Dubai-based Aurecon Group has been appointed as the main consultant for an office tower scheme in Jeddah, according to source on the sidelines of a project management forum being held in Dubai.
The project, which is being developed by the local Abdul Latif Jameel Corporation, is set to be the companys headquarters. The project will accommodate up to 2,500 employees and will be located in the Al-Balad area near King Abdulaziz International airport.
The design works for the project were recently completed by the UKs Aedas.
The building work tender is expected by the end of the year with the client expecting completion by 2018.
Earlier this year MEED reported that Jeddahs office market witnessed a further slowdown in the growth of lease rates so far this year. The decline is expected to continue due to demand constraints throughout 2016. Jeddahs office market has historically been dominated by the public sector and government bodies.
Lease rates have increased by 2 per cent year-on-year. However, quarter-on-quarter rates in the third quarter of this year have decreased by 1 per cent. Vacancy rates on the other hand remained stable at 5 per cent, although this is down from 6 per cent last year, according to a report by US-based real estate consultancy JLL.