Commercial leasing options in Dubai

Commercial leasingImage Credit: Supplied

Dubai has a host of commercial leasing options available for prospective tenants. Listed below are a few popular ones:

Triple-Net Lease: A very common lease used here in Dubai, this entails the tenant paying a fixed percentage of the expenses which can range from maintenance to insurance and of course, rent. In this type of lease, both the landlord and the tenant benefit as the landlord receives payment for some expenses while the tenant benefits from a reduced rent.

Modern Net Lease: In this type of lease, both the landlord and the tenant divide any charges. For instance the landlord will pay the maintenance charges while the tenant will pay the insurance.

Land Lease: In this, land is rented to the tenant by the landlord and the tenant thereby builds the building on this land. While these are longer leases, once the lease date is expired, the land as well as the constructed building, belongs to the landlord.

Gross Lease: Mostly used in warehouse spaces, office properties and retail leases, this lease is when the landlord incurs the bulk of the expenses involved with the property. This is often transferred onto the tenant in rent increments.

Single Net Lease: In this type of lease, the tenant bears responsibility for the taxes accrued on the property as well as the rent, while the owner takes care of all the maintenance fees.

Percentage Lease: This is usually the type of contract for retail stores where the lease is based on the monthly revenue intake from the particular commercial space plus the base rent no matter the profit earned.

Double Net or “NN” Leases: Here the tenant pays for property insurance and other property expenses. The landlord pays for maintenance as well as any repairs to be done to the property

Handy Hints
• Most common type used by tenant investors is the triple-net lease
• Percentage lease is based on the revenue intake of the retail store
• The land and building always belong to the landlord in land lease

Source: Saadiya Ahmad, Special to Properties
The writer is a freelancer


For Rent


View more properties

For Sale


View more properties