Proposal To Lease Commercial Space for United Arab Emirates

Proposal To Lease Commercial Space Template for United Arab Emirates

A comprehensive commercial lease proposal document tailored for the United Arab Emirates market, complying with UAE Civil Code and relevant emirate-specific property laws. This document outlines the proposed terms and conditions for leasing commercial space, including rental rates, tenure, permitted use, and essential commercial terms. It serves as a formal offer from the landlord to the prospective tenant, incorporating UAE-specific requirements such as RERA regulations and local municipality requirements, while addressing key aspects of commercial tenancy relationships under UAE law.

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What is a Proposal To Lease Commercial Space?

The Proposal To Lease Commercial Space is a crucial preliminary document in UAE commercial real estate transactions, typically used when a property owner or their representative wishes to formally offer commercial space to a prospective tenant. It serves as a precursor to the final lease agreement, outlining key commercial and legal terms in accordance with UAE Federal Laws and emirate-specific regulations. This document is particularly important in the UAE market where commercial leasing practices must align with specific legal requirements, including those set by RERA in Dubai or similar authorities in other emirates. The proposal includes essential elements such as property details, commercial terms, tenure, and conditions, forming the basis for subsequent lease negotiations and documentation. It's designed to protect both parties' interests while ensuring compliance with local commercial property regulations and licensing requirements.

What sections should be included in a Proposal To Lease Commercial Space?

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

2. Background: Brief context of the proposal, including the property's location and intended use

3. Definitions: Key terms used throughout the proposal, ensuring clarity and avoiding ambiguity

4. Property Details: Comprehensive description of the commercial space, including exact location, floor, unit number, and total area

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

6. Lease Term: Proposed duration of the lease, including proposed commencement date and any renewal options

7. Permitted Use: Specific permitted business activities and any restrictions on use of the premises

8. Maintenance and Services: Outline of building services provided and maintenance responsibilities of each party

9. Utility Charges: Responsibility for utilities, including DEWA charges, chiller charges, and other relevant utilities

10. Insurance Requirements: Required insurance coverage to be maintained by the tenant

11. Proposal Validity: Period for which the proposal remains valid and binding

12. Next Steps: Process for accepting the proposal and moving forward with the formal lease agreement

What sections are optional to include in a Proposal To Lease Commercial Space?

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

2. Rent-Free Period: Terms of any rent-free or reduced rent period, included when offering such incentives

3. Break Option: Details of any early termination rights, included when offering flexibility to either party

4. Service Charges: Breakdown of service charges if applicable to the building or development

5. Parking Allocation: Details of available parking spaces and terms, included for properties with parking facilities

6. Signage Rights: Terms for external or internal signage, relevant for retail or prominent commercial spaces

7. Operating Hours: Specific details about permitted operating hours, relevant for retail or specific use properties

8. Green Building Requirements: Specific environmental or sustainability requirements, included for green-certified buildings

What schedules should be included in a Proposal To Lease Commercial Space?

1. Floor Plan: Detailed plan showing the exact location and layout of the proposed space

2. Commercial Terms Summary: Tabulated summary of all key commercial terms for quick reference

3. Specification Schedule: Detailed description of the property's technical specifications and facilities

4. Service Charge Budget: Estimated annual service charge breakdown if applicable

5. Building Rules and Regulations: Standard building rules and regulations that will apply to the tenancy

6. Fit-out Guidelines: Technical guidelines for any permitted tenant improvements

7. Handover Condition Report: Description or photos of the current condition of the premises

8. Required Documents List: List of documents required from the tenant for lease completion

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

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Retail

Professional Services

Hospitality

Healthcare

Financial Services

Technology

Education

Manufacturing

Logistics

Entertainment

Food & Beverage

Media & Communications

Relevant Teams

Real Estate

Legal

Finance

Operations

Facilities Management

Business Development

Compliance

Property Management

Corporate Services

Asset Management

Relevant Roles

Real Estate Manager

Property Manager

Commercial Director

Facilities Manager

Legal Counsel

Business Development Manager

Operations Director

Chief Financial Officer

Real Estate Broker

Leasing Manager

Asset Manager

Property Consultant

Corporate Services Manager

Expansion Manager

Real Estate Director

Compliance Officer

Industries
UAE Civil Code (Federal Law No. 5 of 1985): Provides the fundamental legal framework for contracts and property rights, including general principles of lease agreements and obligations of landlords and tenants
UAE Commercial Transactions Law (Federal Law No. 18 of 1993): Governs commercial transactions and business relationships, including provisions relevant to commercial lease agreements
Dubai Law No. 26 of 2007 (as amended): Regulates the relationship between landlords and tenants in Dubai, including provisions specific to commercial properties
Abu Dhabi Law No. 20 of 2006: Regulates the leasing of properties in Abu Dhabi, including commercial spaces
Dubai Local Order No. 2 of 2003: Concerning classification of properties in Dubai and requirements for different types of commercial spaces
RERA (Real Estate Regulatory Agency) Regulations: Provides specific guidelines for real estate transactions and lease agreements in Dubai, including registration requirements
UAE Federal Decree-Law No. 8 of 2017 on Value Added Tax: Governs VAT implications on commercial lease agreements and related services
UAE Economic Substance Regulations: Impacts commercial lease arrangements for businesses that need to demonstrate economic substance in the UAE
Municipality Health and Safety Regulations: Stipulates safety requirements and permitted uses for commercial spaces in different emirates
UAE Commercial Licensing Regulations: Defines requirements for business activities that can be conducted in leased commercial spaces
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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