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Whether you are setting up a new venture, opening a branch company or relocating your business, there are several essential considerations that you need to factor into your plan before you decide to sign on the dotted line.
Location – Pundits wouldn’t coin the word “location, location, location” unless it does not carry too much weight when it comes to choosing an area to rent (or buy). Location is either a deal maker or a deal breaker, so ensure you conduct painstaking research about it. It is understood that premium locations are attractive to clients because they add value to the business or boost its brand image, but they also command premium prices. Nevertheless, if a good location means good returns, then do not think twice.
Budget – Leasing a commercial space, whether it is an office, a warehouse, a retail unit, a storage yard or industrial land where you can build your own premises, entails careful budget planning. Aside from the “initial outlay” (rent or construction cost), also include in your budget utility fees, service, maintenance and repair charges, legal fees, moving costs and many other miscellaneous expenses.
Expansion – Size matters and commercial lease terms generally mature in five years. If you can foresee your business expanding in two to three years, it is advisable to take up a bigger space now to accommodate future growth and expansion. For start-ups which want to test the waters first and for short-term enterprises, there are several smart solutions available such as flexi desks and business centres.
Legalities – As they always say, pick a RERA-certified real estate agent to help you find the best solution that meets your business requirements in an honest and transparent manner. Also hire a legal professional to explain to you the terms of the lease and your rights as a tenant.
• Consider the property size if you can foresee future expansion
• Hire a lawyer to explain to you the lease terms and your rights
• Aside from rent, include miscellaneous expenses in the budget
Check out more tips on renting in Dubai.
Source: Ellen Joyce Soriano, Special to Properties
The writer is a freelancer