By Soniya Gaonkar on Apr 29, 2022 6:34:23 PM
Commercial real estate has significantly evolved over the years and transcended the typical buy and sale transactions. Today, people demand quick and optimized returns from their properties and hence, look for properties that do not make them wait for returns. A popular alternative here is investing in a pre-leased luxury office space in Pune. Here's more to the concept of pre-leased commercial property and how it can benefit you as the property's buyer.
What is a Pre-Leased Commercial Property
As the name implies, a pre-leased commercial property is the one that the developer has already leased to a tenant before selling it in the market. After the property is sold, the lease is passed to the new owner of the property, and then he starts receiving lease rentals for it
5 Advantages of Pre-Leased Luxury Office Spaces in Pune
Investing in a pre-leased property proves beneficial in many ways. It is a kind of secure investment where the buyer does not have to wait or keep wondering about the property's fate, as he already has someone who will reap returns for his investment. Let's zoom into some of the benefits of pre-leased luxury offices.
Buyers Don't Have to Search for a Tenant.
Often, many buyers are apprehensive about investing in a commercial property, as they fear the property remaining idle, with no takers for it. However, a pre-leased property eliminates these fears, as it is already leased and is already generating returns for the owner. So, buyers don't have to search for tenants or spend money listing the property or hire a realtor to do it for them. In other words, pre-leased luxury office space or commercial properties in Pune do not have any waiting period.
Fixed and Regular Rental Income
While buying a pre-leased commercial property, the lease is transferred to the property's new owner. So, the rental income starts from day one. Accordingly, the buyer gets a fixed and regular rental income every month, thus making such properties a better investment proposal.
Low-Interest Term Loan
As the property's buyer or, say, the lessor, you can get a low-interest term loan against the pre-leased property's rental income. Rental discounting enables you to raise cash money depending on the discount value of the rentals and the underlying worth of the property.
Many real estate properties have limited liquidity, as selling them may take months. But that's not the case with pre-leased luxury offices. They provide consistent rental revenue and therefore prove to be an investment with higher liquidity.
Incremental Rent and Better Property Appreciation
Another concern that confronts the buyers of pre-leased properties is rent increment. It is because they fear their returns would remain the same throughout the duration of the initially signed lease agreement. But ideally, that shouldn't be the case, as lease renewals also provide periodic rental increases.
So, a 15 percent increase every three years can mean good money, depending on the existing lease amount that the tenant is paying.
Additionally, pre-leased properties also enjoy a better capital appreciation than vacant properties. People with a longer investment timeframe can benefit even more from the capital appreciation of the property.
Get Luxury Commercial Spaces in Pune at Kohinoor World Towers
Located between Pimpri and Chinchwad near Pune, Kohinoor World Towers isn't just another commercial complex but a significant upcoming landmark across Pune's ever-evolving and rapidly-expanding business horizon. KWT features a range of multi-sized luxury office spaces and several state-of-the-art amenities, coupled with high business potential and a strategic location that makes it a hot investment destination.