𝗧𝗵𝗲 𝗥𝗶𝘀𝗸 𝗶𝗻 𝗕𝘂𝘆𝗶𝗻𝗴 𝗢𝗳𝗳𝗶𝗰𝗲 𝗦𝗽𝗮𝗰𝗲

Most investors I speak to ask the same questions when evaluating an office space:
"𝙒𝙝𝙖𝙩'𝙨 𝙩𝙝𝙚 𝙥𝙧𝙞𝙘𝙚 𝙥𝙚𝙧 𝙨𝙦 𝙛𝙩? 𝙒𝙝𝙖𝙩'𝙨 𝙩𝙝𝙚 𝙧𝙚𝙣𝙩𝙖𝙡 𝙮𝙞𝙚𝙡𝙙? 𝙄𝙨 𝙞𝙩 𝙖 𝙂𝙧𝙖𝙙𝙚 𝘼 𝙗𝙪𝙞𝙡𝙙𝙞𝙣𝙜?"

These are good questions. But there's one question almost nobody asks, and it's the one that matters most:
"𝗪𝗵𝗲𝗻 𝗱𝗼𝗲𝘀 𝘁𝗵𝗲 𝗹𝗼𝗰𝗸–𝗶𝗻 𝗽𝗲𝗿𝗶𝗼𝗱 𝗲𝗻𝗱?"

In my experience of over 20 years in this Industry, this is where investors get caught off guard.
Here's how it works. A typical commercial lease in India is structured for 9 years total. But the lock-in, the period during which the tenant is legally bound to stay, is often just 3 years. After that, the tenant can exit with a few months' notice.

So you might buy a property that looks "fully leased" and stable, only to find that the lock-in expires in 18 months. Suddenly, your "assured income" asset becomes a vacant one, and you're staring at the carrying cost with no rent coming in.

What I always tell investors: before anything else, read the lease. Specifically, look at:
- The remaining lock-in period (not just the total lease term)
- The notice period required for exit
- Any rent-free or fit-out periods already consumed
- Whether the lease has a renewal clause, and on whose terms

A property with a strong tenant and 6 years of lock-in remaining is a very different investment from one with the same tenant but only 18 months left on the lock-in. The numbers look the same on paper. The risk profile is completely different.
Buy the lease, not just the property.

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