Grade B & C Offices
Value-tier offices offering strong cash-on-cash yields — suited for SMEs, back-office operations, and yield-focused investors.
Market Indicators (Dubai 2025-2026)
| Indicator | Value | Note |
|---|---|---|
| Price per sqft | AED 900 – 1,600 | Cheaper stratified units |
| Rent per sqft | AED 90 – 150 / yr | Higher yield vs Grade A |
| Cap Rate | 7.5% – 9.5% | CBRE UAE Office 2025 |
| Occupancy | 82% – 92% | Varies by micro-location |
| WAULT | 2 – 3 years | Shorter leases typical |
Target Audience
Yield-focused investors, SME owner-occupiers, and portfolio diversifiers.
Suitable Dubai Areas
Asset Overview
Grade B/C offices offer 100-200 bps higher yields than Grade A but with shorter WAULT and higher tenant churn. Attractive for investors who value monthly income over capital appreciation. Building age typically 10-20 years; renovation upside available in some JLT and Bur Dubai stock.
Typical Lease Structure
Typical lease: 1-2 year terms, 3-12 cheques, 5% security deposit, 5% annual escalation cap under RERA index.
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Note: UAE commercial property is subject to 5% VAT on sale and lease. Information provided is general and not legal or tax advice.
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