Commercial Space Advisory for Tenants

Structured representation for office, retail, medical, showroom, and industrial leasing.

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How the Process Works

A typical commercial leasing transaction in Riyadh follows six core stages.

1

Requirements Definition

Size, location, budget, lease duration, and operational needs are outlined in collaboration with the tenant.

2

Market Shortlisting

Available properties matching the criteria are identified across Riyadh's commercial districts.

3

Property Inspections

Physical walkthroughs assess layout, condition, access, parking, and technical infrastructure.

4

Lease Economics & Negotiation

Base rent, service charges, deposits, payment terms, and incentives are structured and negotiated.

5

Legal Documentation

Bilingual contracts are prepared, reviewed, and registered with relevant Saudi authorities.

6

Handover & Occupancy

Fit-out coordination, final inspections, and move-in logistics complete the transaction.

Defining Tenant Requirements

Successful leasing starts with clear specifications across seven dimensions.

Size

Total square meters, departmental allocation, expansion allowance, and density per employee.

Location

District preference (KAFD, Olaya, Al Sahafa), proximity to clients or suppliers, accessibility for staff.

Budget

Maximum annual rent, tolerance for service charges, upfront capital for fit-out and deposits.

Lease Term

Initial commitment period, renewal options, break clauses, and lease flexibility requirements.

Fit-Out

Shell and core vs. fitted space, electrical load, HVAC capacity, branded finishes.

Parking

Number of bays required, visitor parking, covered vs. open, electric vehicle charging.

Compliance

Industry-specific licensing (medical clinics, F&B outlets), civil defense approval, accessibility standards.

Market Shortlisting & Viewings

Riyadh's commercial market is segmented by district and building grade.

Key Commercial Districts

  • KAFD (King Abdullah Financial District): Financial and professional services hub with Grade A towers
  • Olaya District: Mixed-use commercial area with retail, offices, and hospitality
  • Al Sahafa: Media and corporate offices with established infrastructure
  • King Fahd Road: High-visibility corridor for retail and showrooms
  • Exit 10 (Northern Ring Road): Warehouse and logistics concentration

Building Classification

  • Grade A: New or fully refurbished, premium finishes, modern systems, structured parking
  • Grade B: Functional but dated, adequate systems, may require tenant improvements
  • Grade C: Older stock, basic infrastructure, lower rent but higher operational costs

What to Assess During Viewings

  • Floor plate efficiency (usable vs. gross area)
  • Column spacing and layout flexibility
  • Natural light and window lines
  • Elevator capacity and lobby quality
  • Loading bay access (for retail/industrial)
  • Surrounding amenities and transport links

Lease Economics in Saudi Arabia

Understanding the full cost structure of a commercial lease.

Base Rent

Annual rent per square meter. Varies significantly by district and building grade. Typically quoted in SAR per m² per year.

Service Charges

Common area maintenance, security, cleaning, and building management. Usually 10-15% of base rent.

Payment Cycles

Annual or semi-annual payments are standard. Monthly billing is rare in Saudi commercial leasing.

Security Deposits

Typically equivalent to 1-3 months of annual rent. Refundable at lease expiry subject to condition assessment.

Fit-Out Allowances

Landlords may contribute capital for tenant improvements. Negotiable based on lease length and tenant credit.

Hidden Costs

Utilities (HVAC, electricity, water), municipality fees, waste management, internet infrastructure.

Legal & Regulatory Basics

Commercial leasing in Saudi Arabia involves specific legal frameworks and documentation requirements.

Ejar & Lease Registration

Commercial leases in Saudi Arabia are registered through the Ejar platform. Lease terms, duration, and obligations are formalized digitally and linked to licensing and operational approvals.

Relevant Authorities

Commercial leasing approvals vary by use and location. Typical authorities include:

  • Ministry of Municipal and Rural Affairs: Building permits and commercial licensing
  • Saudi Civil Defense: Fire safety approvals and occupancy certificates
  • Ministry of Commerce: Commercial registration for operating entities
  • Ministry of Health: Additional approvals for medical and F&B spaces

Key Clauses Tenants Must Understand

  • Rent Structure: Commercial leases are commonly fixed for the initial lease term. Rent review mechanisms depend on contract structure, asset type, and negotiation.
  • Fit-Out Responsibility: Clarity on landlord vs tenant scope for base build, MEP, and reinstatement.
  • Early Termination: Break options, penalties, and notice periods.
  • Assignment & Subleasing: Conditions under which lease transfer or subletting is permitted.
  • Use & Licensing: Ensuring the permitted use aligns with regulatory approvals and future expansion.

Representative Assignments

Examples of commercial leasing work completed in Riyadh.

SAT Assignment
Office Leasing

Crayon International

Expansion-ready office secured for technology solutions provider in central business district.

Assignment Details

  • Sector: Technology
  • Location: Central business district
  • Space Type: Office with modern infrastructure
Outcome: Expansion-ready layout secured with flexible configuration options
SAT Assignment
Entertainment Venue

Ninja Entertainment Concept

3,000 sqm high-traffic entertainment venue secured in premier Riyadh mall.

Assignment Details

  • Size: 3,000 square meters
  • Location: Major mall in Riyadh
  • Tenant Origin: Dubai-based operator
Outcome: Strategic location secured in high-footfall destination retail environment
SAT Assignment
Office Leasing

Draeger

One-week turnaround: Office secured for global medical and safety device manufacturer.

Assignment Details

  • Timeline: One week from brief to lease
  • Sector: Medical devices and safety systems
  • Location: Accessible office district
Outcome: Accelerated process delivered operational-ready space within urgent timeline
SAT Assignment
Office Leasing

Doehler

500 sqm office secured for global food and beverage technology leader.

Assignment Details

  • Size: 500 square meters
  • Sector: Food & Beverage Technology
  • Location: Riyadh business district
Outcome: Modern facility secured with infrastructure supporting technical operations
SAT Assignment
Office Leasing

FTG Development

800 sqm corporate headquarters secured for real estate development company.

Assignment Details

  • Size: 800 square meters
  • Sector: Real Estate Development
  • Location: Riyadh business district
Outcome: Professional corporate space secured in prestigious business location
SAT Assignment
Medical/Clinical

Shift Clinics

800 sqm clinic facility secured for healthcare provider with licensing requirements.

Assignment Details

  • Size: 800 square meters
  • Sector: Healthcare Services
  • Location: Riyadh
Outcome: Compliant medical facility secured meeting Ministry of Health requirements
Disclosure & Clarification

SAT Real Estate is an independent Saudi commercial real estate advisory firm headquartered in Riyadh. We focus on tenant-side leasing advisory and support commercial leasing assignments across Saudi Arabia when required.

We are not affiliated with similarly named real estate firms outside Saudi Arabia.

Tenant Resources & Guides

Expert guides to help you navigate commercial leasing in Riyadh.

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