The current Beirut retail market is paradoxical. On the one hand, demand from both international and local brands has been high, despite the uncertain political and security situation. On the other hand it’s becoming increasingly difficult to find availability when it comes to locations for commercial rentals. In the most attractive retail areas such as downtown, Hamra, Verdun, ABC Achrafieh or Kaslik, supply has severely dried up. The multitudes of people who frequent these areas make many retailers dream of being there. These are after all ideal places in Beirut to have a shop window. Retailers are however clambering over one another and having to show great patience in order to obtain a good placement.

It’s undeniable: a capital city like Beirut today needs new commercial spaces. The commercial centers and shopping malls like ABC Achrafieh and Citymall are a direct response to this need, as much at the centre of town as the outskirts.

Let’s take a look at the evident frustrations in Ras Beirut for example, where the construction of a dedicated commercial centre has become an absolute necessity. Aside from a few locations in the basements of the malls, Verdun has become saturated. As for the rare opportunities that do present themselves, these are immediately taken up by large groups such as Azeda and the Retail Group. Supply is so limited that those brands wishing to be there must patiently wait their turn on the sidelines.

Opening in Hamra is just as difficult. The area is greatly sought after by international brands, but the old boutiques paying low rents block the situation. These merchants are hard to dislodge as many demand a high compensation in return (khloo). All too often the price demanded is too high and at times even absurd.

The success of ABC Achrafieh is on the other hand undeniable. The waiting list of retailers is so long that it would almost be possible to fill a second shopping mall. As a result the surrounding areas, (Place Sassine and Avenue Elias Sarkis) are reaching saturation. There remains some availability in secondary streets of Achrafieh but locals are less well placed.

In Downtown, the areas most in demand are well known, principally Allenby, Moutran and Malek streets. They have collected the top luxury brands present in Lebanon. These locations however prestigious, are not readily affordable to many when they add the figures up (annual rents beginning at a 1000 and 1500 dollars per msq). Availability despite this is rare, and is often taken up when available by the TSG group. This high demand for commercial property within downtown is confirmed by the success of the Beirut Souks project, which has already been 90% leased. Demand is equally high for the retail space available within the supra up market Le Gray development at the intersection of Martyrs Square and Rue Weygand, although this is not expected to open before the beginning of next year. For those who are not interested in being placed in the surrounding area, a possible longer-term investment area is Minet el-Hosn where numerous constructions offer attractive options for commercial sales.

RAMCO Real Estate Advisers Tel : +961 (0) 1 349910 Fax : +961 (0) 1 753573 E-mail : mail@ramcolb.com.