Renting commercial property isn't as straightforward as renting an apartment or villa. Because the nature of businesses vary, there is no one standard for renting one. This can make it confusing for any first-time commercial property renter. For businesses that require owners to go to clients, instead of hosting clients, the dilemma of choosing an office space may be solved with a home office or through a shared working space, which are readily available in Dubai through business centers and hubs. When researching trade license options, you'll find that some freezones include office space in your licensing package. This is what co-owners Rama Alsayegh and Serene Touma encountered when they started searching for an office space for their firm Purple PR. "We opted to set up our business through Sentinel Business Centers, a serviced office facility and business set-up firm. In addition to a fully furnished private office space with nothing to set up, all PRO and business set-up services were at our disposal, making it much easier to be up and running without the headache of endless trips to the DED, or paperwork to fill out. Given what we were getting in return, the costs have always been, and remain to be, reasonable and justifiable," Alsayegh said. There may be special requirements businesses need to operate. This is why most start-up business owners we spoke to opted to work within freezone areas, as packages often come with a choice of office space. When asked about their criteria for establishing a head office, Kilma Creative Studios owner Salim Dahman said his location shortlist was either Jumeirah Lake Towers (JLT) or Jumeirah Beach Residence (JBR). He wanted the amenities of a freezone while remaining located at the heart of 'the new Dubai area'. The company set up in JLT, which Dahman felt was more suitable for Kilma's type of business. "Working within a freezone has its perks. Our goal was to set up our office as quickly and as efficiently as possible and DMCC in JLT were very professional and facilitated all our requirements accordingly," Dahman said. As a recording studio, one of the special conditions for Kilma was that they needed to soundproof the whole office. Of course, freezones are generally conducive for companies that offer a particular service. Those offering general trading products and consumer services need to be located in retail and leisure areas for consumer convenience and visibility. For The Urban Yogi owner Nisha Varman Shetty, the main idea behind her eclectic furniture and crafts' company is sustainable, luxury living: this was a major factor in looking for retail space. The company uses pop-up stores in shopping malls to showcase their collections, as well as digital media to market/catalogue its products and promote featured artisans. So far, The Urban Yogi has got support from the Dubai Ladies Club, Mercato Mall, and Dubai Marina Mall. To get the pop-up stores established, Shetty needed to have a trade license, DED approval, and a bank account. Here are a few pointers to keep in mind on choosing where to set up shop.
1 - Define the functions of the property. 2- Define the length of time you'll stay in the premises. 3 - Consider going through a broker.4 - Consider whether or not you need maintenance services. 5 - Find out what amenities are available, e.g. free parking. 6 - Consider going over the lease contract with a lawyer. 7- Find out what the rental cap is. 8 - Find out how flexible the lease agreement is before you sign it. 9 - Have an exit plan. Commercial property leasing in Dubai According to property consultants Better Homes, here are the four major types of commercial property leasing available in Dubai: Gross lease - A general lease where the tenant has to pay fixed amount as rent while the landlord pay other charges like property maintenance (single and multi-story office buildings). Triple-net lease - The tenant pays a considerable amount of other asset-related expenses like tax, maintenance charges, and insurance along with property rent. Land lease - This is usually held for a longer period of time. Here, the tenant is allowed to construct a building on the leased land. At the end of lease the owner gets the land with the building. Modified net lease - This is described as a cross between a gross lease and triple-net lease. Here, tenants and owners share all the property related charges like taxes, maintenance and insurance (industrial properties, retail or multi-tenant).
