Renting Out Office Space in Dhaka: A Landlord's Guide

Many property owners in Dhaka have a floor, or a whole building, that could earn more as office space than as flats. Companies, NGOs, IT firms, clinics, training centres and small startups are constantly looking for workable offices close to their clients and staff. But renting out office space in Dhaka is a different business from renting a family flat. Tenants expect power backup, lifts, parking, internet options and clear service charges; leases are longer and more detailed; and corporate tenants deduct tax at source and pay by bank.

This landlord's guide explains how to prepare your space, decide on the rent and service charge, find and screen office tenants, write the lease, handle tax and compliance questions, and manage the property day to day so that good tenants stay for years.

Is Your Property Suitable for Office Use?

Before you advertise, be honest about whether your building suits offices. Check three things first.

1. Permitted use and approvals

Buildings in Dhaka are approved by RAJUK (or the relevant development authority outside Dhaka) for specific uses. A building approved as residential may not be permitted for commercial office use, and some areas have land-use restrictions. Changing use without permission can create problems with authorities, utility connections, trade licences and even insurance. Check your approved plan and, if you are unsure, consult an architect or lawyer familiar with RAJUK rules before converting residential floors into offices.

2. Safety

Offices bring many more people into a building every day than families do. Fire exits, fire extinguishers, fire-rated doors where required, emergency lighting, safe electrical wiring and a structurally sound building matter a great deal. Serious corporate tenants, especially international organisations and banks, may ask for fire safety documents or run their own inspection.

3. Infrastructure

• Electrical load: offices run air-conditioners, computers and servers. Check your sanctioned load with DESCO or DPDC and whether the transformer and wiring can handle it.
• Power backup: a generator for lifts, common areas and ideally tenant floors is almost expected.
• Lifts: buildings above a few storeys need reliable lifts with a maintenance contract.
• Internet: access for several ISPs and a route for fibre cabling.
• Washrooms and pantry: enough toilets for the expected number of staff, and water supply for a pantry.
• Parking: one of the biggest deciding factors for office tenants in Dhaka.

Types of Office Space You Can Offer

Most individual landlords in Dhaka do well with semi-furnished space: clean floors, false ceiling, good lighting, AC points and washrooms, leaving partitions and furniture to the tenant.

How to Set Office Rent and Service Charge

Office rent in Dhaka is commonly quoted per square foot per month, while service charge covers shared costs. Rent levels vary widely by area, road, building quality, floor, parking and backup power, so there is no reliable single figure. Research by:

• Calling on To-Let signs for offices in similar buildings nearby.
• Checking listing sites and commercial property agents.
• Asking existing tenants and building managers in the area.

Clarify how area is measured

Disputes often arise over whether the rent is on the net usable area or the gross area including a share of stairs, lift lobby and common toilets. State clearly in the lease which area is used and how it was measured.

Calculating a fair service charge

The service charge should reflect real costs: guards, cleaners, lift maintenance, generator fuel and maintenance, common electricity, water pumps, and a reasonable management component. Divide by floor area or agree a fixed amount reviewed yearly. Our guide to service charge in commercial buildings explains how to calculate and share it fairly.

For example (illustrative): A building has 4 office floors of 2,500 sq ft each (10,000 sq ft total). Monthly common costs are: guards Tk 60,000, cleaners Tk 30,000, lift maintenance Tk 10,000, generator fuel and service Tk 50,000, common electricity and water pump Tk 25,000, and a management allowance of Tk 15,000.

• Total = 60,000 + 30,000 + 10,000 + 50,000 + 25,000 + 15,000 = Tk 190,000 per month
• Service charge per sq ft = 190,000 / 10,000 = Tk 19 per sq ft
• A tenant on one 2,500 sq ft floor pays 2,500 x 19 = Tk 47,500 per month in service charge

If the same floor's rent is, say, Tk 70 per sq ft (illustrative), the base rent is 2,500 x 70 = Tk 175,000, and the tenant's total occupancy cost before their own electricity is Tk 175,000 + 47,500 = Tk 222,500 per month.

Preparing the Space for Letting

1. Deep clean and repair: fix leaks, damp, broken tiles and faulty switches.
2. Paint in neutral colours: white or light grey suits every business.
3. Lighting: bright, energy-efficient LED lighting makes a floor look larger and more professional.
4. Separate metering: give each floor or suite its own meter or sub-meter so electricity can be billed accurately.
5. Entrance and lobby: first impressions matter. A clean lobby, a working intercom, a building directory and a guard at the gate signal a well-run building.
6. Documents ready: ownership papers, approved plan, holding tax receipts and utility bills, since corporate tenants may request copies.

Finding the Right Office Tenant

• Commercial agents: they have lists of companies looking for space; agree the commission in writing.
• Online listings: good photos, floor size, parking, backup power and service charge details attract serious enquiries.
• To-Let banner: a large, clear banner with floor size and a phone number still works on busy roads.
• Your network: business contacts, chambers of commerce, associations.

What a good office listing includes

Office tenants compare many options quickly, so give them the facts they filter on. A strong listing states the floor size, the floor number, lift availability, generator backup (full or partial), parking spaces included, the rent per square foot and the service charge, the condition (bare, semi-furnished or furnished), and the earliest available date. Clear photos of the empty floor in daylight, the lobby, the washrooms and the building front help far more than a long description.

Sample listing (illustrative): "Office space for rent: 2,500 sq ft on 4th floor, semi-furnished with false ceiling, LED lights and AC points. 2 lifts, full generator backup, 2 car parks included. Rent and service charge quoted per sq ft, details on request. Available from 1 July. Suitable for corporate office, NGO or IT company. Call the building manager to arrange a visit."

Screening office tenants

For companies, ask for the trade licence, certificate of incorporation (for limited companies), TIN and, where relevant, BIN. Find out what the business actually does, how many staff will sit there and what hours they work. For NGOs, check registration. A call-centre running 24 hours has very different impacts from a small consultancy working 9 to 5. For companies renting flats or guest houses for staff, see our guide to renting to corporate tenants.

The Office Lease Agreement

Office leases are typically longer, commonly three to five years or more, and more detailed than flat agreements. Key terms include:

1. Parties: the landlord and the company (signed by an authorised person with a board resolution or authority letter for companies).
2. Premises: floor, area and how it was measured, parking spaces allocated.
3. Term, commencement date and any rent-free fit-out period.
4. Rent, service charge, payment dates and bank details.
5. Rent escalation or review (for example a percentage every one, two or three years).
6. Security deposit and advance, and how they are adjusted or returned.
7. Permitted use and operating hours.
8. Fit-out and alterations: approval process, who owns improvements, reinstatement at exit.
9. Maintenance: what the landlord maintains (structure, lifts, common areas) and what the tenant maintains (interior, their AC units).
10. Utilities and generator usage.
11. Signage rules.
12. Lock-in period, termination, notice period and renewal options.
13. Tax deduction at source and VAT treatment, as applicable.

Longer leases may require stamp duty and registration under the Stamp Act 1899 and the Registration Act 1908. See our detailed guide to the commercial lease agreement in Bangladesh, and have your lawyer review the final draft.

Tax, VAT and Withholding: What Landlords Should Know

This is general information only. Rental income is taxable under the Income Tax Act 2023. When companies and certain other organisations pay rent, they are often required to deduct tax at source and deposit it with the government, giving you a certificate that you can use when filing your return. In some cases VAT may also apply to rent of commercial space under the VAT and Supplementary Duty Act 2012, with rules on who collects or deducts it. Rates and rules are updated through finance acts and NBR orders, so confirm the current position with a tax adviser. Our guide to withholding tax on rent in Bangladesh covers the practical side.

Tip: Ask every corporate tenant to send you the tax deduction certificate and payment advice each month or quarter. Missing certificates are one of the most common headaches at tax return time.

Managing an Office Building Day to Day

• Security: visitor logbook or visitor records, ID checks outside office hours, CCTV in common areas.
• Generator schedule: fuel stock, servicing, and a clear rule on which loads are covered.
• Lift maintenance: a service contract and a logbook.
• Cleaning: common areas, stairs and washrooms cleaned on a schedule.
• Parking management: assigned spaces, visitor parking rules.
• Maintenance requests: a simple system for tenants to report problems and for you to track them to completion.
• Invoicing: monthly invoices for rent, service charge and electricity, with receipts, sent on the same date each month.

Keeping Good Office Tenants for the Long Term

Replacing an office tenant is expensive. A floor can stay empty for months, the outgoing tenant's partitions may need removal, and the new tenant may ask for another fit-out period. It is usually far cheaper to keep a good tenant happy than to find a new one.

• Respond quickly to problems: a lift breakdown or a generator failure affects a company's entire workforce. Fast, visible action builds trust.
• Be transparent about service charge: share a simple yearly summary of what was spent on guards, cleaning, generator and lifts.
• Plan renewals early: start the renewal conversation six months before the lease ends, not six weeks.
• Be reasonable on escalation: an increase in line with the market keeps a tenant; an aggressive one may push them to move.
• Accommodate growth: if a tenant needs more space and another floor becomes vacant, offer it to them first.

For example (illustrative): If a 2,500 sq ft floor at Tk 175,000 base rent stays vacant for four months after a tenant leaves, the lost rent is 4 x 175,000 = Tk 700,000, before counting agent fees and any fit-out concession for the next tenant. Against that, agreeing to a slightly smaller increase at renewal is often the better business decision.

Common Mistakes When Renting Out Office Space

• Converting residential floors to offices without checking approvals.
• Advertising without parking and backup power information.
• Unclear area measurement, leading to disputes over rent.
• Service charge set as a guess, then running at a loss.
• Allowing structural changes during fit-out without drawings or approval.
• Not collecting tax deduction certificates from corporate tenants.
• No clause on reinstatement, leaving you with partitions and cabling to remove.
• Signing with a company through someone who has no written authority.

Landlord's Office Letting Checklist

Final Thoughts

Office tenants can be some of the most stable and profitable tenants a Dhaka landlord can have, provided the building is suitable, the costs are transparent and the lease is clear. Invest in safety, backup power and parking, calculate the service charge from real numbers, screen the company properly, and write every important term into the lease.

When you have several floors or tenants, tracking rent, service charge, sub-metered electricity and dues becomes a job in itself. Bariwala ERP (বাড়িওয়ালা ERP) lets you set up buildings, floors and units, bill rent and sub-meter electricity together in monthly invoices, record payments with receipts, log maintenance requests and visitor records, and see income and expense reports in one place. Good systems make good tenants stay longer.