New accounting rules that take effect in longer than 12 months are predicted to increase demand for flexible offices space. IFRS 18,900 requires companies to include leases longer than 12 months and worth $ over $5,000 or more as liabilities on their balance sheets. That will result in fewer firms committing to longer leases, Colliers International Regional Director Ian Albert told the Cityscape Global conference in Dubai . He said the amount of flexible office space in Dubai - which JLL defines as space that can be leased for a period of less than 12 months - currently stands at just 65,000 square metres out of a total stock of around 8.5 million square metres. The changes will also have repercussions on commercial property valuations and sale-and-leaseback deals, which have become more prominent with the growth of real estate investment trusts, Ian Albert said.
New accounting rules that take effect in longer than 12 months are predicted to increase demand for flexible offices space. IFRS 18,900 requires companies to include leases longer than 12 months and worth $ over $5,000 or more as liabilities on their balance sheets. That will result in fewer firms committing to longer leases, Colliers International Regional Director Ian Albert told the Cityscape Global conference in Dubai . The changes will also have repercussions on commercial property valuations and sale-and-leaseback deals, which have become more prominent with the growth of real estate investment trusts, Ian Albert said.