How to rent a warehouse or comercial property in Bahrain?
This blog post explains the Bahrain lease agreement and guides you on how to choose the right commercial or industrial property for rent in Bahrain. We will also cover the legally binding nature of the lease agreement.
Bahrain has many types of industrial properties, commercial properties, and storage spaces available. To start, you must clearly define your needs. Ask yourself these key questions:
What is the exact use for the space?
How many square meters do you require?
Which location is most suitable for your business operations?
What is the monthly rent per square meter?
Does the property have the necessary approvals from the relevant Ministry?
Before continuing, we recommend you view a few properties for rent and sale in Bahrain. For a better view, please open the following link on your computer: https://www.samsproperties.com/featured-properties/
Generally, industrial properties in Bahrain are classified based on their intended use: storage, industrial workshop, light industry, or heavy industry.
Furthermore, there are specific sub-classifications, especially for handling materials like food, general materials, and chemicals. This means you need dedicated spaces: one type for food processing/storage, another for general material processing/storage, and yet another for chemical processing/storage.
Crucially, the Ministry designates special, separate locations for handling hazardous chemicals and heavy industry. Therefore, when leasing a warehouse or any industrial space, you must ensure your use complies with all relevant government guidelines and zoning regulations.
When renting a property, you must check the power load and availability. Not all warehouses have the right power setup for heavy use.
For simple needs, like running a couple of Air Conditioning units (ACs) inside a shed, you will usually need three-phase power.
Industrial workshops, processing units, and factories generally require a much higher power load. Common load specifications include 10 kW, 25 kW, 50 kW, 100 kW, 500 kW or even more.
Be aware that upgrading the existing power supply is often difficult. In many locations, increasing the current power load might even be impossible. Even when possible, upgrading the power infrastructure is typically expensive and time-consuming. It’s usually better to find a property that already meets your required power specifications from the start.
The lease agreement for an industrial or commercial property in Bahrain must be executed on stamped paper.
You can purchase both ready-made (pre-printed with columns to fill in) and blank lease agreement forms in the market.
It is generally recommended to seek professional advice when filling out or drafting a lease, as standardised forms may not cover all your specific legal requirements.
A typical lease agreement has two key factors regarding its duration:
Fixed Lease Period (Initial Term): This is the set period (e.g., one or two years) during which the contract is binding.
Liability: If the tenant vacates the property before the fixed lease period ends, the tenant is usually liable to pay the rent for the remaining months of that fixed period.
Variable Lease Period (Renewal/Notice Period): This applies after the initial fixed term expires.
Termination Notice: Almost every lease agreement will specify a termination notice period (e.g., 1-3 months) that must be given by either party if they wish to end the lease after the fixed term is over..
A standard lease agreement in Bahrain is often set for two years, but it may feature a one-year fixed term component.
Fixed Term Penalty: Remember, if you end the lease during the initial fixed term, you will likely be required to pay the rent for the remaining months.
Before you sign the agreement, you must complete these verification steps to protect your business:
Verify Property Usage (Address Card): Ask the landlord for the official Address Card for the property. This card clearly states the building’s approved usage. You must cross-check this usage with your Commercial Registration (CR) activities to ensure the warehouse can be officially approved for your business.
Check Civil Defence Approval: Make sure the warehouse has current fire safety certifications and is accepted by the Civil Defence Force (CDF).
Alterations and Engineering: If you plan to make any major structural changes inside the warehouse, you will need special approval from the CDF. This often requires the service of an engineering consultant, a service which we are pleased to offer our customers.
⚠️ Warning: Once the lease agreement is signed and the rent is paid, most landlords will not issue a refund if you later find an issue. Therefore, following all the steps above before signing is essential to save your business time and money.
We wish you a smooth business time in Bahrain!
Finally, if you found this content helpful for your property search, please consider leaving us a review on Google:
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For any further help with your property search or to find the right commercial or industrial property in Bahrain, please contact us using the details below.
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