Nobody warns you about how complicated an office lease can get until you are already in one. I have sat with clients who signed something without fully reading it and sorting that out later is never fun. So here is what you need to look at before anything gets signed.
1. The Lock In Period
Most office leases in Delhi NCR are structured for 3, 5, or 9 years, with a typical lock in period of around 3 years. This means even if you want to move out you will have to pay a penalty or the remaining rent. Read the clause properly and if needed read it twice. I am not exaggerating here.
2. Rent Escalation
Every three years your rent goes up by 15%. That number feels fine in year one. Go calculate what it looks like in year seven and then decide. If there is no cap on the escalation, get one added before you put your signature down.
3. Security Deposit
Six months of rent sitting with someone else for years. Ask what conditions allow them to hold it back. The least you should get in return is clarity and if you are getting vague answers, that itself tells you something is going to go wrong.
4. CAM Charges
People always mess up with this one. You are not just paying rent. You are also paying for maintenance, security, utilities. Before you sign the office lease, always ask for a full breakdown of all these things before you agree to anything. What looks like an affordable rent can look very different once CAM is added on top.
5. Occupancy Certificate
Either the building has one or it does not. If it does not, you should not be moving in. Do not accept “it is in process” as an answer. This is non negotiable.
6. Right of First Refusal
If your business grows and you need more space, this clause gives you first priority on whatever is available in the building. Not every landlord puts this in by default. Ask for it anyway.
7. Sub Leasing
What happens if you end up with more space than you need a couple of years in? Can you sub lease it? A lot of agreements in Delhi NCR say no by default. Find this out before you are paying for desks nobody is sitting at.
8. Fire and Safety
The active Fire NOC and National Building Code compliance both need to be in place. Not optional, not in process, actually in place.
9. Fit Out Costs
Whatever you spend setting the office up does not come back when you leave. Divide that number across your full lease term. Your real monthly cost per seat might surprise you.
10. The Landlord
Honestly the more I talk about this one it is still not enough and you will thank me later. The landlord matters a lot. How flexible they are, how keen they are to actually resolve issues when something goes wrong. A landlord who stops responding after you have moved in is one of the most common complaints I hear from people. Before you sign any office lease, talk to tenants already in the building before you decide. A great space with a difficult landlord is still a bad deal.
How Hub and Oak Can Help
At Hub and Oak, office leasing in Delhi NCR is what we do every day. We work with startups finding their first office, growing companies looking to relocate and established businesses making long term commitments. We have been in a lot of these conversations and we know exactly what to look for and what to push back on before any office lease gets signed.
We are not just here to show you spaces. We are here to make sure the deal works in your favour. If you are looking at office spaces in Delhi NCR right now, talk to us before you commit. That conversation is a lot easier to have before signing than after.