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Hrithik Roshan’s Parents Lease Commercial Space in Andheri West for ₹14.5 Lakh a Month

Rakesh Roshan and Wife leases to Fabindia

Hrithik Roshan’s parents, filmmaker Rakesh Roshan and Pramila Rakesh Roshan, have leased a commercial property in Mumbai to Fabindia Limited for a monthly rent of ₹14.5 lakh, according to documents accessed by CRE Matrix. The deal reflects steady demand for premium retail spaces in established commercial locations across the city.

The property is located at De Mall on Veera Desai Road in Andheri West, a well-known retail and commercial corridor. It offers a carpet area of 6,389.47 sq ft, with the rent working out to around ₹227 per sq ft. This rate aligns with current market levels for quality retail assets in the area.

Key Lease Terms and Timeline

The lease agreement was registered on December 9, 2025, and includes a security deposit of ₹87 lakh. Fabindia Limited also received access to five car parking slots as part of the deal. The landlord handed over the premises on September 1, 2025.

The lease runs for a period of five years. Fabindia has a lock-in period of 15 months, while Rakesh Roshan and Pramila Rakesh Roshan are committed to a full five-year lock-in. As a result, the structure offers flexibility to the tenant and long-term income visibility to the owners.

Structured Rental Escalation

The agreement clearly outlines rental escalation across the lease term. The monthly rent stands at ₹14.5 lakh in the first year. It rises to ₹15 lakh in the second year and ₹16 lakh in the third year. In the fourth and fifth years, the rent increases further to ₹18.4 lakh per month, reflecting confidence in the long-term potential of Andheri West as a retail destination.

Celebrity Interest in Commercial Real Estate

Commenting on the transaction, Abhishek Kiran Gupta, CEO, CRE Matrix, said the deal highlights the growing interest among celebrities in commercial real estate. He noted that prime retail assets offer stable cash flows, predictable returns, and long-term value appreciation, making them an attractive wealth-building option for high-net-worth individuals.

Recent Transactions

Recent office and commercial space deals involving celebrities show a clear shift towards income-generating real estate assets. Increasingly, high-profile investors are choosing premium retail spaces and Grade A offices to secure steady rental income and long-term capital appreciation.

Earlier this year, Bollywood actor Manoj Bajpayee and his wife, Shabana Bajpayee, leased two commercial properties in Andheri West for a monthly rent of ₹10.9 lakh for a five-year term, highlighting the continued appeal of Mumbai’s western suburbs for commercial investments.

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Apple Opens First Store in Noida at DLF Mall of India, Signs ₹65 Crore Lease for 11 Years

Apple is set to open its first retail store in Noida on December 11, marking the company’s fifth official Apple Store in India and its second in the Delhi NCR region after Saket. The new outlet is located at DLF Mall of India, one of the country’s largest and most prominent shopping destinations.

According to sublease documents accessed by CRE Matrix, Apple India Private Ltd has leased 8,240.78 sq ft of retail space at the mall for 11 years. The total rental outgo over the full tenure stands at approximately ₹65 crore, reflecting a long-term commitment to the market.

Lease Details

The documents show that Apple has leased six ground-floor retail units at DLF Mall of India, together comprising 8,240.78 sq ft of carpet area. The agreed rental stands at ₹263.15 per sq ft per month. This translates to a monthly rent of around ₹45.3 lakh and an annual rent of about ₹5.4 crore.

Additionally, the lease includes a one-year rent-free period. It also features a 15% rent escalation every three years. Over the full 11-year tenure, the total rent aggregates to ₹64.9 crore. Apple India Private Ltd and Paliwal Real Estate Limited signed the sublease deed on February 25, 2025.

Meanwhile, queries have been sent to Apple India, DLF, and Paliwal Real Estate Limited. The story will be updated if responses are received.

Strengthening Apple’s NCR Presence

With this launch, Apple strengthens its footprint in the Delhi NCR region. The Noida outlet follows the Saket store that opened in 2023. Retail experts say the move signals Apple’s growing confidence in Noida as a high-consumption and high-growth market.

Although rents for smaller stores at DLF Mall of India typically range between ₹500 and ₹700 per sq ft, larger-format stores enjoy pricing advantages. Due to scale and negotiation leverage, brands like Apple secure lower effective rentals. Experts also note that Apple’s Noida rent aligns closely with its Saket store, reinforcing consistency in its leasing approach.

Location Advantage and Catchment

DLF Mall of India spans nearly one million sq ft, making it Noida’s largest mall. It is also more than twice the size of Select Citywalk, Saket. Importantly, it remains the only retail centre of this scale and category in the region.

As a result, the Noida store benefits from a wide regional catchment. This includes Ghaziabad, Greater Noida, South Delhi, Agra, Mathura, and several emerging demand hubs.

Brand Pull Reflected in Leasing Strategy

According to industry observers, Apple’s rental levels reflect more than just location quality. They also highlight the strong footfalls and brand value that Apple brings to large-format malls. In turn, the Noida lease enhances DLF Mall of India’s position as a marquee retail destination in North India.

Overall, with the Noida opening, Apple continues its measured and data-driven retail expansion in India. The strategy balances prime locations, uniform store formats, and long-term lease commitments across key urban markets.

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Current Trends in Commercial Real Estate (CRE) in India

Current Trends in Commercial Real Estate (CRE) in India

India’s Commercial Real Estate (CRE) sector is undergoing a strong growth phase, driven by rising office demand, expanding infrastructure, and stable economic fundamentals. For investors, developers, and occupiers, CRE is becoming one of the most attractive asset classes due to its high yield potential, low volatility, and increasing institutional participation.

This blog covers:

Key drivers fueling India’s CRE boom
Emerging trends across office, retail, warehousing, and mixed-use segments
City-wise performance and hotspots
Risks affecting the sector
The 3–5-year outlook for CRE investors

What’s Driving the CRE Boom in India

Economic Growth & Urbanization

Growth in Urban Population & Tier-2/3 Cities

India’s rapid urbanization is shifting demand toward business districts, IT parks, and commercial hubs. With Tier-2 and Tier-3 cities improving their infrastructure and talent base, they are emerging as the next hotspots for office development and flexible workspaces.

Expansion of Industries and Outsourcing Sectors (IT/ITeS, Retail, Logistics)

Sectors like IT/ITeS, BFSI, GCCs, retail, and e-commerce continue to be the backbone of office demand. Global Capability Centers (GCCs) are expanding, particularly in Bengaluru, Hyderabad, Chennai, Pune, and NCR.

Demand for Flexible Workspaces & Co-Working

Rise of Startups and SMEs — Shift from Traditional Offices

With cost optimization becoming a priority, companies are preferring plug-and-play coworking and managed office spaces. Startups and SMEs are driving this flexible ecosystem.

Influence of the Hybrid Working Model Post-Pandemic

Hybrid models have reshaped office leasing patterns. Demand is now spread across both central business districts (CBDs) and peripheral micro-markets, as seen in Whitefield (Bengaluru) and North Chennai — both witnessing strong quarterly rental growth.

Infrastructure Development & Connectivity

Government Initiatives: Metro, Smart Cities, Road/Rail Connectivity

Large-scale metro expansions, smart city missions, and new expressways (like Dwarka Expressway, Mumbai Coastal Road) are directly enhancing commercial property demand.

Impact on Commercial Property Valuations

Areas with improving connectivity—like NCR’s NH-48 Prime—have seen office rents rise over 16% YoY and a 3-year CAGR of 10.1%, demonstrating strong value creation where infra growth is taking place.

Key Emerging Trends in CRE (2024–2026)

Rise of Logistics & Warehousing Real Estate

E-Commerce Boom & Demand for Storage + Last-Mile Delivery Hubs

Online retail and 3PL logistics companies are aggressively expanding warehousing spaces across Mumbai, NCR, Pune, and Hyderabad.

Incentives for Industrial Parks & SEZs

Government support for logistics parks, free trade zones (FTZs), and industrial corridors is accelerating investor interest.

Shift Towards Grade-A Office Spaces with ESG/Green Certifications

Growing Preference for Energy-Efficient, Sustainable Buildings

Corporates now prefer Grade-A, IGBC/LEED-certified office buildings due to energy efficiency, compliance requirements, and employee well-being.

Demand from Multinational & Large Indian Firms

Fortune 500 companies and GCCs are driving bulk leasing in Grade-A corridors in Bengaluru, Mumbai, NCR, and Hyderabad.

Diversification: Retail, Mixed-Use & Co-Living Developments

Mixed-Use Developments Combining Offices, Retail, F&B, Recreation

Integrated townships and mixed-use business parks are becoming the norm, offering office spaces along with malls, food courts, entertainment, and residential blocks.

Co-Living / Serviced-Apartment Growth in Metros

Cities with strong migrant populations—Bengaluru, Mumbai, Pune, NCR—are seeing rapid expansion in co-living and serviced apartments.

Regional Hotspots & Emerging Cities

Metro Cities vs Tier-2 / Tier-3 Cities

Overview of Metros (Mumbai, Bengaluru, NCR, Pune)

Delhi NCR: Led the country with a 16.4% YoY surge in office rentals between April–June.
Mumbai: Recorded the highest quarterly rental growth of 3.6%, reaffirming its position as India’s most resilient office market.
Bengaluru: Whitefield shows strong momentum as companies shift outside CBDs.
Chennai: Northern suburbs are witnessing increased leasing activity.

Emerging Strength in Cities Like Hyderabad, Ahmedabad, Jaipur, Coimbatore

Improving infrastructure, growing IT presence, and business-friendly policies are boosting these cities’ CRE prospects.

What Makes a City Attractive for CRE Investors

Connectivity, Talent Pool, Business Environment, Policy Incentives

A combination of strong transport networks, skilled workforce, government incentives, and presence of top corporates makes a market favorable for CRE investment.

Challenges & Risks Affecting CRE in India

Regulatory & Compliance Issues

Real Estate Regulations, Approvals, RERA Impact

While RERA has brought transparency, regulatory approval cycles remain slow in several states.

Heterogeneous Tax & Compliance Environment Across States

Tax incentives, stamp duties, and policy rules differ widely across regions.

Economic Cycles & Global Uncertainty

Impact of Global Recession Risks, Interest Rate Fluctuations

Economic uncertainties can delay leasing decisions and slow down new construction.

Vacancy Rates, Rental Yield Pressures

Certain micro-markets continue to face oversupply challenges.

Sustainability & Environmental Considerations

Need for Green Certification, Energy Efficiency, Waste Management

Corporate occupiers increasingly demand buildings that meet sustainability metrics.

Balancing Profitability vs ESG Compliance

Developers often weigh upfront costs vs long-term operational efficiencies.

Outlook: What to Expect in the Next 3–5 Years

Continued Growth in Logistics & Warehousing

Driven by e-commerce and supply chain modernization.

Greater Demand for Hybrid & Flexible Office Spaces

Coworking and managed offices will continue strong leasing momentum.

Rise of Mixed-Use and Integrated Developments

More developers will adopt the work + live + shop format.

Increased Focus on ESG, Tech-Enabled Facilities, and Investor Interest

Smart buildings, automation, energy-efficient designs, and REIT participation will rise.

FAQs About CRE in India

Is investing in CRE a good idea right now in India?

Yes, CRE remains attractive due to stable rentals, strong demand in Grade-A markets, and growth in logistics/warehousing. However, investors should evaluate market risks and the supply-demand balance.

Which cities offer the best returns for CRE investors?

Mumbai, Bengaluru, NCR, Hyderabad, and Pune are top choices. Emerging cities like Ahmedabad, Jaipur, and Coimbatore are gaining traction due to rising infrastructure and business activity.

How does sustainability (green buildings) affect CRE investment value? Green-certified buildings often command higher rentals, lower vacancy, and increased investor preference due to ESG compliance requirements.

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JLL Leases 1.2 Lakh Sq Ft at Prestige Skytech, Hyderabad for ₹64 Lakh a Month

JLL leases office space in Hyderabad

Global real estate consultancy Jones Lang LaSalle Property Consultants India (JLL) has leased 1.21 lakh sq ft of office space at Prestige Skytech – Sky One in Poppalguda, Gandipet mandal, Hyderabad. The deal highlights growing confidence in the city’s western office corridor.

According to property registration data accessed from CRE Matrix, JLL leased the space from Mrs. Prahathi Madhu at a starting monthly rent of ₹64.13 lakh. The agreement was registered on November 28, 2025, with a security deposit of ₹3.85 crore.

Transaction Details

The lease covers 1,20,993 sq ft at a starting rent of ₹53 per sq ft per month. This translates to a monthly outgo of ₹64.13 lakh. The agreement runs for 60 months and includes a 36-month lock-in period. The deal also provides 134 car parking spaces. In addition, JLL will pay CAM charges of ₹13 per sq ft per month.

The property was scheduled for handover on September 15, 2025. However, the rent will start from April 15, 2026, giving JLL a seven-month fit-out or rent-free period. The lease includes a 15% rental escalation after three years from the rent start date.

Western Corridor Continues to Attract Grade A Demand

The transaction highlights steady demand for Grade A office space in Hyderabad. Emerging micro-markets such as Poppalguda and Gandipet continue to gain traction. Improved infrastructure and close access to the Financial District support this shift.

Large office leases by global real estate firms show that corporate occupiers still prefer long-term, high-quality assets. This trend continues despite the rise of hybrid work models. Hyderabad’s western corridor is now strengthening its position as a key hub for large office mandates and institutional-grade developments.

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Mahindra Logistics Locks 3.28 Lakh Sq Ft Lease in Telangana

Mahindra Logistics Telangana warehouse lease

Mahindra Logistics Ltd (MLL) continues to accelerate its nationwide growth strategy in 2025, with a clear focus on strengthening its presence beyond traditional metro markets. According to documents accessed by CRE Matrix, MLL has leased 3.28 lakh sq ft of warehousing space in Siddipet, Telangana. The move reflects a calculated push toward emerging industrial corridors and fast-growing Tier-II and Tier-III locations.

The warehousing facility has been leased from Sri Aditya Industrial Logistics Park Private Limited and is located at Baswapuram, Kothur (Mulugu Mandal), Siddipet district. According to lease documents, the agreement spans 60 months, with Mahindra Logistics committing to a monthly rental of ₹6.89 crore. 

This transaction reinforces MLL’s ambition to build a pan-India logistics network that goes beyond established metro hubs. With manufacturing and consumption dispersing into smaller cities, Siddipet’s strategic location offers proximity to growing industrial clusters and improved regional connectivity across Telangana.

Part of a Larger Expansion Playbook

The Siddipet lease is not an isolated transaction but part of an aggressive expansion cycle by Mahindra Logistics throughout 2025. In January, the company leased 4.75 lakh sq ft of warehouse space near Khed, Pune, under a five-year agreement valued at nearly ₹73 crore. Shortly after, MLL added almost 4 lakh sq ft of warehousing capacity in the Northeast, covering key markets such as Guwahati and Agartala.

In another major move, April 2025 saw the logistics major secure a long-term lease for 4.75 lakh sq ft near Kolkata’s Howrah district, one of the largest logistics leasing transactions in eastern India this year. Collectively, these deals reflect a deliberate effort to diversify MLL’s warehousing and distribution footprint across multiple regions — Telangana in the south, Maharashtra in the west, Assam and Tripura in the northeast, and West Bengal in the east.

Riding the I&L Real Estate Upswing

Mahindra Logistics’ expansion comes at a time when India’s industrial and logistics (I&L) real estate sector is witnessing record demand. According to CBRE South Asia, leasing activity across the top eight Indian cities touched 37 million sq ft during January–September 2025, marking a 28% year-on-year growth.

The momentum has been powerful in the first half of 2025, with leasing volumes reaching an all-time high of 27.1 million sq ft. Demand continues to be driven by third-party logistics (3PL) players, e-commerce firms, manufacturing companies, and consumer goods enterprises scaling up their supply-chain infrastructure.

While established hubs such as Delhi-NCR, Bengaluru, and Hyderabad still dominate leasing volumes, Tier-II and Tier-III markets are rapidly gaining traction. This structural shift toward geographically diversified warehousing is reshaping India’s logistics landscape — a trend that Mahindra Logistics appears keen to capitalize on.

The Bigger Picture

The Siddipet warehouse lease underscores Mahindra Logistics’ long-term confidence in India’s evolving supply-chain ecosystem. By aligning its growth strategy with emerging consumption centers and industrial belts, the company is positioning itself to serve clients more efficiently while future-proofing its logistics network in a decentralizing economy.

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Tesla Expands India Presence with 33,000 Sq Ft Lease in Gurugram for Service and Delivery Operations

Tesla Leases Space for Service center in Gurugram (2)

In a major step towards strengthening its operations in India, global electric vehicle (EV) giant Tesla has leased over 33,000 square feet at Orchid Business Park on Gurugram’s Sohna Road, according to documents accessed by real estate analytics platform CRE Matrix. This marks Tesla’s continued commitment to establishing a robust EV ecosystem in the country.

The lease agreement, signed on July 28 under the name Tesla India Motors and Energy Pvt. Ltd., is valid for nine years with a three-year lock-in period. The facility will serve as a multi-functional centre—housing a service centre, delivery hub, and retail outlet for Tesla’s growing customer base in the Delhi-NCR region.

As part of the deal, Tesla has taken over the entire ground floor of the Orchid Business Park, covering 33,475 sq ft. The monthly rent is set at Rs 40.17 lakh, calculated at Rs 120 per sq ft, with an annual escalation of 4.75%. The automaker has also paid a stamp duty of Rs 20.69 lakh and deposited Rs 2.41 crore as a security deposit. Additionally, Tesla has secured 51 dedicated car parking slots as part of the transaction.

This new Gurugram facility adds to Tesla’s rapidly growing footprint in India. The company is also set to unveil its second showroom in the country on August 11, located at Worldmark 3 in Aerocity, New Delhi, near the IGI Airport. This follows the successful launch of Tesla’s first Indian showroom—a 4,000 sq ft space at Maker Maxity Mall in Mumbai’s Bandra Kurla Complex (BKC).

Earlier in May 2025, Tesla leased over 24,000 sq ft of warehousing space from Lodha Logistics Park in Kurla (West), Mumbai, at a monthly rent starting from Rs 37.5 lakh. That move underlined Tesla’s focus on building a strong backend supply chain to support vehicle delivery and after-sales service in India.

With these strategic leases, Tesla appears to be laying the groundwork for a full-fledged India launch, potentially ahead of local production or larger import volumes. As the country ramps up infrastructure and incentives for EV adoption, Tesla’s moves indicate long-term confidence in the Indian market.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now!

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D Mart Buys Land in Chandivali for Rs 117 Crore

D'Mart andheri East

The parent company of the well-known DMart supermarket chain, Avenue Supermarts has acquired a plot of land in Chandivali, Andheri East, Mumbai, as part of its ongoing strategic expansion. The recent purchase of the 52,765 square feet property for ₹117 crore highlights the company’s dedication to strengthening its presence in the market. According to documents accessed by CRE Matrix, the deal was finalized on May 6, 2024, and Avenue Supermarts Ltd paid ₹7.03 crore in stamp duty for the transaction.

At the moment, this property is home to an industrial ground-plus-one building. It is located in an industrial zone, and the company plans to turn it into a retail center or a commercial structure. The acquisition increases Avenue Supermart’s already remarkable stockpile which consists of a wide range of properties across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhatisgarh, National Capital Region, Tamil Nadu, Punjab, and Rajasthan. Radhakishan Damani founded Avenue Supermart Ltd’s major brand DMart and began its operations in 2002. From just one store located in Powai, Mumbai, DMart has over 333 stores across different locations. 

Avenue Supermart Ltd’s recent acquisition perpetuates its strategic property investment trend. September 2023 marked the purchase of three levels of retail space within a 31-storey residential building in Kandivali West for ₹88.74 crore. These ventures indicate the company’s intent to diversify its retail offerings and address the evolving needs of consumers.

DMart has witnessed rapid growth with two new stores opening on average each month. It announced in July 2023 that stores would be opened in Jodhpur, Rajasthan, and Akola, Maharashtra. In August 2023, it inaugurated retail locations in Ahmedabad and Morbi, Gujarat, as per its regulatory disclosures on stock markets.

This planned expansion follows a string of real estate purchases by Avenue Supermarts Ltd. totaling ₹400 crores amid the COVID-19 pandemic in 2021. These investments show how resilient and strategically astute the business is in managing difficult market situations. Additionally, family members and colleagues of D’Mart founder Radhakrishna Damani purchased up to 28 home units worth ₹1,238 crore in Mumbai in February 2023, in what may be the largest real estate transaction in the nation. The agreement was reached not too long after the Budget 2023 plans were made, which capped capital gains from the sale of long-term assets, such as real estate, at ₹10 crore.

The company’s plan, for growth is in line with its goal of offering customers access to high-quality products at prices. Avenue Supermarts Ltd is strengthening its market position and promoting long-term success by adding outlets and diversifying its retail offerings.

Recent Transactions

In a recent transaction, Bank of America Leases Two Commercial Units in Malad at a monthly rent of ₹91.5 Lakh

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4 steps to follow to score a great commercial real estate deal

Investing in commercial real estate can prove to be more beneficial when compared to residential properties. Commercial property owners enjoy the extra cash flow, the valuable economies of scale, the comparatively open playing field, the abundant market for good, reasonably-priced property managers, and the chance for a possibly larger payoff from commercial real estate.

Commercial Deal

But how do you assess the best properties? And how do the great deals differ from the duds?

Understand What the Insiders Know

To be a participant in commercial real estate, learn to think like a professional. For instance, understand that commercial property is estimated differently when compared to residential property. Income generated on commercial real estate is directly linked to its usable square footage. That’s not the case when it comes to individual houses. When it comes to real estate investment, commercial properties offer a bigger cash flow. Moreover, commercial property leases are longer when compared to single-family residences. This generally paves the way for larger cash flow.

Learn to Detect a Good Deal 

The leading real estate experts recognize a great deal when they see one. How do they do that? First, they come up with an exit strategy. The finest deals are the ones you know you can move away from. It helps to have the eye of the landowner – always be on the lookout for damage that needs repairs, understand how to evaluate risk and make sure you get the calculator out to guarantee that the property meets your financial objectives.

Chart a plan of Action 

One of the primary parameters of real estate investment of commercial properties is to ask yourself how much can you afford to pay and then shop around for mortgages to get an idea of how much you will pay over the life of the mortgage. Using tools such as mortgage calculators can assist you in coming up with great estimates of the sum cost of your home.

Seek Motivated Sellers

Just like any business, customers are majorly responsible for the growth of real estate. Your job is to seek them, specifically those, who are ready and willing to sell below the market value. The fact is nothing happens until you get a deal, which is generally accompanied by a motivated seller. This is someone with a strong reason to sell below the market value. If your seller isn’t motivated enough, they won’t be ready to negotiate.

Use a Three-Pronged Method to Asses Properties 

You need to be adaptable when looking for good deals for real estate investment. Scour on the internet, read the classified ads, and hire experts to seek the best properties. Agents can assist you in seeking lucrative real estate investment in exchange for a referral fee.In a nutshell, these are some of the steps to follow to score a great real estate investment. Head over to CRE Matrix to look for great deals in the commercial real estate sector in India.

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How to Avoid Signing a Bad Commercial Deal?

When you sign a commercial lease, it is a big step for your business. It is a new opportunity that can help drive your company to a new level. If the process goes well, you’ll have commercial space that saves your capital, accommodates your growth, matches your brands, and much more. However, if you sign a bad commercial lease, you could end up shelling more than required; acquire a bad space, or both for many years.

Commercial Buildings

Fortunately, the mistakes that result in bad commercial real estate decisions can be easy to avert, though. If you follow the below-mentioned steps, you can shield your business and set yourself to sign a great commercial property for lease.

Before you even begin to think about zeroing in on a specific building or a particular commercial space, you need to take a step back and conduct thorough research. You need to find out:

  • What do you require?
  • What you are willing to spend?
  • Where do you wish to be?
  • Where do you see your business progressing?

To do this, you will need to take a look at what you’re already doing in your current offices or other commercial spaces. Then, gather all the stakeholders together to comprehend their present as well as future requirements. Once you have completed your research, you will be ready to proceed to the subsequent part of the process.

Here are a couple of things to keep in mind to avoid signing a bad commercial lease:

Thoroughly Go Through the Details of Your Lease:

It’s extremely important to read the details of your commercial lease agreement prior to signing it. It is standard advice but is regularly ignored. Before you zero in on any commercial property for lease, it is vital to read your lease thoroughly as leases are complicated lease documents that can impact economics if a single word is misinterpreted.

Evaluate All Expenses

Signing a commercial property for lease shows you a whole array of different expenditures. Your rent and any proposed raise over the life of your lease are most probably significant, but they are the only expenses you will be paying. Pay close attention to the operating expenses of the building and how you will be accountable for them. If you can, try to get a gist of how the building is managed. If repair and maintenance expenses are less, it could signify greater expenses in the future as deferred maintenance causes more than regular repair bills.

Pay Close Attention to the End of the Lease Tenure 

Before you select the commercial property for lease, you need to keep certain parameters in mind. One of them is the end of your lease. The ending of the commercial lease is as significant as the beginning. When your lease expires, you will either wish to leave the office space or continue with it. It’s much easier to prepare for both possible outcomes at the start as opposed to start planning when the end is right around the corner. The key to continuing in the same space is to have renewal options drafted into your initial commercial lease agreement.

In a nutshell, the above-mentioned are some of the factors that you need to take into account before you get a commercial property for lease. In this way, you will be able to avoid signing a bad commercial lease that will prove to be disadvantageous for you.

Head over to CRE Matrix to view various commercial leases across industries in India to understand real estate better.

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What are the Difficulties Faced while Obtaining a Commercial Lease?

The commercial real estate sector in India has developed and grown by leaps and bounds, particularly after the pandemic. Just like any other industry, the real estate sector was also impacted by Covid-19. But the sector slowly but surely bounced back. This has led to many more commercial properties that are taken on lease.

What is a Commercial Lease?

A commercial lease is referred to as a contract between two parties in which one party (the landlord) permits another party (the tenant) to exclusively use the plot or building or office space for a specific duration (the term) in exchange for rent or a premium.

If the lease is not properly handled, then it will result in years of disagreements, lawsuits, and extravagant expenses. When you take the viewpoint of the landlord, if the lease is not properly drafted, it can lead to a number of issues.

This is why you need to be careful before taking a commercial property for lease. Here are a couple of areas that you need to pay attention to while obtaining the commercial lease:

Space:

Prior to taking a commercial property for lease, it is vital to find out how much room is included in the rental. It is also important to clarify whether your rental expenditure was computed using rental square footage or available square footage. Since common areas including toilers, hallways, elevators and lobbies are not part of the usable square footage, it is usually less than the rental square footage.

Lease: 

The period of a commercial lease is generally referred to as its ‘term’. It dictates the beginning and end dates of the lease contract, as well as whether or not there are specific renewal options. When it comes to longer lease terms, landlords are generally more flexible in negotiating leases but it is vital to keep the company’s requirements in mind as a longer lease generally means less flexibility in adapting to change as the company grows.

Termination 

If you’re taking a commercial property on lease, you need to be aware of all the procedures that come with terminating a commercial lease early as well as the conditions for ending a lease before the automatic renewal takes place. If the lease does not state a right to cancel, do consider securing a right to end the lease early in exchange for the payment of a fixed sum of liquidated damages to the landlord as a means to get out of the contract.

Security

When you take a commercial property on lease, you need to make sure that it’s obvious what can be subtracted from the security deposit and what can’t. Although laws prevent specific acts involving security deposits, you need to ensure that the commercial lease lays out the expectations and conditions for its return.

In a nutshell, these are some of the factors that you need to pay attention to before taking a commercial property on lease.

Head over to CRE Matrix to get insights on various commercial leases from across different sectors in India.