Evolving market regulations are influencing leasing structures and reshaping the tenant/landlord relationship, with an increased emphasis on transparency, compliance and longer-term contractual agreements expected to characterise the next phase of the commercial market evolution.

Most tenants are prioritising premium office developments, progressively seeking adaptable layouts that support changing workplace models. Existing asset owners are proactively renovating established assets to upgrade specifications and meet evolving occupier demands for contemporary, efficient, and amenity-enhanced spaces.

Occupancy levels across prime office developments remain at or close to fully occupancy levels.

Jeddah and DMA are also experiencing consistent occupancy growth as occupiers continue to prioritise quality and location over cost considerations.

Green building certifications, energy efficiency, and sustainable designs are becoming key determining factors in tenant selection. Developers are increasingly responding to this trend and recognising its role in long-term asset value and occupier satisfaction by incorporating sustainable aspects within existing and new assets.