Many pre-leased properties in Sector 127 have a healthy potential to grow, owing to the fast-paced growth of the economy. As the demand for pre-leased commercial spaces is spiking in Noida, investors must have a complete understanding of certain factors including location, rentals and design of the property. Pre-leased properties remain one of the strong beneficiaries of Noida, as many Fortune 500 companies incessantly continue to invest in Sector 127. Thus, a pre-leased or pre-rented commercial property carries immense potential for investors and companies.
Developed by Bhutani Group, Bhutani Technopark is one good example where an investor can have a pre-leased property in Sector 127. Considering the infrastructural background of the Bhutani Group, the project has become an ideal option for pre-leased property investment. Many commercial shops for sale offer pre-leased investment plans, which makes it crucial to understand several factors before buying a pre-leased commercial property. Therefore, here are seven tips that should be considered while making a pre-leased investment plan in Sector 127.
Infrastructure
When it comes to pre-leased commercial properties , new and modern office space play an important role in terms of better rentals and long-term tenancies. It is so because new projects are much stronger, better designed, deep-rooted and more energy efficient. Investors should also look out for glass facades, high energy efficiency ratings, well-designed lobbies, parking spaces and more. Even most ultra-high-net-worth individuals prefer to have Grade A office spaces while considering long-term investment.
Location
Location of the pre-leased property is another key factor in everything such as rentals, prospects and capital growth of a property. A strategic location will always generate lower vacancy rates, higher capital appreciation and long-term tenancies.
Demand & Supply
Before making any pre-leased investment plans in Sector 127, it would be wise to have thorough research on different properties. Having in-depth research via a popular real estate consultant would always make sense and help to form a good decision in the micro-markets.
Rental Income
Generally, the calculation of real estate rentals are derived from a recent transaction that happened in an area or an infrastructure. However, an informed investor will always have these numbers while doing the analysis. If the difference is between Rs 5-7 per sq ft, then it is acceptable, but anything with a difference of Rs 10 per sq ft or beyond would be taken as a made-up rental. Thus, if the rental is lower than the average, it shows a low acquisition cost.
Tenant
Tenant is also another important factor that determines the real rental income of a property. Blue-chip multinational companies, for instance, are the favorites amongst seasoned investors. Having good multinational corporations not only pay rentals on time but also contributes to increasing the capitalized value of the pre-leased properties.
Design
Most pre-leased properties in Sector 127 in Noida are fully-furnished spaces. During the time of purchase, an investor has to bear many capital expenditure costs, such as the demarcated carpet area, workstations, well-designed ceiling, and high-quality flooring. Even though the existing tenant might leave the property, having good quality fit-outs makes more sense.
Lease Term Period
Generally, a lease term of a pre-leased property might be around 5-15 years, but long-term leases are always considered to be safer. Whenever a security deposit is given to the landlord by the tenant, it creates confidence and a steady cash flow for the investor. Security deposits are usually around three to six months of the rental value. With this, lock-in also indicates that the tenant has strong business projections and commitment to a lease. Thus, a tenant with a high lock-in period makes the lease even more justifiable.
