Things to know before renting commercial property in Dubai

• Before Leasing
• After Leasing
• Rent Payment
• FAQs

Entrepreneurship is a challenging game that constantly keeps you on your toes. You must work hard to ensure everything runs smoothly and the business thrives. One critical aspect of this venture is finding suitable premises to set up and run your business operations from. Setting up a business in Dubai has its fair share of challenges, including renting a commercial space in Dubai. Here are the things to know before renting commercial property in Dubai.

WHAT TO DO BEFORE YOU RENT A COMMERCIAL SPACE IN DUBAI

• Eligibility
• Location
• Office Types and Visas
• Professional Advice
• Required Documents
• Budget
• Types of Lease Agreements

We’ve divided our renting a commercial property in Dubai guide into three essential parts: the pre-leasing phase, the after-leasing phase and rental payments. So, let’s start with what to do before renting commercial space in Dubai.

ARE YOU ELIGIBLE TO RENT A COMMERCIAL SPACE IN DUBAI?

Before launching your brick-and-mortar business, you must determine your eligibility for renting commercial units. Remember, you can only rent a commercial property in Dubai with a valid trade licence. Go through our guide about different types of trade licences in Dubai to find which one you could apply for.

Getting a trade licence also helps you narrow down the locations that offer the different types of commercial property in Dubai. The licence-issuing authority depends on where you plan to set up your business. The Dubai Economic Department is responsible for issuing all licences for onshore companies.

Suppose you want to set up your business in a free zone. In that case, the licence is issued by the respective free zone authorities like Dubai Silicon Oasis (DSO), Dubai Multi Commodities Centre (DMCC) and others. Here are the general requirements for opening a business in a free zone.

Make sure you learn about eligibility for renting commercial space in Dubai at the start of your process.

FIND THE RIGHT LOCATION TO RENT A COMMERCIAL PROPERTY IN DUBAI FOR YOUR BUSINESS

There are several things to do before renting commercial spaces in Dubai. Also, different commercial licences are available for those running companies in Dubai. Based on your licence, you must identify the best areas to rent a commercial property in Dubai for your business.

For instance, if you have a TECOM-free zone licence, you must have your commercial workspace in the same area. Other things to consider include:

• The viability of the business from the location of your choice.
• The area’s accessibility for the target customers generates enough footfall if your space is a showroom for walk-in customers.
• The availability of adequate parking space for the number of employees you have.

Research is important when deciding where to rent office space in Dubai. Based on your trade licence, put in the work before you decide to rent a commercial space in Dubai.

97,031 rent transactions for offices in Dubai were conducted in H1 2024, worth almost AED 6.1B!

OFFICE TYPE AND EMPLOYEE VISAS

Companies are allowed to offer visas to foreign workers based on their expertise. However, this privilege is restricted by office type and space:

• Up to three visas for a company operating in a Flexi-desk (shared office).
• Up to five visas are allowed for a company with a serviced office.
• A company operating in a physical space can apply for visas based on its office-covered area. You need one visa for every nine square meters.

GET PROFESSIONAL ADVICE WHILE RENTING COMMERCIAL PROPERTIES IN DUBAI

If you want to rent an office in Dubai, it’s important to consult a real estate agent. Specific criteria must be met when renting commercial properties in Dubai, especially in the F&B or healthcare sectors. Even if your business is different, it’s still recommended to work with a real estate agent because:

• They can advise you when renting a commercial property in Dubai.
• Their knowledge of the average asking price, market trends and other valuable information puts them in a better position to negotiate on your behalf and close the best deal.

While having a real estate agent on your side is beneficial, ensure you do your homework. Before meeting the agent, prepare a list of questions about the potential workspace for rent in Dubai. Think of essential aspects like:

• The number of cheques for rental payments
• Access to public transport
• Required permissions, etc.

You can also start your research by reading our expert guide on commercial properties in Dubai.

MAKE SURE ALL THE REQUIRED DOCUMENTS ARE IN ORDER

There are clear rules regarding the purpose of commercial properties in Dubai. Your office cannot double up as a warehouse and vice versa. Hence, you should have all the necessary documentation in place. This includes, but isn’t limited to:

• Proof of business ownership
• The status of the premises
• Compliance of the premises with the existing plans
• The necessary permits to use the premises

All real estate transactions in Dubai, including commercial rentals, are regulated by Ejari. So, it’s important to ensure all contractual terms and conditions are duly mentioned in the contract to avoid any disputes later.

If your choice of commercial property for rent in Dubai needs modifications, such as installing cubicles, make sure it is mentioned in the contract. Ensure that all the information about your business is registered correctly, including your business’s nature, so there is no dispute.

FACTOR IN YOUR BUDGET

Budget is one of the most important things to remember while renting a commercial space in Dubai. Besides the annual rent, you need to consider the security deposit and other costs associated with the property before finalising a decision.

Also, research the potential rent increases using the RERA Rent Increase Calculator so that you don’t get any unpleasant surprises when renewing the tenancy agreement for your office in Dubai.

TYPES OF LEASE AGREEMENTS

Types of lease agreements are a key consideration in the list of things to know before renting commercial property in Dubai.

You can agree upon four common types of lease agreements in Dubai.

GROSS LEASE

In a gross lease, the tenant must pay a pre-decided monthly rent, whereas the landlord is responsible for other expenses like insurance, taxes and maintenance.

LAND LEASE

As the name suggests, the tenant pays for the piece of land to construct a building to conduct business. At the end of the lease, the landlord gets possession of the land and the building.

TRIPLE NET LEASE

With the triple net lease, the tenant is responsible for taxes, insurance, maintenance and rent. This type of lease favours landlords.

MODIFIED NET LEASE

In a modified net lease, all expenses are shared between the tenant and the landlord. This is quite commonly used by those who rent commercial property in Dubai.

WHAT TO DO AFTER RENTING A COMMERCIAL PROPERTY IN DUBAI

• Make Arrangements
• Property Interiors
• Sub-letting
• Early Termination of Lease

Once you find the right commercial property for rent in Dubai and sign the lease, here’s what you need to do:

MAKE THE RIGHT ARRANGEMENTS ONCE YOU HAVE SIGNED THE LEASE

After signing the lease for renting commercial properties in Dubai, you need to:

• Get electricity and water connections from DEWA.
• Get insurance against damage to property to ensure business continuity.
• Make arrangements for the interior decor of the office space. You may need to hire a specialist if you’ve rented a shell and core property. There are some top interior design companies in Dubai that you can consider for the job. After all, when investing a fair bit in renting a commercial property in Dubai, it makes sense to make it look presentable to potential customers.

While you’re at it, consider the costs related to all of these things when setting aside your budgets for commercial leasing in Dubai.

CHANGING THE PROPERTY INTERIORS

It’s not mandatory, but ensure you do it properly if you need to make interior alterations. First, the clause should be mentioned in your rental contract and agreed upon by the landlord.

Once that is done, you need to obtain a Non-Objection Certificate (NOC) from:

• The landlord
• The Building Manager/Developer
• Dubai Municipality or Free Zone Authority

Remember, when renting a commercial space in Dubai, you cannot change the property without permission.

SUB-LETTING DUBAI COMMERCIAL PROPERTY

“Is it allowed to sub-let commercial property in Dubai?” The answer is yes. You can sublet your office space in Dubai with written approval from the landlord. Also, add the sub-letting clause to the contract before finalising the lease to avoid confusion and dispute.

EARLY TERMINATION OF A COMMERCIAL RENTAL LEASE IN DUBAI

One year is the standard duration of a commercial property lease in Dubai. The tenant and landlord can mutually agree to end the contract at the end of one year. However, the contract is automatically renewed for another year if they don’t end it or make changes to it.

You may be penalised if you opt for the contract’s early termination to rent a commercial property in Dubai. In this case, the landlord can demand compensation for the losses incurred on not completing the contract term. This can be in the shape of two months’ rent. If there is any major dispute, both parties can take their case to Dubai’s Rent Dispute Settlement Centre.

Read our guide to ending the tenancy agreement early in Dubai to learn more.

PAYING RENT FOR COMMERCIAL PROPERTY IN DUBAI

Rental payments in Dubai are mostly made through cheques, regardless of the type of property you’re leasing. Cheques for commercial properties can be issued from the owner’s or company’s bank accounts.

The payment of rent can be made by one or multiple cheques depending on what is agreed between the landlord and the tenant. A security deposit of 5% of the rental contract’s value is also payable.

FAQS ABOUT HOW TO RENT COMMERCIAL PROPERTIES IN DUBAI

WHAT ARE THE DIFFERENT TYPES OF COMMERCIAL PROPERTIES AVAILABLE IN DUBAI?

You can easily find shops, warehouses, showrooms, buildings, land plots and office spaces for rent in Dubai. If you’re not interested in renting, you can buy commercial properties in Dubai.

WHAT IS THE DIFFERENCE BETWEEN FITTED UNITS AND SHELL AND CORE UNITS?

Commercial properties for rent in Dubai are available in either shell & core or fitted forms. When you opt for a shell and core unit, you get a space without fixtures and furnishings. Toilet facilities and pantry, however, are primarily available in the building’s common areas. These units give you greater flexibility to design your office space according to your needs.

Fitted units are usually fully equipped with the basic structure you need to kickstart your business operations. These units usually feature office desks, furnished meeting rooms and sometimes a reception area. Fitted units are generally more expensive than shell units. Those looking for a commercial space for rent in Dubai can consider both options.

DO YOU HAVE TO REGISTER EJARI WHEN RENTING A COMMERCIAL SPACE IN DUBAI?

You must register Ejari online even when renting a commercial property in Dubai. While the process remains the same, the required documents may vary based on your circumstances. Learning how to register Ejari is one of the things to know before renting commercial property in Dubai.

That’s all we have for you for now. Finding the perfect premises for your office, warehouse or store is one way to ensure a successful start to your business venture. Consider all the above factors when renting a commercial space in Dubai. Some of Dubai’s best areas to rent office spaces include Business Bay, Deira and Jumeirah Lake Towers (JLT).

Following these tips for renting commercial space in Dubai will ensure you don’t make any obvious mistakes. To better understand the emirate’s real estate market, it always helps to educate yourself on Dubai’s common real estate terminologies. It would also be helpful to acquaint yourself with the commercial company law amendments.

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