Commercial Property — Offices, Shops & Warehouses
Higher yields than residential, but with vacancy cycles and legal/compliance complexity.
Higher yieldsLonger leasesVacancy risk
Leases & Cash Flows
- 3–9 year leases, 15% escalation every 3 years common
- CAM charges & who pays? Clarity in agreement
- Security deposit norms; lock-in and exit clauses
Due Diligence
- Title, OC, commercial approvals; fire safety compliance
- Tenant credit quality; alternative use potential
- Zoning and parking compliance
City-wise Yield Examples
| City/Micro-market | Gross Yield | Rent Range | Notes |
|---|---|---|---|
| Mumbai BKC/Andheri | 7–9% | ₹150–250/sqft | Premium; low vacancy but pricey |
| Pune Business District | 7.5–9.5% | ₹70–110/sqft | Manufacturing+IT mix |
| Bengaluru ORR | 8–10% | ₹90–140/sqft | Top tenant quality, tech demand |
| Hyderabad Financial Dist. | 8–10% | ₹70–120/sqft | New supply pipeline strong |
| NCR (Golf Course, Noida) | 7–9.5% | ₹80–140/sqft | Check covenant strength |
Illustrative commercial gross yields & rents (prime micro-markets); indicative only.
Commercial Yield Calculator
Pros
- 6–10% yields, longer leases
- Corporate tenants
Cons
- Vacancy/market cycle sensitivity
- Higher ticket size, compliance
Education only; not investment advice. Real estate is illiquid and location-specific; do independent due diligence.