Investor Questions

What is a pre-leased commercial property and how does it work?

A pre-leased commercial property is one that already has an active tenant paying rent at the time of purchase. When you buy it, you inherit the existing lease agreement, the rental income, and the tenant relationship. You start earning from day one — making it India's most predictable commercial real estate investment format.

What rental yield can I expect from pre-leased properties in Surat?

Pre-leased commercial properties in Surat typically deliver 6–9% annual rental yield (gross). Properties with corporate or branded tenants (banks, pharmacy chains, telecom retailers) on longer lock-ins command yields of 6–7.5%. Properties with smaller businesses in high-demand localities may offer 7.5–9%. Always compare yield against the lock-in remaining, escalation clause, and tenant creditworthiness.

What are the risks of investing in pre-leased commercial property?

Key risks include: tenant vacating after the lock-in ends (vacancy period with no income), rental re-negotiation at below-expected rates post-lock-in, property depreciation if the locality loses commercial appeal, and over-pricing relative to rental income (low yield). Mitigate risks by choosing strong tenants, prime localities, and properties with long remaining lock-in periods.

How do I verify the authenticity of a pre-leased property?

Before purchasing a pre-leased property, verify: the registered Leave & License agreement (check registration stamp), actual rent receipts for the last 12 months, tenant's GST filing status confirming active business, title clearance report from a lawyer, encumbrance certificate, and building plan approval. Ukani Property conducts complete due diligence before listing any pre-leased asset.