Offer To Lease Commercial Property for United Arab Emirates

Offer To Lease Commercial Property Template for United Arab Emirates

An Offer to Lease Commercial Property is a formal document used in the United Arab Emirates that outlines the preliminary terms and conditions under which a prospective tenant proposes to lease a commercial property from a landlord. This document serves as the foundation for the subsequent lease agreement and must comply with UAE federal laws and specific emirate-level regulations, particularly in Dubai and Abu Dhabi. It includes essential terms such as rent, duration, permitted use, and conditions precedent, while incorporating local commercial property requirements and RERA guidelines where applicable.

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What is a Offer To Lease Commercial Property?

The Offer To Lease Commercial Property is a crucial preliminary document in the UAE commercial property leasing process, typically used when a business has identified suitable premises and wishes to formally propose leasing terms to the property owner. This document is particularly important in the UAE's dynamic commercial real estate market, where it helps establish clear intentions and basic terms before proceeding to a full lease agreement. It must comply with UAE federal laws, including Federal Law No. 5 of 1985 (Civil Code) and relevant emirate-specific regulations such as Dubai Law No. 26 of 2007 for landlord-tenant relationships. The document typically includes proposed commercial terms, conditions precedent, and key obligations, serving as a framework for negotiations and subsequent legal documentation.

What sections should be included in a Offer To Lease Commercial Property?

1. Parties: Details of the prospective landlord and tenant, including full legal names, registration numbers, and addresses

2. Background: Brief context of the offer, including property overview and intention to enter into a lease

3. Definitions: Key terms used throughout the document, including Property, Commencement Date, Term, and Permitted Use

4. Property Details: Specific description of the property, including address, size, and any included facilities or parking

5. Commercial Terms: Key financial terms including rent amount, payment frequency, security deposit, and advance payments

6. Lease Term: Proposed duration of the lease, including commencement date and any option to renew

7. Use of Property: Permitted use of the premises and any restrictions

8. Condition Precedents: Conditions that must be met before the lease can commence

9. Offer Validity: Period for which the offer remains valid and process for acceptance

10. Basic Obligations: Overview of fundamental responsibilities of both parties

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Offer To Lease Commercial Property?

1. Fit-out Works: Details of any tenant improvements or modifications, used when the property requires customization

2. Service Charges: Breakdown of additional charges for building services, relevant for properties in managed buildings

3. Utilities: Arrangements for utility connections and payments, if not included in main rent

4. Guarantees: Requirements for corporate or personal guarantees, used for higher-risk tenants

5. Break Clause: Early termination provisions, included when either party requires flexibility

6. VAT Treatment: Specific VAT arrangements, required for VAT-registered entities

7. Registration Requirements: Specific registration obligations, particularly relevant in Dubai/Abu Dhabi

8. Green Building Requirements: Environmental compliance requirements, relevant for certified green buildings

What schedules should be included in a Offer To Lease Commercial Property?

1. Floor Plan: Detailed plan showing the premises boundaries and common areas

2. Commercial Terms Schedule: Detailed breakdown of all financial terms including rent, deposits, and payment schedules

3. Property Specification: Detailed description of property features, facilities, and condition

4. Service Charge Budget: Estimated annual service charges and breakdown of included services

5. Fit-out Guidelines: Building regulations and requirements for any tenant improvements

6. Form of Bank Guarantee: Template for required bank guarantee if applicable

7. Building Rules and Regulations: Operational guidelines and restrictions for the building

8. Handover Condition Report: Template for documenting property condition at handover

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Commercial Real Estate

Retail

Hospitality

Financial Services

Professional Services

Technology

Healthcare

Manufacturing

Logistics

Education

Media and Entertainment

Consulting

Trading

Relevant Teams

Legal

Real Estate

Facilities Management

Finance

Operations

Procurement

Business Development

Corporate Services

Risk Management

Compliance

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Commercial Director

Chief Financial Officer

Operations Manager

Business Development Manager

Procurement Manager

Regional Director

Country Manager

Expansion Manager

Corporate Services Manager

Real Estate Broker

Leasing Manager

Asset Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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