Commercial Office Leasing Nuances

Headline rent is the most widely quoted metric in India's commercial office market, but it rarely reflects the true cost of occupancy. Security deposits, rent free periods, escalation schedules, CAM charges and other lease terms can materially alter lease economics.

This Insights Note introduces an Effective Rent Framework that normalizes these variables into a single comparable measure, demonstrating through a real world case study how leases with different quoted rents can deliver nearly identical economic outcomes.