When businesses compare warehouses, they usually compare the rent per square foot. But the rent is only one line in the budget. Two units with the same rent can cost very different amounts once you add everything else. Use this list to build a full first-year budget before you decide.
One-time costs when you move in
- Security deposit. Usually held by the landlord and returned at the end of the lease if the unit is handed back in good condition.
- Contract registration. Tenancy contracts in Sharjah are attested with Sharjah Municipality, and there are fees for this.
- Utility deposits. Opening electricity and water accounts with SEWA usually requires a deposit.
- Fit-out. Racking, office partitions, lighting upgrades, air conditioning for offices, signage and internet.
- Approvals. Some fit-out work needs civil defence or municipality approval, which can involve fees and time.
- Moving. Transport, labour and the days your team spends setting up instead of working.
Recurring costs
- Rent. Confirm the basis, usually per square foot per year, and the payment schedule.
- VAT. Commercial rent in the UAE is subject to 5 percent VAT. Check whether a quoted price includes it.
- Service charges. Some properties charge for common area maintenance, security or cleaning. Ask if they apply.
- Electricity and water. Your consumption depends on your equipment, lighting and cooling. Power-heavy operations should estimate this carefully.
- Maintenance. Confirm in writing which repairs are yours and which are the landlord's.
- Insurance. Cover for your stock, equipment and liability to others.
- Licence renewal. Your trade licence renewal may need the attested tenancy contract.
Hidden costs of the wrong unit
Some of the biggest costs never appear on an invoice:
- Too little power can mean expensive upgrades or equipment you cannot run.
- Too little height means more floor area, and more rent, for the same stock.
- Poor truck access adds waiting time and handling on every delivery.
- No room to grow can force a second move within a couple of years.
A simple way to compare
For each unit, add the first-year total of all one-time and recurring costs, then divide by the number of pallet positions or the usable floor area you will really get. That number tells you far more than rent per square foot alone.
At Al Maha we will give you a clear breakdown of what is included with each unit, so you can compare like for like. Contact us for a quote and a site visit.