Tenant improvement works — also known as TI works or fit-out contributions — are one of the most important and least understood elements of any commercial lease negotiation in Dubai UAE. Specifically, tenant improvement works in Dubai UAE refer to the modifications made to a commercial space — an office, retail unit, restaurant, or healthcare facility — to make it suitable for the specific use and requirements of the incoming tenant. Understanding how TI works are structured, who is responsible for what, and how to negotiate a TI allowance that maximises the value of your lease is essential for any business planning a commercial move or renewal in the UAE. This guide covers everything you need to know, supported by our specialist commercial office fitout expertise in Dubai UAE.
What Do Tenant Improvement Works Cover in a UAE Commercial Lease?
Tenant improvement works in a UAE commercial lease typically cover any modification to the base building shell that is required to make the space functional and presentable for the specific tenant. Specifically, in an office lease context, TI works typically include: internal partition construction to create meeting rooms, private offices, and support spaces; false ceiling installation; MEP modifications and extensions to serve the new layout; raised access floor installation where required; office flooring (carpet, LVT, or tile); lighting installation; painting; and joinery works including reception counters, storage units, and breakout areas. Furthermore, in a retail lease context, TI works may include shopfront construction, internal partition works, MEP extensions, and base finishes — with the tenant typically responsible for all brand-specific fitout works above this base.
It is important to distinguish between what the landlord is responsible for — the base building shell — and what the tenant is responsible for — the fit-out above the base. Specifically, a standard UAE commercial lease in a multi-tenant office building will typically deliver the space as a shell — concrete slab floor, bare concrete or block walls, and a basic MEP stub-out — with the tenant responsible for all works above this shell specification. Consequently, the true cost of any commercial lease in Dubai UAE includes not just the annual rent but also the capital cost of the fitout works required to make the space operational. Real Express helps tenants across the UAE understand these costs accurately and execute their fitout efficiently. Our comprehensive commercial fitout service covers everything from initial space planning and cost estimation through authority permits and construction to final handover.
TI Allowances in Dubai UAE: How Landlords Contribute to Fitout Costs
A TI allowance — also called a fit-out contribution or capital contribution — is a sum provided by the landlord to the tenant to fund or partially fund the fitout works. Specifically, TI allowances are widely used in the Dubai UAE commercial property market as a tool for landlords to attract and retain tenants — particularly in a market with competing available spaces where the fitout cost represents a significant barrier to a tenant committing to a specific location. Furthermore, a TI allowance is typically calculated as a fixed sum per square foot of leased area — commonly ranging from AED 50 to AED 200 per square foot in the Dubai office market, and higher in some mall retail leases.
Negotiating the maximum possible TI allowance is one of the most valuable outcomes of any commercial lease negotiation in the UAE. Specifically, the strength of the TI allowance negotiation depends on: the competitiveness of the available space market at the time of lease; the creditworthiness and covenant strength of the tenant; the length of the lease term being committed to; and the landlord’s own cost of leaving the space vacant while seeking a new tenant. Real Express provides free space planning and fitout cost estimation services for tenants in lease negotiation — so you know precisely what TI allowance to negotiate for before you enter any landlord discussion. Contact us today for a free pre-lease fitout cost consultation.
Landlord Works vs Tenant Works: Who Does What in a UAE Commercial Fitout?
Clearly defining which works are the landlord’s responsibility and which are the tenant’s is one of the most important steps in any UAE commercial fitout project. Specifically, a well-drafted UAE commercial lease agreement will define the landlord’s works — typically including base building HVAC provision to the space, electrical supply to the distribution board, fire detection loop to the space boundary, and building common area works — and the tenant’s works — everything else required to make the space functional. Furthermore, in practice, the dividing line between landlord works and tenant works is frequently disputed, particularly in relation to HVAC distribution within the space, MEP penetrations through structural elements, and the condition of the base building shell at handover.
Real Express advises tenants at the lease negotiation stage on what should be required as landlord works — and inspects the base building shell at handover to identify any defects or shortfalls relative to the lease agreement before the tenant accepts the space. This pre-fitout survey is one of the most valuable steps in any UAE commercial fitout process — because defects identified before handover are the landlord’s responsibility to rectify; defects identified after handover become the tenant’s problem. Our comprehensive office fitout service and office renovation service both begin with this pre-fitout survey as standard.
Planning Your Fitout Timeline Around a UAE Commercial Lease
The fitout timeline is one of the most frequently underestimated elements of any commercial lease in Dubai UAE. Specifically, a standard commercial office fitout of 1,000 to 3,000 square metres in Dubai typically requires 8 to 14 weeks from receipt of the Dubai Municipality fitout permit to practical completion — and the permit application itself typically takes 3 to 6 weeks from appointment of the consultant. Consequently, from the date of lease signing, a tenant should typically allow 12 to 20 weeks before the space is ready for occupation and staff can move in. Furthermore, this timeline does not include furniture lead times — which can be 8 to 16 weeks for bespoke or imported furniture — meaning that furniture must be ordered on or before permit submission to avoid delaying occupation after practical completion. Real Express provides detailed programme plans for all fitout projects at the point of quotation — giving clients precise milestone dates from permit submission through practical completion, furniture installation, and handover. Contact Real Express today for a free space planning consultation and fitout timeline review for your UAE commercial lease.
How Real Express Supports UAE Tenants and Landlords Through the Fitout Process
Real Express works with both tenants and landlords on commercial fitout projects across Dubai UAE. For tenants, we provide pre-lease fitout cost estimation, space planning, permit management, and complete fitout delivery under fixed-price contracts. Specifically, our pre-lease consultation service — available at no cost — allows tenants to understand the true total cost of occupying a specific commercial space before they sign the lease, incorporating both the fitout cost and the negotiated TI allowance into a clear financial picture. Furthermore, for landlords, we deliver shell and core fitout works, building common area renovations, and base building upgrades that make spaces more marketable and attract higher-quality tenants. Additionally, our annual maintenance contract service ensures that completed fitouts are maintained to the highest standard throughout the lease term, protecting the landlord’s asset and the tenant’s operational environment. Contact Real Express today for a free commercial lease fitout consultation covering our full commercial office fitout and office renovation services in UAE.