LEASE TERM

Typical lease length

Space under 1,500 sqft
1 to 3 year term with an option to renew (for a term) equal to or more than the original term.

Space over 1,500 sqft
3 to 5 year term with an option to renew (for a term) equal to or more than the original term.

Rents quoted in

AED/sqft/annum on net leasable area. May include service charges.

Break options

Landlords will typically require a break clause to be supported by a 3 to 6 month notice period, often accompanied by a penalty.

 

LETTABLE AREA REPAIR RESPONSIBILITY

Internal

Minor Repairs
Ranging between AED 500-2,000 responsibility of the Tenant. Usually a predetermined amount agreed in the lease agreement.

Major Repairs
Structural & MEP is the responsibility of the Landlord.

Common Areas

Landlord

Service Charges

Usually included in rent.

External/Structural

Landlord responsibility.

 

OPERATING EXPENSES

Service Charges - Class A building

Service charges in a Grade A building typically range from AED 20-35 AED/sqft/ annum.

Service Charges - Strata Titled Buildings

Service charges paid by the Landlord.

Service Charges - Single Landlord Building

Rent and service charges are segregated and paid by the Tenant.

Additional Costs that the Tenant Pays

• Legal and other professional fees PM, technical due diligence.
• Utility connection and consumption/ services, for example IT.

 

RENTAL PAYMENTS

Frequency of Rent Payable

Typically annually, however can vary from 1-4 payments over the year.

Basis of Rent

Rent normally escalates annually in line with CPI. Renewal escalation in line with RERA rental index regulations.

Frequency of Rent Review

Typically at the end of the contract term.

 

SPACE MEASUREMENT

Standard

The area quoted is known as net lettable area. This comprises net area excluding walls, structural columns and common areas.

Efficiency

Typically above 75%.

 

TENANT'S FIT-OUT

Construction

The tenant usually undertakes the fit-out with their own contractors. Design approvals by the local regulatory body.

Fit-out allowances

Some landlords provide fit- out allowances or rent-free periods, typically ranging between 2-6 months depending on the lease term.


*The above information is intended to be used as a guide only, and may vary relative to normative market conditions. The above information is for marketing purposes and does not constitute advice.
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