Before buying a tenanted office, check what comparable offices rent for, how much the owner actually receives and when the tenant can leave. Even a signed five-year lease tells you little about future income if the tenant can break it after three months.
What do comparable offices rent for?
Start with registered rents in the Rents section of the Dubai Land Department data portal. Look for offices in the same building or area with similar floor space, fit-out and parking. Compare annual rent per unit of area in the same currency. Record how many comparable leases you found.
Which lease terms and payments should you verify?
Ask for the signed lease, its addenda and evidence of rent received. Match the tenant’s legal name, unit number, payment dates and amounts. If the seller refers to Ejari registration, ask for the Ejari certificate. Check with the tenant whether they occupy the office and whether any discounts or rent-free periods apply.
Read the break clause. What is the earliest exit date, how much notice is required and what compensation is due? If the seller promises guaranteed income, ask where the lease says so. Resolve discrepancies before making an offer. A discrepancy alone does not establish fraud.
What happens to the yield if the tenant leaves?
Suppose the office costs AED 2 million and the lease states an annual rent of AED 260,000. That implies a 13% gross yield if the full rent is paid. If the tenant leaves after three months, the office stands empty for three months and the replacement tenant pays AED 80,000 for the remaining six months, first-year rent is AED 65,000 + AED 80,000 = AED 145,000. That is 7.25% of the purchase price before expenses. Deduct service charges, letting costs and other expenses to estimate the net return.
Before agreeing a price, ask for the lease and addenda, evidence of payment and the seller’s yield calculation. For help reviewing an office, contact Aleksandr Vinogradov.