of the wider offer. For investors evaluating options, competitiveness now extends beyond rent to include long-term ecosystem value such as industrial warehouses for rent in Dubai.

"Our clients take a far more holistic view of cost competitiveness," said Mohamed Al Khadar Al Ahmed, CEO of KEZAD Group. "Beyond rent, major considerations include energy tariffs, multimodal connectivity, workforce access, and time-to-market."

KEZAD's integrated ecosystem model exemplifies this approach by clustering suppliers, manufacturers, and logistics providers in one zone - cutting costs, shortening production cycles, and building resilience into supply chains.

"KEZAD is a good example of how clustering works in practice. Bringing suppliers, manufacturers and logistics into one place helps companies lower costs, speed up production, and strengthen supply chains," Kruger added.

Sustainability is also climbing the agenda. KEZAD Utilities & Facilities Management operates a 100km gas network alongside renewable initiatives, while free zone operators in Dubai and Abu Dhabi are piloting carbon credit frameworks and AI-based energy monitoring tools.

"We're seeing an increasing number of institutional investors entering the thriving logistics and industrial market with plans to develop sustainably. Advanced lighting, climate control, certifications, and smart building systems are now standard for new-builds," said Ben Rose, Director of Capital Markets at Cushman & Wakefield Core. "New entrants like Prologis and Blackstone will further drive standards forward."

Mohamed added: "Companies want long-term efficiency, not just low rent. They're looking for energy stability, digital readiness, and speed to market. That's where the UAE excels."

While the Gulf may not compete on headline cost with emerging Asian markets, its differentiated offer anchored in connectivity, stability, and ecosystem value continues to attract occupiers and investors looking for certainty in a volatile global environment.

Contact:
Rachel Smylie 
rachel.smylie@cushwake.ae

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SOURCE Cushman & Wakefield Core

FAQ

What are the rental rates for industrial real estate in UAE according to Cushman & Wakefield's 2025 report?

According to the Waypoint: Global Industrial Dynamics 2025 report, Dubai and Abu Dhabi fall within the $5-10 per square foot rent band, positioning them in the mid-tier globally.

How is KEZAD Group improving industrial real estate efficiency in UAE?

KEZAD Group implements an integrated ecosystem model that clusters suppliers, manufacturers, and logistics providers in one zone, reducing costs, shortening production cycles, and strengthening supply chains.

What sustainability initiatives are being implemented in UAE's industrial real estate sector?

The sector features a 100km gas network, renewable initiatives, carbon credit frameworks, and AI-based energy monitoring tools. New buildings include advanced lighting, climate control, and smart building systems.

Which major institutional investors are entering UAE's industrial real estate market?

Major institutional investors including Prologis and Blackstone are entering the market with plans to develop sustainable industrial real estate projects.

How does UAE's industrial real estate compete with Asian markets?

While UAE may not compete on headline costs, it differentiates itself through reliability, infrastructure, connectivity, stability, and ecosystem value, attracting occupiers seeking long-term efficiency over lowest cost.