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 v1.4 — 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 generating 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 a deposit clawback that exceeds the 10% legal cap
- 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)