Renting commercial property in Sharjah involves navigating a dynamic and competitive market. Understanding the local market trends and adhering to regulations is crucial for securing a suitable space that aligns with your business needs.
Knowing these steps and tips can help you make informed decisions, ensuring a smooth and successful rental process.
- Your Quick Guide to Renting Commercial Property in Sharjah
- Factors to Consider When Renting Commercial Property in Sharjah
- Legal and Documentation Requirements When Renting Commercial Properties in Sharjah
- Frequently Asked Questions
Your Quick Guide to Renting Commercial Property in Sharjah
Renting a commercial property in Sharjah entails navigating a multifaceted and intricate process comprising several pivotal steps. Here’s what you need to do:
Step 1: Hire a Real Estate Agent
The right real estate agent can make it infinitely easier for you to find and secure a suitable rental property. Make sure you choose one with demonstrable market knowledge and expertise. For instance, a SuperAgent provides valuable insights and top property listings for commercial space seekers.
Moreover, your real estate agent in Sharjah should have access to a broad range of listings. Note that you can leave all negotiations and paperwork to them. They have the manpower and experience to secure favourable terms and complete the documentation quickly.
Step 2: Determine Your Requirements
Start by defining what you need in terms of size, location, budget, and type of commercial property. Businesses vary as a retail shop needs high foot traffic, while an office may prioritise a quiet area with ample parking.
Once you have determined the type of property you need for your business, you can work with a real estate agent to find it.
Step 3: Inspect the Property
Once you or your agent have shortlisted suitable rental properties in Sharjah, it’s time to make sure that you pick the right one. Physically inspect the properties and their surroundings to assess their condition and layout.
It may also be a good idea to consider who the landlords are and whether they have been truthful in their descriptions of their properties.
Step 4: Negotiate
Once you find a suitable property, negotiate the terms with the landlord or property representative. Discuss rental price, lease term, payment methods, and any necessary property modifications.
While negotiating the lease, consider requesting rent-free periods to ease initial financial pressure. This should also help you secure renewal options for future flexibility and clarify maintenance responsibilities to avoid unexpected costs.
Step 5: Sign the Lease Agreement
After agreeing on the terms, proceed to sign the lease agreement. Carefully read the agreement to ensure it covers essential details like rental amount, payment terms, lease period, responsibilities of both parties, and penalties. Then, you will move to the attestation process of the commercial property.
Step 6: Register the Commercial Lease
When renting commercial property in Sharjah, you can get the attestation of your tenancy contract from the Sharjah Municipality. Here are the requirements and fees for attestation of the commercial rental agreement:
Document Requirements
- Title deed
- Landlord’s ID or passport
- Trade name
- Passport of the local owner
- Copy of commercial land or property plans
- The economic department’s stamp and signature of approval on the contract
- SEWA’s stamp of approval (for new contracts)
- SEWA’s customer number
- Power of attorney (If required)
Attestation Fees
The commercial tenancy contract attestation fee includes the following:
- AED 100 for tenancy agreement
- 5% of the annual rent value (minimum of AED 500)
Factors to Consider When Renting Commercial Property in Sharjah
Before you put your money down on a commercial property in Sharjah, it is important to figure out how to select the right one. Make sure you look at the following facets of a property:
Location
The right location is crucial to rent a commercial property in Sharjah. Consider areas like the Industrial Area, Al Sajaa Industrial, Al Majaz, Muwailih Commercial, Al Nahda, Al Sajaa, Al Khan, and Muwaileh.
Retail businesses thrive in high-foot-traffic zones like Al Majaz, while industrial operations are better suited for places like Al Sajaa Industrial or the Industrial Area.
Size and Layout
Determine the perfect size and layout by assessing your business needs. Think about the number of employees, equipment space, and room for growth. The layout should boost productivity and streamline operations.
Budget
Spend wisely – you must consider rent, utilities, maintenance, and possible renovations. Keeping these costs within your financial plan ensures business stability.
Amenities
Look for essential amenities like parking, security, and accessibility for employees and clients. Good amenities can enhance your space’s functionality and overall appeal, contributing to business success.
Legal and Documentation Requirements When Renting Commercial Properties in Sharjah
Renting commercial properties in Sharjah requires navigating legalities and documentation. This guide to renting commercial property in Sharjah will help you figure out how to navigate this intricate process without any legal troubles.
Here’s what you need to know:
1. Understand the Purpose of Commercial Real Estate
In recent years, the Sharjah government has rolled out a series of initiatives to boost the real estate market and lure foreign investment. One major initiative is the relaxation of foreign ownership restrictions in certain free zones and sectors.
However, commercial real estate usage continues to be strictly regulated. Each property type has specific usage permissions, whether it’s an office, warehouse, or retail space. For example, a warehouse cannot be repurposed as office space. Ensuring the property aligns with your business needs and legal permissions is paramount to compliance.
2. Familiarise Yourself with Lease Agreements
Lease agreements for commercial properties in Sharjah detail the terms and conditions between tenants and landlords. These include the property address, rental rate, lease duration, and start date. They also specify permissible property uses, modifications, and maintenance duties.
Providing accurate business details is essential to avoid future disputes. Stating agreed terms like rent-free periods or renewal options ensures transparency and mutual understanding.
The new leasing law in Sharjah introduces detailed rules to regulate interactions between landlords and tenants, emphasising the rights and responsibilities of both parties to prevent disputes and foster a fair, harmonious environment.
3. Acquire the Necessary Licences
Operating a business in Sharjah requires various licences and permits. The key document is the trade licence, proving business ownership and legality. Depending on your business, you might need additional permits.
For instance, if you plan to modify the property, such as installing cubicles, these changes must be included in the property lease contract and approved by authorities. Securing all necessary licences before commencing operations is critical to avoid legal challenges.
4. Ensure Legal Compliance
Legal compliance in Sharjah involves adhering to regulations related to zoning, health, and safety. Properties must conform to specific zoning laws that dictate their permissible uses; for example, a warehouse cannot be used as office space.
The property must also meet all health and safety standards set by local authorities, including structural integrity and fire safety measures. Compliance ensures the safety and well-being of employees and customers.
Frequently Asked Questions
Article 13 of the Sharjah Tenancy Law states that landlords can’t increase rent until 3 years after the initial contract signing. However, there is no defined limit or cap on the amount they can increase. After that, rent increases can be done every two years.
Documents include a trade licence, passport copies of the business owners and managers, Emirates ID, and a power of attorney if applicable. Additional permits may be required depending on the nature of your business.
Yes, but any modifications, such as installing cubicles or making structural changes, must be specified in the lease contract and approved by the relevant authorities.
Lease agreements include the property address, rental rate, lease duration, permissible uses of the property, terms for modifications, maintenance responsibilities, and any agreed-upon incentives like rent-free periods.
Properties must adhere to zoning laws, health, and safety standards, including structural integrity and fire safety measures. Compliance ensures the safety of employees and customers.
In summary, Sharjah’s commercial property rental market is marked by stability, growing interest in off-plan developments, and attractive rental yields. Most commercial property renters also look for free zones in Dubai.
You can find the guide to renting commercial properties in Dubai. Furthermore, Dubai’s economic zones have a set of rules and regulations that you must follow.
