The decision to open a 1.1 million sq ft commercial property complex in Dubai as thousands of people were being urged to work from home may seem strange to many.

But for Khalid Al Bakhit, chairman of ICD Brookfield, which opened its new lifestyle and business destination in the heart of Dubai's financial district earlier this week, it was a no brainer.

Al Bakhit (pictured below) told Arabian Business that he is happy to wait out the coronavirus pandemic and, with a raft of big name clients already signed up, he said he is confident about the longer-term prospects for the office market in the emirate.

He added that lower supply could offset a drop in demand for office space. "In light of the pandemic and its chilling effect on investors’ perception of office real estate, new groundbreakings are likely to be minimal, as construction lending inevitably tightens," he said.

"We are confident that as the anxiety surrounding the pandemic subsides vibrant physical workplaces will remain in demand. In our view, companies value the power of in person collaboration in shaping a dynamic corporate culture, and their employees do too," added Al Bakhit.

"We expect to see the office come under pressure as corporates consider the impact of working from home and life after Covid and we anticipate they may consider downsizing and seek greater flexibility with respect to their space within buildings. Prior to the pandemic we were in a strong position but now more efficient floor plates, healthy buildings and greater flexibility will be more important than ever, we are optimistic that there will be strong appetite from corporations to locate their staff in ICD Brookfield Place."

ICD Brookfield Place opened its doors in Dubai International Financial Centre (DIFC) on Sunday and welcomed its first wave of tenants, including Julius Baer, Natixis, Latham & Watkins, and Akin Gump.

The 53-storey, 1.1 million square feet commercial property offers dining, retail and community spaces alongside Grade A workspace.

EY, the building’s anchor tenant, said it expects to move into the property in October, while an Arts Club, an illustrative of which is shown below, a chef-driven food hall, health and fitness club, and a community hub, will open later this year.

Al Bakhit told Arabian Business that he remains confident in the commercial property market in Dubai post-coronavirus.

"The pandemic will pass of that I’m sure it’s just a matter of time. As companies look to provide the best work environment for their employees considering the global war on talent, ICD Brookfield Place is aligned with providing high-quality office space."

He said many features tenants are looking for today, including sustainability, efficient floor plates, better building ventilation, touch-less entry, increased security and connectivity have all been incorporated into the new building.

"The class A segment catering to a 'live, work, play' environment will ultimately fare much better than older office properties with high levels of deferred capital expenditures or those in less desirable locations," he added.

Asked whether he considered delaying the launch of ICD Brookfield Place as the pandemic continued to bite across sectors in the UAE economy, Al Bakhit told Arabian Business: "The building had been pre-leased, and our pre-committed tenants have been fitting out ready to move in so we’ve opened to accommodate their requirements."

He added: "As an office landlord, we believe it is important that we lead the return to the office and participate in getting the economy back on track. In my opinion, companies’ decisions to keep their staff working from home for the foreseeable future do not necessarily represent long term strategic shifts."

Noting a surge in enquiries for space recently, he said: "We strongly believe that office interactions are part of what makes companies successful. We recently moved into the building ourselves and are hearing from so many of our tenants that they are keen to get back to work into the physical workplace. Company culture, creativity and productivity are dependent upon sharing common spaces."

Al Bakhit cited studies showing that some companies productivity has plummeted, adding that the negative effects of remote work over the long term may not only affect companies’ culture but their very future.

"We believe that vibrant physical workplaces will remain in demand and key to corporate culture and we are confident that ICD Brookfield Place offers a unique experience that cannot be matched."

On the wider issues facing commercial property in the UAE such as supply and demand in a post-Covid world, Al Bakhit said that the age-old adage of location, location, location would continue to apply strongly in Dubai.

"Dubai is a segmented market and supply vs demand varies from location to location and building to building. There has always been strong demand for good quality buildings in good locations," he said.

He added that the DIFC northern campus has always had "very low vacancy rates due to the DIFC Freezone advantages and the quality of the amenity offering".

The opening comes as companies continue to debate the pros and cons of employees working from home in a post-Covid world.

The increased demand for flexible offices, and the growth in remote working, may have been trends that pre-dated the onset of the global coronavirus pandemic, but their influence has certainly been exacerbated by it.

Throw into the mix the requirements for social distancing and other restrictions and it is clear the traditional office set-up as we knew it, prior to Covid-19, could well be a thing of the past.