Commercial tenancy contracts in Dubai use the same DLD Unified Tenancy Contract format as residential — but the rules around them differ. Higher deposits, longer terms, more negotiable additional clauses, different rent-increase rules. This guide covers what's different and how to create one correctly.
Same Form, Different Rules
Both residential and commercial tenancies in Dubai use the DLD Unified Tenancy Contract — there is no separate 'commercial form' in 2026. The Property Usage field is set to 'Commercial' instead of 'Residential', and the Additional Terms section carries most of the commercial-specific clauses.
Key Differences vs Residential
- Security deposit: typically 10% of annual rent (vs 5%/10% for residential), often negotiable up to 3 months rent for retail
- Contract term: 2-5 years common (vs 1 year residential)
- Rent increases: governed by RERA Index but commercial increases often pre-negotiated in the contract
- Notice periods: longer (often 12 months) given investment in fit-out
- Fit-out clauses: extensive Additional Terms covering tenant alterations, removal at end of term, restoration
- Subletting / assignment: usually prohibited without written consent
- Force majeure: critical clause for commercial tenants
Setting the Annual Rent for Commercial
Commercial rents are quoted differently — usually per square foot per year (AED/sqft/yr). For Dubai office space:
- Grade A office (Downtown / DIFC / Business Bay): AED 130-220/sqft/yr
- Grade B office (JLT / Internet City): AED 80-130/sqft/yr
- Suburban office (Tecom / Barsha Heights): AED 60-100/sqft/yr
- Retail (mall / high street): AED 200-800+/sqft/yr depending on location
- Warehouse (DIP / JAFZA / DIC): AED 30-60/sqft/yr
Commercial-Specific Additional Terms
The 8 Additional Terms slots fill quickly for commercial. Recommended clauses:
- Permitted use (e.g. 'office only' or 'retail F&B with no late-night licence')
- Tenant fit-out approval and timeline (e.g. landlord must approve fit-out drawings within 14 days)
- Restoration at end of term (return to shell condition vs leave fit-out)
- Service charge / common area maintenance allocation
- Signage rights (exterior, interior, building directory)
- Operating hours and access (24/7 vs business hours)
- Subletting / assignment requirements (typically requires written consent)
- Rent escalation formula for multi-year contracts
Ejari for Commercial Tenancies
Commercial tenancies must register with Ejari just like residential. The fee is the same (AED 220), but commercial registrations require a trade licence copy in addition to the standard documents.
For the standard creation flow, see our step-by-step guide to creating a Dubai tenancy contract. The same flow works for commercial — just set Property Usage to 'Commercial'.
Common Commercial Tenancy Pitfalls
- Signing without a defined permitted-use clause — limits future flexibility
- Accepting deposit deductions without receipts
- Not specifying restoration responsibility at end of term (huge surprise costs)
- Verbal-only agreements on signage, parking, or after-hours access
- Missing a force-majeure clause (post-pandemic this is essential)
- Subletting without written landlord consent (grounds for eviction)