{"id":5065,"date":"2020-12-29T19:47:18","date_gmt":"2020-12-29T14:17:18","guid":{"rendered":"https:\/\/www.aurobindorealty.com\/?p=5065"},"modified":"2026-11-06T05:51:57","modified_gmt":"2026-11-06T05:51:57","slug":"things-need-to-consider-when-leasing-office-space","status":"publish","type":"post","link":"https:\/\/aurorealty.com\/blog\/things-need-to-consider-when-leasing-office-space\/","title":{"rendered":"Things Need To Consider When Leasing Office Space"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<label class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/label>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aurorealty.com\/blog\/things-need-to-consider-when-leasing-office-space\/#Points_to_Consider_When_Leasing_an_Office_Space_things_to_consider_when_leasing_office_space\" >Points to Consider When Leasing an Office Space: things to consider when leasing office space<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aurorealty.com\/blog\/things-need-to-consider-when-leasing-office-space\/#Related_Reading\" >Related Reading<\/a><\/li><\/ul><\/nav><\/div>\n<div id=\"bsf_rt_marker\"><\/div><p class=\"wp-block-paragraph\"><em>Last updated: 24 October 2026<\/em><\/p>\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/aurorealty.com\/blog\/wp-content\/uploads\/2026\/11\/things-to-consider-when-leasing-office-space-guide.jpg\" alt=\"Things to consider when leasing office space \u2013 Auro Realty guide\" class=\"wp-image-16233\" srcset=\"https:\/\/aurorealty.com\/blog\/wp-content\/uploads\/2026\/11\/things-to-consider-when-leasing-office-space-guide.jpg 1024w, https:\/\/aurorealty.com\/blog\/wp-content\/uploads\/2026\/11\/things-to-consider-when-leasing-office-space-guide-300x169.jpg 300w, https:\/\/aurorealty.com\/blog\/wp-content\/uploads\/2026\/11\/things-to-consider-when-leasing-office-space-guide-768x432.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n<p>Signing an office lease is one of those business decisions that feels simple until you start reading the actual document. A commercial lease in India can run 30 to 80 pages, bundle half a dozen different charges, and commit your business to the space for three to nine years. Getting the decision right, the location, the terms, the escalation clauses, the exit options, makes the difference between a growth-enabling office and an expensive drag on cash flow.<\/p>\n\n<p>This guide covers the <strong>key things to consider when leasing office space<\/strong> in India in 2026, written for founders, operations leads, and admin teams taking on a new lease. It applies to both conventional Grade A office buildings and managed coworking setups, though some clauses differ. The aim is to help you avoid the mistakes that bite six months later.<\/p>\n\n<h2><span class=\"ez-toc-section\" id=\"Points_to_Consider_When_Leasing_an_Office_Space_things_to_consider_when_leasing_office_space\"><\/span>Points to Consider When Leasing an Office Space: things to consider when leasing office space<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Work through these areas before you sign anything. If a landlord or broker is pushing for a quick decision, slow down, good landlords do not mind negotiation on sensible terms.<\/p>\n\n<h3>1. Location, Connectivity, and Employee Commute<\/h3>\n<p>Location is the single biggest lease decision. It affects hiring (candidates filter job ads by proximity), retention (long commutes drive attrition), and client perception. Ask yourself: can your current and target hires actually reach this office in under 45 minutes during peak hours?<\/p>\n<p>For Hyderabad specifically, the established commercial corridors are HITEC City, Madhapur, Gachibowli, and Nanakramguda for IT, ITES, and R&amp;D; Banjara Hills and Jubilee Hills for professional services and creative firms; and Begumpet and Somajiguda for established BFSI and legal practices. New supply is concentrated around Kokapet and Raidurgam, with metro and ORR access improving year by year. Before signing, test the commute at 9:30 AM and 6:30 PM on a weekday, not a quiet Sunday site visit.<\/p>\n\n<h3>2. Built-Up vs Carpet vs Super Built-Up Area<\/h3>\n<p>This is the single most misunderstood number in commercial leasing. Indian commercial landlords quote rent on &#8220;super built-up&#8221; area, which includes your unit&#8217;s carpet area plus a share of lobbies, lifts, corridors, and sometimes parking. The loading factor (difference between carpet and super built-up) varies by building; ask for it in writing and compare buildings on carpet area.<\/p>\n<p>Always get the carpet area in writing. A 5,000 sq ft &#8220;super built-up&#8221; office might be just 3,700 sq ft of actual usable carpet. That changes your cost per usable seat significantly. For a team of 50, the wrong assumption here can mean the office is too cramped from day one.<\/p>\n\n<h3>3. Lease Term, Lock-In, and Exit Clauses<\/h3>\n<p>Indian commercial leases typically run 3, 5, or 9 years. Inside that, the &#8220;lock-in period&#8221; is the stretch where you cannot exit without paying the remaining rent. Lock-ins of 2 to 3 years are standard, but landlords often try to push 5-year lock-ins on larger floors. Negotiate hard.<\/p>\n<p><strong>Exit clause:<\/strong> What happens if your headcount halves or the business pivots? Look for a unilateral exit option after the lock-in with 3 to 6 months&#8217; notice. Some landlords offer a &#8220;break clause&#8221; at the halfway point of the lease in exchange for a penalty, often 6 to 12 months&#8217; rent. It is worth negotiating this in upfront, trying to renegotiate after signing almost never works.<\/p>\n<p><strong>Renewal option:<\/strong> Get a right of first refusal for lease renewal at a pre-agreed escalation, negotiated in writing. Without this, you are at the landlord&#8217;s mercy at renewal time.<\/p>\n\n<h3>4. Rent Escalation and Hidden Costs<\/h3>\n<p>Lease agreements usually include a rent escalation clause. Check the percentage, how often it applies and whether it compounds. Watch out for escalation written as a percentage on the prevailing rent, which compounds, so work out the total over the lease term.<\/p>\n<p>The base rent is only part of the story. Calculate the total monthly outflow including:<\/p>\n<p><strong>CAM charges (Common Area Maintenance):<\/strong> Charged per sq ft in most Grade A buildings, covering lobby, security, lifts, landscaping. Separate from rent and often escalates independently.<\/p>\n<p><strong>Electricity deposit and separate meter charges:<\/strong> Commercial electricity in Telangana is INR 8 to 10 per unit, significantly higher than residential rates. Get the billing method specified in writing, sub-metered vs flat-rate changes the monthly cost considerably.<\/p>\n<p><strong>Property tax:<\/strong> Sometimes passed through to the tenant. Check who bears it in your agreement.<\/p>\n<p><strong>Security deposit:<\/strong> Standard is 6 to 12 months&#8217; rent as refundable deposit. Negotiate for a bank guarantee instead of cash for larger spaces.<\/p>\n<p><strong>Fit-out and handover conditions:<\/strong> Is the space being given &#8220;warm shell&#8221; (basic flooring, ceiling, AC infrastructure) or &#8220;cold shell&#8221; (bare structure)? Warm shell handover saves you INR 800 to 1,500 per sq ft in fit-out costs.<\/p>\n\n<h3>5. Infrastructure, Parking, and Power Backup<\/h3>\n<p>Sub-par infrastructure will drain productivity in ways that are hard to price upfront. Ask specifically about:<\/p>\n<p><strong>Power backup:<\/strong> Ask what share of the load the DG backup covers. Check generator capacity per unit and whether there are any capping restrictions. A building with shared backup that trips when multiple ACs fire up is a major operational headache.<\/p>\n<p><strong>HVAC:<\/strong> Centralised chiller vs individual VRV systems affect both comfort and your electricity bill. Get the working hours written in: some buildings switch off AC after 8 PM, problematic if your team works late or operates across time zones.<\/p>\n<p><strong>Parking ratios:<\/strong> Indian commercial buildings typically allot 1 car park per 1,000 sq ft of leased area. That is often not enough for IT offices. Negotiate additional slots upfront or budget for nearby paid parking.<\/p>\n<p><strong>Internet and fibre readiness:<\/strong> Modern offices need redundant fibre connectivity from at least two providers. Verify this rather than assuming.<\/p>\n\n<h3>6. Legal Due Diligence Before Signing<\/h3>\n<p>Before you commit, verify the landlord actually has the right to lease the space and the building has clean approvals.<\/p>\n<p><strong>Title verification:<\/strong> Get an encumbrance certificate for the last 13 years. Confirm the person signing the lease is the registered owner or has a valid Power of Attorney.<\/p>\n<p><strong>Occupancy Certificate and commercial use approval:<\/strong> The building should have both. Using a residential-zoned property for commercial purposes exposes you to penalties and eviction risk.<\/p>\n<p><strong>RERA (if applicable):<\/strong> Some commercial buildings launched post-2017 are RERA-registered. If yours is, check for any active complaints.<\/p>\n<p><strong>GST registration:<\/strong> Landlord should be GST-registered if the law requires it; check with your tax adviser whether you can claim input tax credit on the GST you pay on rent.<\/p>\n<p>Getting a commercial real estate lawyer to review the draft lease has saved many businesses from costly mistakes. For larger leases, this is worth doing.<\/p>\n<p>Looking for office space? See Auro Realty\u2019s <a href=\"https:\/\/aurorealty.com\/commercial-projects\/orbit\">Orbit<\/a> and <a href=\"https:\/\/aurorealty.com\/commercial-projects\/galaxy\">Galaxy<\/a> in HITEC City and <a href=\"https:\/\/aurorealty.com\/commercial-projects\/the-office\">The Office<\/a> in Patancheru.<\/p>\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-5065-0\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What should you consider when leasing office space?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Key considerations include location and accessibility for employees and clients, adequate space for current needs plus growth, lease terms and rent escalation clauses, available infrastructure like power backup and internet, parking facilities, proximity to public transport, building maintenance and security, and hidden costs like maintenance charges and taxes.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-5065-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How much office space do you need per employee?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Space needs depend on how your team works. Open-plan layouts typically need less space per person than private offices. Factor in additional space for meeting rooms, reception, pantry, server room and circulation areas.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-5065-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is a typical office lease duration in India?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Office leases in India commonly run for several years with a lock-in period. Lease agreements usually include a rent escalation clause. Shorter leases offer flexibility but may have higher per-square-foot costs. Negotiate favourable terms including fit-out periods, renewal options, and early termination clauses.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_Reading\"><\/span>Related Reading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n\n<li><a href=\"https:\/\/aurorealty.com\/blog\/commercial-office-space-hitec-city-lease-guide\/\">Commercial Office Space in HITEC City<\/a><\/li>\n\n\n<li><a href=\"https:\/\/aurorealty.com\/blog\/commercial-spaces-in-hyderabad\/\">Commercial Space in Hyderabad<\/a><\/li>\n\n\n<li><a href=\"https:\/\/aurorealty.com\/blog\/a-guide-to-leasing-commercial-property\/\">A Guide to Leasing Commercial Property<\/a><\/li>\n\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Last updated: 24 October 2026 Signing an office lease is one of those business decisions that feels simple until you start reading the actual document. A commercial lease in India can run 30 to 80 pages, bundle half a dozen different charges, and commit your business to the space for three to nine years. Getting [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":8295,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[],"class_list":["post-5065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial"],"_links":{"self":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/5065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/comments?post=5065"}],"version-history":[{"count":9,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/5065\/revisions"}],"predecessor-version":[{"id":16234,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/5065\/revisions\/16234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/media\/8295"}],"wp:attachment":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/media?parent=5065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/categories?post=5065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/tags?post=5065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}