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Fashion Apparel Brand — Deal Committee Summary
Ground Floor, Unit GF-114, Main Atrium Zone, Yas Mall, Abu Dhabi · Grade A · Fashion & Apparel · 120 sqm
June 2026 · Term Sheet Stage
Indicative Recommendation: Negotiate
This fashion apparel unit at Yas Mall presents a strong site on qualitative measures — visibility, tenant mix, and accessibility all score well — but is financially stretched at the asking rent of AED 1,800/sqm/yr. The base-case OCR of 17.2% exceeds the fashion category healthy ceiling of 15%, and Year-1 effective OCR reaches 21.4% once fit-out amortisation is included. Negotiation should target AED 1,400/sqm/yr, 3 months rent-free, AED 120K landlord contribution, and a Year-3 break clause — bringing the deal within the healthy OCR range. The site justifies a premium over lower-tier Abu Dhabi assets given Yas Mall's footfall and brand profile, but the current ask is above achieved rents for comparable fashion units (AED 1,550/sqm/yr). Proceed to negotiate; do not sign at current terms.
Analytical estimates and decision-support only — not guarantees, valuations, or legal, financial, or investment advice.
71/100
Indicative Score
Viable
17.2%
Base OCR
Stretched
22.7%
Pessimistic OCR
Unsustainable
13.1%
Optimistic OCR
Acceptable
Indicative Score Breakdown
71/100Base OCR 17.2% exceeds the fashion category ceiling of 15%. Asking rent is 25% above the target rent for a healthy OCR. Viable only at optimistic sales assumptions.
Prime atrium-facing unit with strong natural footfall from main entrance. Double frontage with excellent dwell-time zone. Above-average visibility score for Abu Dhabi malls.
Strong fashion anchor adjacency — international mid-to-premium brands on both sides. High synergy with the proposed tenant's category and customer profile.
8 direct fashion competitors in-mall. Manageable but limits sales ceiling. Category saturation is below Dubai Mall levels — competitive environment is workable.
Ground floor, direct atrium visibility, two-entrance access. Strong footfall corridor from cinema and F&B anchor. Accessibility is a clear strength of this unit.
OCR Analysis — 3 Scenarios
Category healthy OCR ceiling: 15%. Base case at 17.2% means this deal is above benchmark on current terms. Target base rent for 15% OCR is AED 1,445/sqm/yr vs AED 1,800/sqm/yr asking.
Pessimistic
22.7%
Unsustainable
Sales: AED 1.44M/yr
Occupancy cost: AED 328K/yr
Base Case
17.2%
Stretched
Sales: AED 1.90M/yr
Occupancy cost: AED 328K/yr
Optimistic
13.1%
Healthy
Sales: AED 2.50M/yr
Occupancy cost: AED 328K/yr
21.4%
Year-1 True OCR
incl. fit-out amort.
AED 2.52M
Break-Even Sales
for healthy OCR
AED 385K
5-Yr NPV
at 12% discount rate
27.8%
Blended IRR
5-year projection
Total Occupancy Cost Breakdown
| Component | AED/sqm/yr | Annual AED | % of total |
|---|---|---|---|
| Base Rent | 1,800 | 216,000 | 65.9% |
| Service Charge | 700 | 84,000 | 25.6% |
| Marketing Levy | 130 | 15,600 | 4.8% |
| Chilled Water | 100 | 12,000 | 3.7% |
| Total Occupancy Cost | 2,730 | 327,600 | 100% |
AED 36K
Rent-Free Saving
2 months commercial
AED 420K
Net Fit-Out Capex
after AED AED 60K contribution
3.1 yrs
Payback Period
of 5-yr lease
5-Year Rent Escalation Projection
5% annual escalation| Year | Base Rent/sqm | Total Cost/yr | OCR (base sales) |
|---|---|---|---|
| Year 1 | AED 1,800 | AED 328K | 17.2% |
| Year 2 | AED 1,890 | AED 337K | 17.7% |
| Year 3 | AED 1,985 | AED 347K | 18.2% |
| Year 4 | AED 2,084 | AED 357K | 18.8% |
| Year 5 | AED 2,188 | AED 367K | 19.3% |
Benchmark Comparison — Fashion & Apparel Category
Asking vs achieved rent across comparable UAE malls for fashion/apparel. Source: SiteScore benchmark data, Q2 2026.
Risk Flags
OCR 17.2% exceeds healthy ceiling
Fashion category target is ≤15% OCR. At base-case sales the deal runs 2.2 percentage points above the healthy ceiling — every AED 100K shortfall adds ~0.5% to OCR.
Rent 25% above target for healthy OCR
Target base rent for 15% OCR is AED 1,445/sqm/yr. Landlord is asking AED 1,800/sqm/yr — a 25% premium vs benchmark-justified rent.
Year-1 True OCR 21.4% including fit-out
When fit-out amortisation is factored in, Year-1 effective OCR reaches 21.4% — in distressed territory. Viable from Year 2 if sales track the base case.
5% annual escalation compounds pressure
Base rent escalates 5%/yr. By Year 5, effective base rent reaches AED 2,188/sqm/yr. Total occupancy cost reaches AED 367K/yr.
8 direct fashion competitors in-mall
Category saturation is manageable but present. Limits sales ceiling and increases customer acquisition cost for a new entrant.
Negotiation Playbook
Structured prompts for your own negotiation review — generated from the illustrative inputs and indicative benchmark data above.
Counter rent at AED 1,400/sqm/yr
22% reduction from AED 1,800 asking. Positions base-case OCR at ~14.7% — within the 15% healthy ceiling and defensible with Abu Dhabi category data.
Increase rent-free from 2 to 3 months
3 months commercial rent-free = AED 54K savings in Year 1. Reduces effective Year-1 OCR and improves payback timeline to under 3 years.
Increase landlord fit-out contribution to AED 120K
Current offer: AED 60K. Market benchmark for A-grade Abu Dhabi malls is AED 900–1,200/sqm. For 120 sqm, AED 120K is mid-market and defensible.
Cap escalation at 3% from Year 3
5% annual escalation reaches AED 2,188/sqm by Year 5. A 3% cap from Year 3 saves AED 38K over the lease term and keeps OCR below 17% at base case.
Include a Year-3 break clause
Given the OCR stretch at base case, a Year-3 break protects against underperformance and gives leverage if the landlord resists on rent. Standard on stretched deals.
Advisory Notes
Nancy Saade
13+ yrs · UAE Retail Leasing
Yas Mall achieved fashion rents average AED 250/sqm below asking — landlords in Abu Dhabi A-grade malls expect a counter and will negotiate, especially for international brands.
Request a copy of the last 2–3 signed leases for comparable fashion units in the same zone as part of your due diligence package.
The rent-free period is your easiest first lever — 3 months is standard for this category in Abu Dhabi and rarely refused for a credible brand.
If the landlord holds on base rent, push harder on the fit-out contribution. AED 120K is mid-market for a 120 sqm unit — you have a strong case.
Year-5 rent reaches AED 2,188/sqm with uncapped 5% escalation. Propose a 3% cap from Year 3 or a rent review clause tied to CPI.
Leasing Manager View
Tenant Viability: ViableAED 1,550/sqm
Effective Rent
12%
Renewal Uplift Room
AED 38K
TOR Upside (Opt.)
International fashion tenants have strong renewal probability if the brand trades well — this is a low-churn category for landlords at Yas Mall.
At AED 1,400 counter rent, effective rent after rent-free and contribution is approximately AED 1,230/sqm — below achieved market for this zone. Landlord has room to settle at AED 1,500.
A turnover rent clause above AED 2.5M sales (additive at 6%) gives the landlord upside participation without requiring base rent resistance — worth proposing as a concession.
The Leasing Manager View shows how the landlord likely sees this deal — useful context for anticipating their counter-offer.
Final Indicative Decision
Negotiate — Do Not Sign at Current Terms
The site quality justifies a Yas Mall premium, but the current rent of AED 1,800/sqm/yr is 32% above the OCR-justified target of AED 1,364/sqm/yr. A counter at AED 1,400/sqm/yr, 3 months rent-free, and AED 120K fit-out contribution brings this to near-Acceptable territory. Do not sign without these concessions.
Illustrative example only. This scenario uses an anonymised real deal structure. The tenant name is fictional and the location is used for benchmark context only. All rent figures are drawn from real Abu Dhabi market data (Q2 2026). Real evaluations are generated from your own inputs and UAE benchmark data. How we calculate scores →
SiteScoreAE provides analytical estimates and decision-support tools based on available and user-supplied information. Results are not guarantees, formal valuations, legal advice, financial advice or investment recommendations. Users must independently verify information and obtain appropriate professional advice before making commercial decisions. Full disclaimer.
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