Home ›› 07 Apr 2022 ›› Front
The much-coveted commercial vicinity Motijheel is gradually losing its shine as a business-friendly destination as corporations are moving to other places across the capital.
The high maintenance cost coupled with the pandemic-induced downturn in business forced many businesses to shy away from Motijheel leaving a lot of earlier office building spaces open for rent.
The well-known Dhaka Stock Exchange (DSE) has already shifted to its own office in Uttara while the DSE-related many brokerage houses have also followed suit.
Chattogram Stock Exchange (CSE) has also left Yunus Tower while Bangladesh Securities and Exchange Commission (BSEC) relocated to Agargaon area from Jiban Bima Tower.
Not only the central offices of share market, many banks and multinational companies wrapped up their central offices from Motijheel and merged them into one elsewhere.
A household name in Motijheel is Yunus Tower, a 22-storey building equipped with modern features. The tower had been the centre of attraction for many top businessmen and industrialists for the past several years.
But the pandemic-driven economic crisis has thrown up a different picture, with the building owner putting up several advertisements for space rent – a rare phenomenon within a decade.
Over the past two years, the portrait of Motijheel area has changed completely while the footpaths are lacking in adequate numbers of hawkers.
Tanvir Ahmed, general manager and Human Resource Department chief of Padma Group that owns Yunus Tower, told The Business Post that in the last one year a number of banks including Bangladesh Commercial Bank, IDLC, leasing organisations and brokerage houses have left the tower aiming to curb their expenses.
Many multinational companies have shifted their offices to Gulshan and Banani areas.
“We never had to advertise for space rent since the tower was built that has 24/7 security, lift and excessive usable space compared to other commercial buildings in the area. But recently our income has shrunk by at least 30 to 35 per cent,” Tanvir stated.
This problem emerged last year while the rent was reduced for many tenants and still space is being rented at cut-rate, he said, adding that, “some interested tenants are approaching us but we are not renting space without ensuring their economic condition.”
BRAC EPL Investment former chief research officer Debbabrata Kumar Sarkar told The Business Post that in the past 3 to 4 years around six to eight banks have relocated their headquarters to elsewhere from Motijheel.
Among them are Shahjalal Islami Bank, Prime Bank, Trust Bank, Eastern Bank, Jamuna First Security Bank, Dhaka Bank and AB Bank that have set up their offices in Gulshan while many other banks are constructing building for their head offices in Gulshan as well.
“Business does not get along the same way. Normally large banks and financial organisations follow the path of top businessmen and open their branches at convenient places,” said Debbabrata.
“Many large businessmen left Motijheel area due to excessive traffic congestion triggered by the construction of metro-rail and also due to shifting of the DSE.”
Industry sources cited a number of reasons why many businesses have shifted to Gulshan and Banani areas from their headquarters in Motijheel and Dilkusha commercial areas.
Large and medium corporations have shifted to posh areas like Gulshan and Banani due to their relative proximity to Dhaka airport than downtown Motijheel. Besides, the attraction of the diplomatic zone in the area, a number of star hotels, and quality fast food outlets are also located in Gulshan and Banani that have wooed many local and multinational companies.
Furthermore, perennial gridlocks worsened by metro rail-related construction in Motijheel have frustrated many top executives and owners of corporations, and that is why they have opted for Gulshan and Banani as most of their residences are also in the same area.
Renting out their own commercial buildings in Gulshan area at higher rates to listed firms where they have significant shareholdings is another major reason why big corporations said goodbye to Motijheel, industry people said.
Most brokerage houses were located near the DSE and Madhumita Cinema Hall Bhaban. Although some brokerage houses are still working at DSE Bhaban as the latter is still using a portion of the building but is lacking in earlier zest.
The case is same for Madhumita Cinema Hall Bhaban, NCC Bank Bhaban or Bhuiyan Mansion, Rahman Mansion while Motijheel’s Banglalink office is still waiting for tenants. The telecom company put up advertisement for space rent for a long time.
Currently, a significant number of advertisements for space rent or To-Lets are visible from Shapla Square to Madhumita Cinema Hall and from near the road of Metlife Building to Jibon Bima Building.
After visiting the Motijheel area, The Business Post correspondent saw more than 100 To-Lets. The high-rise buildings were seen lucrative from outside but were empty inside.
City Centre, Biman Bhaban, Bangladesh Tea Board Bhaban, People’s Insurance Bhaban and many other buildings have space rent advertisements.
Currently, tenants and office space seekers will have multiple options to choose from the large number of To-Lets according to their affordability.
But over the past 10 years, managing an office space in Motijheel area was a hard job while many had to pay high price for office space bookings.
Once every floor of Madhumita Cinema Hall building had brokerage houses or banks, now the situation is different.
Motijheel area was filled with chaos of office staff and businessmen of share markets till 2020, but now although every high rise building accommodates a few offices, they are lacking in buzz and enthusiasm of share market, said Safayet Hossain, a book seller in front of the DSE Bhaban who has been selling books on economics and law there for the past three years.
“As the DSE has relocated, no investors are seen in the area. Since financial reports of different companies are now available online, none wants to buy books spending money nowadays,” he pointed out.
Before the pandemic, at least 20 to 50 books used to be sold in a week but now it’s difficult to sell five books weekly, added Safayet.
To-Let was also hung on the wall of People’s Insurance Bhaban, Bangladesh Chemical Industries Corporation, Yunus Chamber and Jibon Bima Bhaban.
A 16-square feet and 32-square feet space are empty on the second and sixth floor of Bhuiyan Manson respectively while the owner said per square feet will be rented at Tk 100 and Tk 45 on the second and sixth floor.
Two floors each with 4,600-square feet are open for rent in Noor Manson while another 2000-square feet space is to be rented out in Rahman Chamber.
An advertisement for 3000-square feet space for rent was hanging on two floors of Phoenix Finance building.
“The rent was cut by a half during the Covid-19 crisis but still we are not getting desired clients,” said the Phoenix Finance manager.
On the other hand, small traders on Motijheel footpath also expressed their frustration over the downturn in business.
The infrastructure of metro rail is visible in Motijheel but it has significantly reduced the space for hawkers. Moreover frequent eviction drives of the city corporation put double burden on the small businesses.
Anis, a shirt seller in front of Sonali Bank in front of Shapla Chattar, said his sale has come to a half after the pandemic.
During this time office of Nexus Securities Limited has been moved to Purbani Anex Building in Motijheel from Shahnewaz Bhaban.
Enamul Hasan who used to work for Nexus Securities told The Business Post that the company moved last year since its owner had been changed.
“I am now working as a senior executive for Sonali Securities Limited. The business locations normally change after 10 to 12 years. Besides, the centre of trade has shifted as the DSE also moved elsewhere from Motijheel,” he added.
The reduction of crowd is also evident in hotels and restaurants. Most popular two hotels in Motijheel are Ghoroa and Hirajhil whose owners said their sale has gone down drastically and they are struggling to pay their staff.
Shahidul Islam, chairman of Motijheel Ghoroa Hotel and Restaurant Limited, told The Business Post that their business is persistently down while at the same time the costs of livelihood are rising constantly. So people have lost their capacity to spend money.
Besides, due to recession in the share market, people don’t come to Motijheel that much, he added.
“Once we were the top restaurant in Motijheel, and earned enough. But now it is difficult to pay my staff,” said a frustrated Shahidul.
“We can’t escape the government Vat and tax. The prices of daily essentials are going through the roof, but not the earnings simultaneously.”
Shahidul said many offices have left Motijheel and almost every building has free space to rent out. Amid such condition, there is no way but to wait till the metro rail gets off a good start.
