Guidelines For Commercial Leases in Dubai For Tenants

5/5 - (2 votes)

Dubai is a bustling commercial hub that attracts business professionals from around the globe, including entrepreneurs, start-ups, and multinational corporations. There is no doubt that Dubai offers businesses of all sizes the opportunity to expand and prosper in a business-friendly environment with a strategic location. There are several legal and practical considerations that need to be taken into account if you’re a tenant looking to apply for an apartment on It’s essential that you understand these considerations. Our purpose in this blog post is to provide you with essential guidelines that will help you navigate the commercial leasing market in Dubai and make informed decisions that will meet your needs as a business owner.

Qualifications for leasing commercial property

When it comes to leasing commercial property, there are several qualifications that landlords typically consider before entering into a lease agreement. These qualifications help ensure that the tenant is financially stable and capable of fulfilling their obligations throughout the lease term.

Selecting an appropriate commercial property

When selecting an appropriate commercial property for your business, it’s essential to consider several factors that align with your specific needs and goals.

It’s advisable to consult with real estate professionals, such as commercial brokers or agents, who can assist you in finding suitable commercial properties that meet your requirements. Conducting thorough due diligence and considering these factors will help you select an appropriate commercial property that supports your business objectives and sets you up for success

Choose between fitted and shell units

Fitted units refer to commercial spaces that have been pre-designed and customized with fixtures, finishes, and necessary installations. These units are typically ready for immediate occupancy and often include features like partitioned rooms, lighting, flooring, HVAC systems, and basic amenities such as restrooms and kitchenettes.

 Understand the tenancy agreement length

The length of a commercial tenancy contract can vary depending on several factors, such as the agreement between the landlord and tenant, local laws and regulations, and the specific terms negotiated by the parties involved. Typically, commercial leases can range from a few months to several years, with common durations being one, three, five, or ten years. It’s best to consult the terms of the specific contract or contact the relevant parties involved to determine the length of a commercial tenancy contract.

Dubai commercial property rent: how to pay?

In Dubai, the payment terms for commercial property rent can vary depending on the agreement between the landlord and tenant. However, here are some common methods of payment

It’s important to review the terms of your commercial lease agreement to understand the specific payment methods and schedule outlined by the landlord. If you’re unsure or need further clarification, it’s advisable to reach out to the landlord or the property management company overseeing the rental property to get accurate and up-to-date information on the payment process.

Make sure you understand any fees and charges

  1. Agency Commission:
  2.  Ejari Registration:
  3. Ejari is the online registration system for tenancy contracts in Dubai.
  4. Utilities and Service Charges:

It’s crucial to thoroughly review the terms of your lease agreement and discuss any fees and charges with the landlord or property management before signing the contract. This ensures clarity and prevents any surprises regarding financial obligations during the tenancy period

Dubai early lease termination

In Dubai, early lease termination is governed by the laws and regulations set forth by the Dubai Land Department (DLD) and the terms outlined in the lease agreement.

It’s important to consult with a legal professional or seek guidance from the Dubai Land Department (DLD) to fully understand the legal implications and specific procedures for early lease termination in Dubai. They can provide you with the most accurate and up-to-date information based on the current laws and regulations in the Emirate

Changing the property’s interior

Remember, the specific rules and regulations can vary depending on the property type, location, and local laws. It’s advisable to consult with your landlord, property management company, or seek legal advice to understand the precise requirements and obligations related to modifying the interior of a property in Dubai.

Obtaining electricity, cooling, and water connections

When leasing a commercial property in Dubai, obtaining electricity, cooling, and water connections is an essential part of setting up your business operations.

What is the fit-out time?

The fit-out time refers to the duration required to complete the interior fit-out of a commercial space. It is the period during which the necessary modifications, installations, and finishing touches are made to transform an empty or bare space into a functional and customized environment suitable for the intended business operations.

Taking on commercial leases

Taking on a commercial lease is a significant commitment and requires careful consideration. Here are some guidelines to follow when considering and taking on a commercial lease:

  1. Determine your requirements: Clearly define your business needs and identify the specific requirements for the commercial space. Consider factors such as location, size, layout, amenities, accessibility, and proximity to your target market or suppliers.
  2. Conduct market research: Research the local commercial real estate market to understand rental rates, trends, and availability in your desired location. This information will help you assess whether the lease terms are competitive and negotiate effectively.
  3. Seek professional advice: Engage the services of a commercial real estate agent or advisor who specializes in leasing to assist you in finding suitable options. They can provide valuable market insights, help you identify suitable properties, and guide you through the leasing process.
  4. Review lease terms and negotiate: Thoroughly review the lease agreement and ensure you understand all terms and conditions. Pay attention to details such as lease duration, rent escalation clauses, renewal options, maintenance responsibilities, and any restrictions or requirements. Negotiate with the landlord to secure favorable terms that align with your business needs.

Search your commercial properties

To find commercial properties, I recommend using online real estate platforms, reaching out to local real estate agents specializing in commercial properties, or consulting with property management companies in your desired location. They will be able to provide you with up-to-date listings and assist you in your search for suitable commercial properties

Remember to thoroughly research and consider factors such as location, size, amenities, and lease terms when evaluating commercial properties. It is also advisable to consult with professionals and legal experts to ensure a smooth and informed decision-making process.