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Renting a retail unit in a major shopping mall in Dubai is no ordinary matter. With the emirate’s globally-known position as a shopping hub, demand for high quality retail space is still strong. All these considerations — tourists, residents, high-spending consumers — play a role in a lively retail environment, creating Dubai as an appealing market for both new entrants and the established when it comes to expansion of the brand.
That can mean getting that space isn’t necessarily easy. Every mall has its own positioning, tenant profile, and approval cycle, which is, if you’re new to the world of malls, daunting. It is the reason many business owners seek out shopping mall leasing professionals in Dubai as they’re both market experts and may direct brands from enquiry-wise to negotiation to contract. It explains how the entire transaction works.
In this light, should you wish to lease retail premises at a mall in Dubai, the points below will give you an idea of what happens and a guide through each phase.
Dubai’s shopping malls are intended more than just shopping spots. They are social centers with a mix of retail, hospitality, entertainment and dining — a mix that tends to have a high foot traffic. This means that mall operators are very cognizant of the brands they bring in. They want to keep a good balance of nice products that retain the customers.
For retailers, this could translate to competitive shopping space at premium malls. It also means you need to make sure you’re positioned well – something that one of my local retail leasing specialists in Dubai or one in the UAE can provide.
Before entering any mall, you need to know what you actually need. This includes:
The approximate unit size.
The kind of mall that fits your brand.
Your target audience.
Fit-out expectations.
Budget and projected sales.
A clear brief helps leasing teams understand your business and quickly decide whether they can expect a good spot to work in. It also ensures that the units you are visiting are genuinely suited to your requirements instead of spending hours sifting through options that won’t serve you for a long time to come.
Mall-management teams need to know that whatever brand they bring in would be a good investment into what they already have on the retail front. Just as the audience will not be willing to pay for an image that differs, so as to be a part of that identity, you are required to submit a brand proposal.
This usually includes:
Background on your brand.
Product range and pricing.
Store design inspiration.
Customer experience details.
Sales expectations.
Any existing footprint in the area.
A prepared presentation can mean so much to the competition where you are working with very little space to spare. This proposal can be adapted if necessary, so that it builds on the assets of your brand (consultants can help refine this proposal).
When you have your proposal made, the next step is to approach the leasing departments of the malls of interest, or else even sit down with the shopping mall leasing experts based in Dubai.
Consultants typically are knowledgeable about upcoming vacancies, customer footfall rates and where particular categories perform best in a mall. With their insight, you can save time and avoid decisions that once look appealing but bring only an insignificant commercial profit.
When the mall wants your concept, they’ll organize a viewing. Consider the following steps to evaluate the potential space:
Visibility of the unit from the main walkways.
Its proximity to anchor stores.
Customer flow on average in the area.
Provision of accessibility and loading facilities.
Structural elements that would affect your design.
The location in a mall is extremely important for performance, however, don’t rush into the conclusion, instead take the time to go through the space.
If you have selected a unit in the same preference, the lease will be negotiated. The important information to cover is rent, service dues, contract duration, fit-out time and any revenue-sharing parts.
Furthermore, some malls mandate marketing contributions or have renewal procedures. This is where speaking with retail real property consultants in the UAE as to what is standard in the market as well as what can be really done at this stage will be particularly useful, as they have knowledge of what is standard and what realistically can be negotiated.
After the agreement is signed, you enter the fit-out phase. Dubai’s malls have strict design and safety conditions, so your contractor will have to work closely with the malls’ engineering and design people.
They are backed by a lengthy approval process yet they provide a uniform service quality throughout the mall. If properly prepared, the transfer from signing to opening can be a seamless and efficient process.
How long does it typically take to secure a retail space in a Dubai mall?
Most brands complete this process within a few weeks and although dates can vary, such timelines are often influenced by both availability and the mall’s approval procedures.
But do the malls in Dubai have a preference for new or smaller brands?
Yes, as long as the concept is strong and fills a gap in the mall’s current tenant mix.
Is it helpful to have a retail consultant?
You can approach malls directly, but consultants tend to speed it up and help get better terms.
What is the average lease term for Dubai malls?
Most leases last three to five years depending on the mall and the brand category.
