A pre-leased commercial property is sold with an existing tenant or lease arrangement, which can make it attractive to buyers seeking income from day one. The phrase 'assured rent', however, does not make the investment risk-free. Returns depend on the tenant’s actual payments, lease enforceability, expenses, capital cost and the chance of vacancy. Kolkata offices and retail units must be assessed individually; a single advertised yield cannot represent the full market.
## Verify that the tenancy exists and pays Ask for the executed lease, amendments, rent receipts, bank statements or certified ledger extracts, security-deposit record and any defaults or notices. Confirm the exact legal name of the tenant, permitted business use, authorised signatories, possession and the spaces actually included. Where the lease is subject to registration, stamp duty or other formalities, request proof of compliance. A letter of intent or an unsigned proposed lease is not equivalent to current contractual rental income.
## Read the lease's economic terms Record base rent, escalation date, maintenance allocation, taxes, utilities, fit-out responsibility, lock-in period, break clause, renewal options and notice period. Determine who holds the security deposit and how it will be transferred or adjusted at completion. A large deposit is a liability to account for, not simply extra purchase income. Review the lease to see whether assignment or transfer of ownership triggers notice or consent requirements, and whether rental payments must be redirected through an agreed process.
## Calculate net, not headline, yield A basic gross yield divides annual contractual rent by acquisition cost. Net yield also accounts for realistic vacancy provisions, non-recoverable maintenance, property tax, insurance, management and other owner-paid expenses. Include stamp duty, registration and transaction costs in the denominator. For illustration only, annual rent of ₹6 lakh on an all-in cost of ₹1 crore is a 6% gross ratio before expenses, taxes and vacancies; it is not a promise of net return or future rent growth. Stress-test several months without rent.
## Check property title and approved use Review the full conveyance and encumbrance position, sanctioned plan, occupancy or completion evidence where applicable, fire clearances relevant to the business, property-tax assessment and permitted commercial use. Check whether the unit is freehold, leasehold or subject to development restrictions. Verify that any mezzanine, terrace enclosure or fit-out was authorised. A known tenant does not cure an unlawful building alteration or title defect. Obtain an independent legal and technical opinion before signing.
## Understand tenant and location risk Assess the tenant's financial strength and business dependence on that particular location without assuming the brand name guarantees solvency. Office demand can change with flexible working, while retail demand depends on frontage, catchment, parking and footfall. Examine competing space and the practicality of reletting the unit. A high yield may compensate for an unusually short lease, ageing infrastructure or location challenges. Ask for evidence of actual comparable rents rather than projected appreciation figures.
