Understanding real estate as an investment class

An investment in real estate is usually designed with a specific goal. It may be used immediately as a commercial investment or to earn a regular income. With the low costs of properties post-pandemic, making a property investment can yield dividends in the future. The real estate asset is purchased mainly for office or home use or as a way to invest in future appreciation. Every asset class has pros and cons. The decision is contingent on the motives of the purchaser.

Understanding the differences between real estate asset classes assets and different types of properties is essential for investors in this space. However, the information you can find is unclear or hard to comprehend. So, if you’re a new real estate investor or are just looking to learn the basics of investing in real estate, here’s a crash course on the different types of real estate asset classes, property types, and the essential things you must be aware of.

It has been the ideal moment in the past five years to purchase a property as an investment for personal use since prices and home loans are at their lowest levels. As a result, investors today have lucrative choices. Moreover, with RERA providing transparency and making payment options available, the chance of investing in an unfinished asset and the delays to completion is significantly reduced.

Indian real estate has attracted $4.3 billion in institutional investment from organizations like private equity firms, family offices, pension funds, and sovereign funds in 2021. However, this was down by 14% compared to the pandemic year 2020, as per the property advisor JLL India. On the other hand, the year 2020 witnessed an increase in investment due to two significant portfolio deals totaling $3.2 billion, announced in the final month of 2019. On the other hand, investments in 2021 were wide-ranging, with the initial three quarters showing improvement compared to the same quarter of the previous year.

Real estate for a better future

Making the future secure is usually accomplished by taking future needs or children in the back of one’s. It is the property for which one is planning long-term ownership or use. It’s not an investment. The money is invested in a home that won’t be liquidated or used to earn an ROI. This is a method for people to store money to be used in the future. As per the research done by 99acres, here are some of the real estate investment classes in India.

The real estate market in India is proliferating and has received a boost from self-made ultra-rich individuals who are investing actively in this area. The data shows that by 2021, the amount of ultra-high-net-worth people investing in residential properties increased over the previous year by 29%. The buying of second homes has become an increasingly popular choice for entrepreneurs. Following the pandemic, this sector in the property market saw a surge.

The typical Indian with assets of over $30 million owns two properties to their name. Experts believe that India’s residential real estate industry has seen increased investments recently. Investors, amid the outbreak, believed that real estate could be a solid and safe option to invest in. It also helps those who are struggling with financial fluctuations. In addition, real estate is believed to be a good investment choice that drives institutional demand. Real estate brokers consider that UHNWIs will be looking to acquire new homes by 2022. Most of them would like to invest in the local property first and then move to international markets such as the UAE, UK, and the US.

In India, the amount made by self-made UHNWIs is increasing. A lot of them have created successful businesses. Additionally, they have received funding from venture capitalists with very high prices to run their companies. In 2021, there’s been an 11% increase in the amount of UHNWIs in India. In India, Bengaluru was the highest increase in real estate investment. Delhi, along with Mumbai, quickly followed in the same direction. In these cities, investing in real estate can be an extremely lucrative option. This trend is predicted to drive the residential real estate market expansion in the next few years.

Benefits of buying real estate as an investment

The unexpected inflation rise in the economy can affect the cost of living for families/ individuals, including the surge in investment property prices. Due to inflation, the property investors can raise the amount they charge for rent, which becomes an additional burden for the tenants. The value of investment properties goes up to cover the rise in inflation.

On being the owner of a house, the mortgage payment does not get affected by inflation since it is pre-decided at the time of agreement with the bank, i.e., the absolute value of the property decreases with inflation. This is a blessing for the owners who don’t have to bear the additional cost of paying the extra rent. Therefore, purchasing a property can provide additional investment security during inflation.

As the saying goes, “Land will never stop growing because God has stopped making it anymore”, land ownership has been viewed as the best method to make real estate investments and will likely remain so. Many people purchase acres and sell in square yards or sq feet. Commercial properties, too, are a good investment for stable rents and an ideal alternative income source. The idea of earning rental income is the top priority for those who have put money into their personal or future needs. However, there are dangers of having to lease out a house and working alongside the tenants, managing the property, and even collecting rent.

Whether it is under construction or completed, residential real estate property cannot be priced in a way that one could expect colossal appreciation. Ready-to-move-in properties have also seen drops across India. However, the returns on the completed property aren’t that high because residential rentals are in the range of 1.5-3% per year.

Property under construction (Residential Retail, Office) has decreased at an average of 5 to 20% based on the location, developer, product, and other variables. There is no guarantee of short-term gains, but there might be a natural increase in the cost of a project as it is completed. In general, it’s the perfect time to invest in an under-construction home. The current property prices make a completed or under-construction residential property an excellent option to store money.

If you need commercial real estate in Surat, Vacanza is the right place for you. Visit our website, or call us today at +91 81284 13205 to get the best commercial spaces in Surat! You can also follow us on Facebook and LinkedIn to keep up with our latest projects and offerings! We are here to transform the city!

All you need to know about the innovative Mivan Technology.

Many development companies use Mivan technology today to ensure the structure’s durability. This is why Mivan technology is a great choice to build multiple houses in a short time. Mivan shuttering may be a better option than traditional methods of construction. Mivan shuttering is an aluminum formwork that has been used all over the world. It’s an economically viable alternative to traditional labor-intensive construction methods and takes too much time.
Mivan construction can be very economical if it is a large-scale construction. All components (beams, walls slabs, staircases, and beams) are made from concrete, so bricks can be eliminated. Mivan formwork has helped the realty sector be more efficient in assembling and faster construction, just as modular kitchens have replaced traditional ones.

What is Mivan Technology?

Mivan is a high-quality aluminum structure. developed by Mivan Company Ltd, an European construction company, and first manufactured by a Malaysian company in 1990. This formwork system is ideal for building large houses at a much faster pace. Construction speed is an essential aspect of large-scale housing projects and township projects. The “Mivan formwork method” is an intelligent construction method that has been developed by the real estate industry to address unique challenges. Many buildings are being built in Mumbai using the Mivan technology. This has been proven economical and satisfying for the Indian real estate market. It is also widely used in Europe, Asia, and the Gulf Countries. You can build large numbers of houses quickly using Mivan technology.

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Mivan Technology and its applications in India

Although Mivan technology is not widely used in India, it is popular in Europe, the Gulf, and other parts of Asia. In addition, it is being used in India to finish the most challenging government scheme, Housing for All, by 2022.[1]

Mivan Formwork

Mivan shuttering/formwork is an aluminum formwork system. It is a unique construction technique that doesn’t compromise strength or durability but is time-consuming and labor-intensive compared to traditional construction methods.

This method is ideal for large projects because it includes components, such as slabs and beams, staircases, walls, etc. Just like conventional method, in Mivan formwork, concrete is used for construction. Mivan formwork was made more accessible and faster to assemble, just as modular kitchens replaced traditional ones.

Mivan Formwork: Major components

Based on where they are used, components of Mivan Formwork can be divided into four types:

For Wall Components

Beam Side Panel, Panel for Soffit Beam.

Beam Components

Wall Panel, d. Rocker, C. Kickers, and d. Stub Pin

Deck Components

Deck Panels, Deck Prop and Deck Length. c) Soffit Height.

Other Components

Other elements besides the beam and wall are used, including exterior and interior soffit corners and wall panel edges.

Benefits of Mivan Formwork

Mivan formwork has numerous benefits:

  • It speeds up construction and produces better quality work.
  • It is lightweight, making it easier to use by labor.
  • Mivan formwork is popular in construction field because it requires very little maintenance because of its small number of joints.
  • You don’t need skilled labor to install shutters.
  • The smooth surfaces offer a natural look and don’t require plastering.
  • It is less expensive to fabricate, which means less debris.
  • Aluminum does not suffer from corrosion, so you can reuse it hundreds of times.
  • It is also resistant to seismic forces.
  • Load carrying capacity
  • Durability
  • Time saving

Work cycle

These are the critical steps in the Mivan shuttering process.

  • The first day would see vertical reinforcement bars and one side formwork for one floor.
  • The second day would see the construction of another vertical formwork side by side with the floor’s formwork.
  • The laborers fix the floor reinforcement bars and cast the slabs on the third day.
  • The laborers would remove the vertical formwork panels on the fourth day after 24 hours. The props would remain in place for almost 7 days and the floor slab formwork for 2.5 days.

Mivan Shuttering: Advantages and Disadvantages

Here are some advantages and disadvantages of Mivan Technology.

Advantages:

  • Mivan Formwork is relatively easy to do.
  • Floors can be completed faster.
  • There are fewer joints and fewer leakages.
  • Wall and slab smooth finishes
  • Low maintenance
  • More seismic resistance
  • Construction work of high quality
  • Accelerated completion
  • Plastering is unnecessary

Disadvantages:

  • Skilled labor is required for alignment maintenance.
  • It takes some time to set up the initial setup.
  • It is costly and can only be used for standard floors.
  • For alignment maintenance, skilled labor is required.
  • It is important to correctly place construction joints.
  • Leakage issues such as seepage and leakages during monsoon

Areas where Mivan Technology can be used effectively

Mivan technology is ideal for building large numbers of houses quickly and easily. This technology can also build slabs and walls using room-sized structures. This technology allows shuttering of both columns and slabs in construction. This shuttering is ideal for large rooms and floor slabs. These shutters are solid and sturdy, and they are easy to maintain.

If you need commercial real estate in Surat, Vacanza is the right place for you. Visit our website, or call us today at +91 81284 13205 to get the best commercial spaces in Surat! You can also follow us on Facebook and LinkedIn to keep up with our latest projects and offerings! We are here to transform the city!

The DREAM City project – Surat Diamond Bourse

Everyone would like to be in an office building that offers all the amenities and an environment that is pleasant to work in. It is simple. The place we work in a workplace has a direct impact on productivity. Built by PSP projects, the ‘Surat Diamond Bourse (SDB)‘ is India’s second largest diamond hub, a dream for people in the diamond industry and a remarkable junction for diamond traders and workers alike.

The Surat Diamond Bourse houses safe deposit vaults, museum and customs offices, money transfer desks, travel desks, and so much more. It also has a retail zone, auction house, and diamond club under one roof. All of this is surrounded by state-of-the-art security and amenities. The SDB is the largest office building globally with a single basement. The smart project of SDB is also known as DREAM (Diamond Research and Mercantile) City. Surat Diamond Bourse is actually a not-for-profit organization managed through Surat Diamond Bourse, a company established to facilitate creating and promoting a diamond bourse in Surat, Gujarat. Spread over 35.54 acres, with a total of an area of Sq.ft.

constructed area, which includes the offices of 4,000 national and international traders, SDB is indeed a sprawling project.

Why was Surat Diamond Bourse built?

Many objectives led to the development of SDB:

  • To promote exports, imports, and trade of diamonds, gems & jewellery from India.
  • To provide the latest infrastructure to organizations involved in the manufacturing and trading of diamonds.
  • To encourage, develop, and protect trade and commerce related to gems & jewellery, including cutting, polishing, and processing.
  • To establish and maintain the international trading center in India to help facilitate the diamond, gems & jewellery industry.
  • To establish India as an advanced and modern diamond, gems & jewellery market around the globe.

Facilities of the Surat Diamond Bourse

The Surat Diamond Bourse has multitudinous facilities that makes it unique.

Recreational Zone

The area for meetings exudes an unassuming yet timeless elegance that is in keeping with the inimitable landscaping and greenery found in the space. It is designed to reflect a relaxing luxury of a spa. This meeting area provides an elegant yet comfortable ambiance for guests and members to relax or host formal or informal meetings.

Security & Surveillance

Strategically located security lobbies throughout the building will ensure security and easy access to all areas security and safety are the top priorities. The building will be highly secured security checkpoints on campus in all exits and entrances, CCTV surveillance control rooms, a public announcement system, and scanners for under-cars on entry gates. The facility also has a digitally integrated fire protection system as per the latest security standards.

Ample Parking Space

There are 20 Lakh square feet available for vehicle parking and travel, besides the basement which is designed to be used as a parking as well. Traffic layout allows for one-way traffic on the internal road so cars, taxis, autos, service vehicles/goods, custom vehicles, and two-wheelers can move with ease. There are separate entry and exit points, which reduces congestion and eliminates/reduces potential vehicular conflict. There is also a provision for specific entry/exit points for service vehicles.

The amazing Panchtatva Landscape

Surat Diamond Bourse combines a high-density architectural design with an efficient environmental concept. Panchtatva is the center of the chakra of the Universe, according to mythological facts. When the five elements of nature – Air, Water, Fire, Earth, and Sky, are in balance, they bring peace, prosperity, happiness, and success.

Beautiful Promenade

It is refreshing to walk from one office to the other, you will find the verdure landscaping provides a relaxing experience. The atrium is lined with lush green plantations to make your journey laid-back. Moreover, the green courts offer unique recreation opportunities, with an enclosed periphery and inner areas with flora.

Monumental entrance and drop-off zone

The entrance offers a beautiful genesis for the facility with a welcoming frame. The scenic views of the landscape on either side will captivate your eyes as you drive along the well-constructed and directed roads. The drop-off area has been designed to be both functional and convenient. It also allows for easy and well-organized movement of traffic, pedestrian, increasing efficiency. There are no overlaps, and there are enough gates for entry/exit. Furthermore, the routes have been designed to reduce travel time and walking time within the premises, maximizing security and efficiency.

Tranquil Atrium

One-of-a-kind central spine corridor features a central atrium featuring elegantly designed indoor landscaping. The spine corridor’s architectural embellishments and aesthetically-designed landscaping draw attention to the building while also serving as a transit line. The grand atrium allows light to enter and creates a feeling of openness, making it glow during the day. Radiant cooling is incorporated throughout the corridor, keeping the temperature comfortable throughout the day. Moreover, each floor has well-planned green spaces and food courts that allow informal conversations and socializing.

Great Opportunity for employees taking offices in Surat Diamond!

Who doesn’t dream of living closer to work with every luxury you could imagine right next door? With  Vacanza’s latest project, ‘The Address’, right in the vicinity of offices at Surat Diamond Bourse, your dreams can turn into reality. Offering residential apartments for employees soon taking office in Surat Diamond Bourse, this is an ideal opportunity to build a home with all the amenities that define pure residential luxury. From an incorporated clubhouse and cafe for relaxing post-work to a swimming pool and a health club to keep fit. With designer landscaping and an unbeatable view, both during day and night, Vacanza delights you with the future of your dreams, just a booking away.

Green Building

The US Green Building Council (USGBC) has placed India third in its annual ranking of 10 top nations and regions to earn LEED for 2021. The list includes countries outside the United States making noteworthy strides towards healthy and sustainable building design, construction, and operation. India has certified 146 spaces and buildings to LEED, roughly 2.8 million gross surfaces of square meters (GSM). This represents a 10 percent increase in LEED-certified space in India starting in 2020.

The growth and evolution of India’s construction industry have a crucial contribution to its fight against climate change. As a result of it accounting for over 40% of India’s electricity use, energy use from buildings is growing by 8 percent each year. If current practices for building efficiency persist, buildings will be responsible for more than 70% of all emissions in 2050, posing the most significant risk to India’s green plans. So, let’s see why green buildings are so important today. But before we talk about why we need green buildings and what are their benefits, it is crucial to know what exactly is a green building

What exactly is a green building?

A green building is a building that minimizes or eliminates negative impact on the environment through its construction, design, or operation. Green buildings protect the natural resources that are precious and increase the quality of our lives.

Numerous aspects can help make a building “green’. They include:

  • Energy efficiency, water, and other resources
  • Utilization of renewable energy sources, for example, solar energy
  • Waste reduction and pollution measures, as well as the possibility of recycling and reuse
  • High quality indoor environmental air quality
  • Materials that are not toxic, ethical, and eco-friendly.
  • The consideration of the environment in the design, construction, and operation
  • The quality of life for people who live there in construction, design, and operation
  • Design that permits the ability to adapt to changes in the environment

Every building can be considered a green building, regardless of whether it’s a house or office, hospital, school, community center, or any other structure, as long as it has those features listed above.

It is also important to note that no green building should be the same. Different regions and countries possess diverse characteristics, like distinct climate conditions, distinctive customs and cultures, different kinds of buildings and ages, or a wide range of environmental, economic, and social needs—all of these influence the approach they take to green construction.

Benefits of Green Buildings

With the growing concern of our society about environmental sustainability, it’s not a surprise that green buildings continue to increase in popularity. But you might be wondering, what exactly is green design? From corporate structures to residential structures, architects discover innovative sustainable design methods to help protect our natural environment while reducing carbon emissions. Here are a few primary benefits of green buildings and green construction practices and how this trend in architecture can safeguard future generations.

·  Better indoor environment: quality of life

In terms of health and well-being, there is no doubt that our environment significantly influences our well-being. In the last few decades, designers worldwide have made considerable advancements in eco-friendly architecture that will drastically impact the inhabitants of these buildings and dramatically minimize the environmental impact buildings can have. From the interior design features such as improved lighting sources, ergonomic features, thermal conditions, and even improved air quality, those who live in or in green buildings have noticed significant improvements in their overall health and stress levels and overall well-being.

·  Reducing water use Reuse, Reduce, Refill

Another tangible benefit of sustainable construction is water efficiency. Studies have shown that green architecture can decrease the amount of water wasted through efficient plumbing fixtures and decrease the burden on water resources shared by the community. Furthermore, with the help of specially designed systems to filter water, it facilitates water recycling and allows alternative options for water sources (such as rainwater). These innovations help preserve this essential natural resource and ensure freshwater sources for the future.

·  A Sustainable and Efficient Material: Low Use for the Best Impact

The concept of upcycling has revolutionized the world of architecture to the forefront – recycling materials and reuse of resources (and even reusing old structures). Sustainable engineers, architects, eco-friendly designers, and architects benefit from their existing sources to minimize carbon footprints and conserve natural resources. By implementing sustainable practices into the design process, such as reducing waste, conserving natural resources (such as wood and water), ensuring good air quality, and reducing energy consumption, green building firms can create highly efficient structures that will stand the endurance test of time.

·  Maintain Cleanliness: Preserving Our Ecosystem

Global warming has become a significant problem for many years now, and it’s no surprise that our planet has witnessed a dramatic reduction in our natural resources. Pollution and consequent climate change have reached an alarming level, too. Sustainable architecture is not just efficient in energy use and is healthier for its inhabitants and its surroundings but also helps the environment. By reducing our dependence on non-renewable sources (fossil fuels like oil and coal), green architecture could help maintain and promote a more pristine environment.

·  Energy-efficient: Non-Renewable in comparison to. Natural Resources

Being a sustainable architect, energy efficiency is the primary aim of green building design. Building structures that draw their energy from the natural environment like the sunlight, the wind, or water can be highly beneficial, protecting the ecosystem from non-renewable energy sources (such as coal and oil). Another benefit is that non-renewable energy sources aren’t just harmful but also costly, and energy-efficient alternatives (such as solar energy in comparison to. conventional electricity) could save thousands of dollars over the life of the infrastructure.

·  Reduced Carbon Footprint Helping Save the Planet Just One Step One Time

There is an increase in companies opting to adopt eco-friendly initiatives. Based on the Environmental Protection Agency (EPA), buildings account for 30% of CO2 emissions emitted by greenhouse gases in the United States. As a result, large businesses and landlords have listened since the increasing sustainability of their buildings is an opportunity to impact society and industry positively.

·  Reduced Operating Cost and Maintenance Traditional and. Green

One of the most significant advantages of green buildings is their low maintenance costs using specially engineered design elements to reduce energy consumption, water and energy bills for every person living there. These structures are efficient and could save both residential and commercial owners ton of money. While the cost for construction owners to construct such structures could be initially more than traditional green forms of architecture, their price will be recovered exponentially in the long run.

If you need commercial real estate in Surat, Vacanza is the right place for you. Visit our website, or call us today at +91 81284 13205 to get the best commercial spaces in Surat! You can also follow us on Facebook and LinkedIn to keep up with our latest projects and offerings! We are here to transform the city!

The ultimate customer guide to corporate lease Real Estate Commercial projects.

corporate lease
corporate lease

A corporate lease is a lease that covers one or several commercial spaces, under which, a business owner gains the right to operate his/her business from the leased space as per pre-agreed terms.

The commercial real estate leasing isn’t only about finding a space to run your business. It’s an investment into your future. Finding the right place at the right price with the most favorable terms will help your office become more efficient, increase the retention of your employees, and make your business attractive to potential customers while saving costs.

However, it’s not all about the location, asking price, or square feet. The amount of space you have available along with the terms and conditions of your commercial lease could impact your business in numerous ways, for example:

      • Imposing (or avoiding) unpredictable costs like maintenance.
      • The restriction of the ability to add space when you are required to upgrade.
      • Facilitating (or hindering) the ability of your company to perform necessary building of custom infrastructure, for example, office space partitions, server rooms, to name a few.

Whether you’re leasing warehouse space, an office co-working space, or another type of commercial area, we’ll show you what you should anticipate from the process of corporate lease and how to ensure that you get the most efficient space.


Corporate lease can be a bit complicated. But our suggestions will help navigate the legal jargon effortlessly.


It is essential to conduct research before determining the best corporate lease. Mainly, you should look into the landlord, owner of the building regulations, zoning laws and environmental regulations, and nuisance law.

Be aware of the amount you’ll need to pay, the exact amount you’re paying, and how much your rent will rise every year. Certain leases have additional payments (e.g., maintenance, insurance, or utilities), and others combine all your costs into one lump sum each month.

Set out the procedure for how you will transfer your lease if your company closes or you relocate. Two possible scenarios are the assignment of lease that allows a different business owner to assume the lease and to sublet ultimately.


This guide is intended for entrepreneurs and business owners who want to lease commercial space and make sure they know the terms of the lease.


The difference between Corporate Leasing and Corporate Rent.

The difference between Corporate Leasing and Corporate Rent. 

Corporate Leasing means a contract between two parties, in which one of them lets the other manage this asset during a specific time frame but not purchase it. It’s not like renting, but it is an alternative to it.

Corporate Rent is a contract for a short period between the landlord and the tenant that requires the tenant to pay rent for the use of a property like a building, land, automobile, or other. The landlord owns that.

Here are some significant differences between rent and lease:

1.Leasing is a contract between a lessor and lessee, wherein the lessee purchases the asset and lets the lessee use it for a specific time. Renting permits another party to utilize the property for a limited duration in exchange for a predetermined amount.
2. The lease term is lengthy, while rent is short-term.
3. There are two parties to lease agreements, i.e., the lessee and the lessor. In contrast, the tenant and landlord are the parties to be considered in the event of renting.
4. The tenant pays the lease rental to the lessor, while the tenant pays the landlord’s rent.
5. Repairs and maintenance are the lessee’s responsibility when there’s the finance lease; however, for operating leases, the expenses are the lessee’s responsibility. In a rent agreement, in contrast, the landlord is responsible for the costs of maintenance and repairs for the asset.
6. The conditions and terms of the lease are not altered until the lease expires. Instead of rental, the tenant has the right to modify lease terms or conditions contract before giving notice before the tenant.
7. The rental contract can be renewed automatically; however, it isn’t the case for a lease.
8. After the expiration of the lease, the lessee has the option to purchase the property at a residual cost. This option, however, is not offered for rent

Corporate leasing in India: Important terms to be aware of.

 

While this list doesn’t cover every term you might see on corporate lease agreements; however, it summarizes the terms you’re most likely to encounter.

Base rent or the amount of rental.

This amount is calculated using the area of the property. Check to ensure that the landlord’s figure is the usable area. This is the measure of space reserved for the business tenant in the case of shared spaces.

The rent increases.

The percentage of your total rent generally determines rent increases, but that may fluctuate. You may negotiate with your landlord to limit rent increases.

The security deposit.

This amount the lessor will hold the space until the lease is signed. The amount must be mentioned in advance as well in lease agreements.

Length of contract.

Corporate leases typically range from three to five years because commercial landlords favor longer lease conditions. The lease agreement usually defines the start and the end dates for the lease.

Improvements.

This part of the corporate lease agreement sets out the kinds of upgrades and enhancements that could be done to the property and who is accountable for the cost. The bottom line – be sure that you know the terms and conditions of commercial lease contracts and feel at ease before signing them.

Lease grant.

This clause says that the landlord will hand his property to the tenant after all the terms (e.g., payment of the security fee) are met, and the tenant has accepted possession of the premises from the landlord.

Start date.

This is the date when the tenant can take over the property. It is often defined as the date on which the tenant is responsible for paying rent and maintenance of the property rental.

Extension.

Both parties can accept an agreement extension in writing, and the parties must sign the extension.

The late charge.

If the tenant is late in paying rent, they’ll incur the late fee defined in the agreement for leases on commercial property. It can be a fixed fee that is a fraction of monthly rent.

Taxes

This section outlines the tax burdens associated with your property (property taxes or other related taxes) and who’s accountable for their payment. There might be subtopics like a contest of Taxes (the tenant can contest the amount of real or personal property taxes they are accountable to pay) and Payment of Ordinance Assessments (the tenant typically pays all assessments of ordinary value, which are mandatory, as well as extraordinary assessed, which can be disputed) and changes to Method for Taxation.

Obligation to fix.

This section states what kind of repairs the landlord is required to carry out – for example, defects in the property or materials crucial for the proper operation, electrical failure, to name a few. The section also details the repairs tenants are accountable for.

Permits.

Both parties must get all necessary permits to carry out repairs or improvements at the rental location. The terms used in these covenants differ for the landlord and tenant as each has its collection of agreements. For instance, a covenant could stipulate that the tenant is obligated to be able to afford rent, even if the landlord fails to adhere to certain obligations according to the lease.

Indemnity for tenants.

This clause essentially takes away all responsibility from the tenant in case of any injury, loss, claim or loss, claim, or damages, unless such circumstances are the direct result of intentional acts or omissions or negligence by the landlord.

Rent abatement/adjustment.

This section states if the rent will be adjusted or eliminated in the event of property damage from a fire or other natural disaster.

Condemnation.

This clause is frequently overlooked, yet it’s vital. It governs what happens when you are forced to take the property away from an owner by a government agency for public use, whether through condemnation or eminent domain.

Option to Purchase.

This clause states that, at any point throughout the tenure, the tenant will have the option of purchasing the property at an agreed price. This clause isn’t a requirement, but it’s not bad adding it. It could also say that the tenant doesn’t be entitled to buy the property within the lease terms. In any case, it’s best to put it written down.

Set a Budget

What is the maximum amount you are able to afford for rent? Most businesses are operating under the 30-30-30 rule. Although this number isn’t fixed in stone and may differ based on the kind of business, it’s an excellent start for any new business which don’t have a couple of years’ worth of specific expenditures that they can refer to.
Assume that 30 percent of your earnings will be put towards Cost-of-Goods (products used to create a final product and then sells it), and 30% of the money will be used on Overhead (rent and utilities, corporate lease charges, payroll, taxes, etc.) And, in an ideal scenario, the remaining 30% would be put aside as profit. From this figure, you can identify your overhead costs and what percentage of that 30 percent could be allocated to rent (perhaps in 5 to 10% of your projected income).

Determine how much space you need before even thinking about corporate lease.

The amount of space you will need to run your business today and the years to come must be considered before looking for space.
Start by taking measurements of how much square footage is in your current area. Do you require more or less space than you do right now? Choose a suitable range for the parameters you are looking for (i.e., 1,000-2,500 SqFt; 5,000-10,000 SqFt; 20,000-50,000 SqFt).
When looking for a new location or selling a service or product to the public, research the location and determine the potential customers you could be targeting. Location is everything for a small-scale business to succeed; so, when searching for the perfect properties, make sure you take the time to find the ideal location for your company. This process might take up to a year or longer, so ensure you are prepared if the end of your lease is near.

Find out more information about the property owner and the landlord.

Sometimes, the landlord you are directly dealing with could not be the actual owner of the building. Whatever the case, learn everything you can about your building owner and the landlord. It’s a business partnership that you’re entering with them, so ensure that you know who they are, their financial status, and if they have the right to collect payments for the space that you are trying to lease.
In certain cases, for instance, the landlord who is unable to pay rent payments to the owner of the building may be forced to leave even if the company has delivered on time for each payment. This is just one instance of how the relationship between landlord, tenant, and the building owner can be strained.

Map a Search Area

Make a list of cities and towns that you can use to narrow your search for commercial spaces. Choosing where you would like your company to be and where it could be located is not always identical.
There are a variety of aspects to take into consideration when choosing the search area. For example, the customer service area can determine location, the number of similar businesses located in the vicinity, and the kind and size of space you’ll need or the type of use the city or town will permit.

Find out about laws and the environment.

The most significant advantage of signing a corporate lease is the capacity to run your business to the fullest extent once you have opened your doors. Most leases include extensive provisions regarding noise, smells, and equipment.

It’s also crucial to learn basic environmental laws that apply to the property before signing any corporate lease as landlords are often in violation of these laws and may be used to sabotage your company.

Contact a commercial real estate broker to get help with corporate lease

If you’ve identified the kind of space, you want you can begin your search for a professional commercial real estate broker or an agent.

A commercial broker or an agent can be described as an expert within the commercial property with ample knowledge of corporate lease laws and current property prices. In contrast to a residential broker, who might know about the housing market, commercial brokers have experience and knowledge of the retail real estate market and consequently, they can be quite different.
As an accountant for tax purposes, is up-to-date with the latest tax laws, and is equipped with the newest software for processing tax returns, commercial real estate brokers don’t just keep track of the market. They also contribute and pay for databases and software (exclusively commercial), which other brokers do not.

Commercial real estate agents or developers like Vacanza can assist prospective tenants in finding suitable properties for their needs. Property owners employ brokers, and, most of the time, they are compensated an amount for broker fees by the owners.

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So, what is this means to entrepreneurs looking for a space to lease? 


This means that in the majority of cases, they can reap the benefits of working with a skilled, knowledgeable commercial real estate agent who understands the market, understands your business needs and meets them.

Corporate lease in a nutshell.

There are some critical aspects of corporate lease to be aware of when looking over your lease. First, the structure of your rent is likely the most fundamental and crucial element of any lease. By knowing how much you will pay each month and how much your rent is expected to rise each year, you’ll be able to establish budgets and understand whether you can stay operating in the new area.

Lease terms are crucial. Take a look at short-term and long-term leases. Long-term leases are an excellent investment when opening your company in a new or growing region. In contrast, short-term leases allow you the option of moving locations or shutting down your business if it fails to perform the way you had hoped.

Concerning payment structure and terms, be aware of what you’re charged for every month. Talk the prospective landlord about how these expenses will be to be paid:

  • Insurance
  • Taxes on property
  •  Maintenance (both exterior and interior)
  • Repairs
  • Security
  • Parking
  • The local law (noise or smell)
  •  Utilities (water, gas, electric)
  •  Modifications (whether you can alter the exterior or the interior of your room)

Once you’ve established your initial pricing and term structure, it’s time to delve into the more obscure specifics. Although your lease may differ by state, here are helpful examples of laws you should be aware of before signing an agreement:

Transfer structure: Determine how your lease is transferred if you decide to vacate the premises or your company closes. There are typically two transfer methods: 1) Assigning the lease and 2) Subletting. The lease is assigned, which means the lease in its entirety is transferred to the new tenant. Subletting occurs when a current tenant holds their title on the lease but receives a payment from the new tenant and transfers the money over to the landlord. It is common to obtain prior written consent before the lease transfer in both situations. This is a crucial element of your lease to work out.

  •  Personal risk: It is possible to provide personal guarantees when signing the commercial lease in certain situations. You’re personally responsible for lease-related issues even though your business fails to pay.

 

  • Rent held over: Holdover rent is a rental rise when a tenant remains after the corporate lease expires. Often when companies are moving offices in the process, they are forced to stay longer than the lease permits when the new lease is being negotiated. In many cases, landlords have a clause stating that the business is responsible for 200% of their regular rent payments per month. Therefore, if you go through your lease and do not pay, you could spend a huge chunk of your profits as a overstay rent. It is suggested negotiating this point to a level of around 125% of the original rent amount.
  • Non-disturbance agreements: The company is still evicted even if you’re paying all your payments in many instances. By signing a non-disturbance arrangement in the event of this happening, you can stay in the building and pay the entity that took over your tenant’s property.

If you need a commercial real estate in Surat, Vacanza is the right place for you. Visit our website, or call us today at +91 81284 13205 to get the best commercial spaces in Surat! You can also follow us on Facebook and LinkedIn to keep up with our latest projects and offerings! We are here to transform the city!