Everything you need to know about pre-leased commercial real estate in Gurgaon.

Commercial space is projected to be in high demand throughout the city in the future years. According to an industry assessment, leasing, purchasing, and selling of commercial real estate has not only restarted, but has risen above pre-Covid levels. As a result, it is not surprising that commercial properties in Gurgaon will continue to increase, and demand for pre-rented CRE will remain an appealing alternative for investors in 2023.

What exactly is Commercial Real Estate (CRE)?

A commercial property that has already been leased to a tenant is referred to as pre-rented CRE. The buyer is effectively purchasing the property in exchange for a guaranteed revenue stream from the renter, generally for a long-term lease.  This investment is suitable for people seeking an ongoing stream of passive income for themselves or their investment portfolio.

Benefits of Purchasing Pre-Rental Commercial Real Estate

There are various advantages to purchasing pre-rented commercial real estate, some of which are as follows:

• Monthly income assurance

One of the most important benefits of pre-rented commercial real estate is a predictable monthly cash stream. The renter is accountable for paying rent and upkeep irrespective of the economic climate, providing security to the property owner. These properties are frequently leased to tenants for a long length of time, usually between nine and twelve years. This implies that you can depend on a consistent stream of rental revenue to help cover the expense of the property and offer a solid source of income.

• Ready-to-go cash flow.

Because the property is already leased, the buyer does not need to bother about finding a tenant, promoting the property, or doing routine commercial space upkeep.

• Low operating expenses

Pre-rented commercial real estate is frequently easier to handle than other types of real estate investments. This is due to the fact that the renter is responsible for the property’s daily care, which can assist minimise the amount of time and effort required to maintain the property. The property remains in good shape over the lease term with regular upkeep.

• Investing with less risk

Pre-rented commercial real estate is often seen as a lower-risk investment when contrasted with other types of real estate. This is due to the fact that the property is already leased to a tenant, lowering the chance of vacancy. Furthermore, because the lease is for a longer period of time, there is a decreased possibility of the tenant departing before the lease term expires.

• Increased Return on Investment (ROI)

When compared to residential property, pre-rented CRE often provides a better ROI. This is because CRE often generates higher rents, and lease agreements are frequently for longer durations, such as nine years or more.

Considerations before purchasing pre-rented commercial real estate in Gurgaon.

• Location

Considering purchasing pre-rented CRE, one of the most crucial elements to consider is the property’s location. Gurgaon offers multiple great CRE locations, including Golf Course Extension Road, Central Gurgaon, and Sohna Road. These properties are anticipated to rise in value and provide greater rents.

• Tenant information

Before finishing the contract, it is critical to analyse the renter who has rented the property. A good financial track record, a robust company sustainability strategy, and a long-term leasing agreement are required of the tenant. A tenant with an outstanding track record and a reliable business is unlikely to miss rent payments.

• Lease contract

It is critical to thoroughly examine the lease agreement before making a purchase. The rent agreement should define the rent amount, lease period, and the tenant’s and landlord’s duties. The contract should also include rental increases, renewals, and termination. It should be properly registered as well.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.