Temporary Office Space on Rentals

by Frank Penn Commercial Real Estate Columnist Due to credit crunch and overall deterioration in the overall economic and business environment of almost all the countries of the world, this state of UAE has also been greatly affected. The result of this effect is that the companies now have the ideology of adopting austerity measures. They focus heavily in taking offensive and defensive tactics to curb and control the costs. One such way of controlling the rising costs of property is to have it on long term basis under an agreement of rent.

One may argue that the premises of the company must be owned in order to show more ownership and increased assets under the head non current assets of the balance sheet of the company. This argument does hold good unless you go in the details and such details may vary in each company’s case. The property prices hike in recent years have let the newly established companies to concentrate their business more accurately if they can save the large amount of capital unnecessarily wasted on acquiring or getting or in purchasing highly expensive property items. Instead they can deploy such great amount of capital in other resources of the company especially in those resources that are considered to be core ones. Getting a property on rent for establishing an office is a simple and inexpensive option and a practical solution for newly established companies or the companies who are conducting business on a small scale.

Rent Office in Dubai should be taken by companies on a long term basis. The length of the period for obtaining the preemies should be at least over five years. This is because companies cannot justify the regular shifting of their offices in case the long term rent agreement is not renewed. Further, one aspect that should be taken in consideration before taking a decision in respect of getting a property for the purpose of establishing an office is the interior modifications being made to the property for the purpose of making it conducive for carrying out operations. This means that the house acquired on rentals must artistically be broken down into several departments. A company normally requires a waiting area and other space for accommodating the reception personnel and for this purpose the location should be the place of entrance.

Office Space in Dubai is offered to companies that have not in their ownership, a piece of land.  In this regard, companies who are interested in taking the possession should be correctly and carefully analyzed. The owner of the property who has intention to let out his or her property must not solely be interested in getting the high amount of rent. Other consideration shall be considered besides evaluating on the basis of renting out on maximum amount of rentals. The owner must be satisfied as to the nature of the operations of the business who are interested in getting the premises to conduct the operations. Sometimes there are companies who are involved in the illegal activities, try to find temporary locations for the conduct of their business, as they can easily move in case any tip off is made to reveal the reality of their business. Such businesses might include those companies who have had a bad track record of the conduct of their business and have been involved in illegal activities including money laundering.

About The Author:

Frank Penn is a noted real estate columnist and blog with specializing in international commercial real estate transactions. He has been associated with Core for the past 2 years and is considered an authority in Middle Easter property solutions.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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