𝗙𝗿𝗼𝗺 𝘁𝗵𝗲 𝗗𝗲𝘀𝗸 𝗼𝗳 𝗣𝗵𝗶𝗹 𝗠𝗰𝗔𝗿𝘁𝗵𝘂𝗿

Chairman & Founder, PHIL McARTHUR & PARTNERS

Across the MENA region, retail real estate continues to evolve at pace. Large-scale mixed-use developments, destination assets, and lifestyle-led environments are increasingly central to urban growth strategies. As these destinations mature, the leasing frameworks that underpin them are being re-evaluated.

Traditional leasing models were shaped by in-store transactions and fixed measures of performance. Today’s consumer journey is omni-channel, experience-led, and highly dynamic. Physical stores now operate as brand platforms, engagement environments, fulfilment points, and drivers of digital sales. Leasing structures must reflect this broader role.

Market leaders are moving towards a leasing toolbox approach. This recognises that no single model is universally applicable across asset types or markets. The toolbox includes hybrid rent structures combining fixed and performance-linked components, more adaptive lease terms, and performance metrics that extend beyond pure turnover. Measures such as footfall contribution, dwell time, conversion, and destination relevance are increasingly used to understand how value is created within integrated retail environments.

In the MENA context, this shift aligns closely with the region’s emphasis on

placemaking. Successful destinations are defined by curation, experience, and repeat visitation. The role of the landlord is evolving from space provision to place creation, supported by data, active asset management, and closer collaboration with occupiers.

High-quality physical retail remains fundamental to successful omni-channel strategies. Prime locations, strong tenant mixes, and experiential anchors continue to underpin long-term asset value and resilience. The challenge is ensuring that leasing frameworks accurately reflect performance, risk, and partnership in a rapidly changing environment.

There is no universal solution. Leasing strategies must respond to asset typology, market maturity, and brand positioning. The opportunity lies in adopting flexible, transparent structures that support sustainable growth for owners, occupiers, and the destinations they create.