Commercial property for sale in Gurgaon with existing tenants appeals to investors who want rental income from day one. Pre-leased offices, tenanted shops and leased warehouses can offer immediate cash flow, but their value depends on the lease, the tenant and the property’s paperwork. A tenanted property is only as good as the agreement and the business behind the rent.
This guide explains the due diligence buyers should do before investing. It is general information; consult a lawyer and chartered accountant before buying. Rental income is never guaranteed, and tenants can leave or default.
Considering a tenanted property?
Tell us the property and we will help gather leases and records for review, usually within one working day.
What you are buying
When you buy a tenanted property, you usually take over the existing lease. Its rent, escalation, lock-in, deposit and exit terms continue with you as the new landlord, subject to the agreement.
Lease review
| Term | What to check |
|---|---|
| Rent and escalation | Current rent and how it rises |
| Lease term and lock-in | How long the tenant is committed |
| Security deposit | Amount and transfer to you |
| Maintenance responsibilities | Who pays common charges and repairs |
| Exit and renewal | Tenant’s rights to leave or renew |
| Permitted use | What the tenant can use the property for |
| Registration | Whether the lease is registered |
Tenant checks
Look at the tenant’s business, financial stability, payment history and how long they have occupied the property. A well-established tenant with a long lock-in is usually lower risk than a new business with a short lease.
Rent records
Ask for bank statements or receipts showing rent received over a meaningful period. Confirm that rent is paid on time and in full.
Read the lease, not the brochure
Ask us to highlight lock-in, escalation and exit terms in the existing lease.
Property documents
Verify title, approvals, occupation certificate, permitted use, property tax and no-dues. Confirm that the property’s approved use matches the tenant’s business.
Security deposit transfer
The tenant’s security deposit is usually refundable at lease end. Agree with the seller how the deposit will be transferred or adjusted in the price.
Vacancy risk
Consider what happens if the tenant leaves. How easily could you re-let the property, and at what rent? Check vacancy levels and demand in the area.
Costs and returns
Rental yield depends on rent, purchase price and costs such as maintenance, property tax, insurance and vacancy. Calculate net yield after costs, and remember that returns are not guaranteed.
Taxes
Rental income is taxable, and GST may apply to commercial rent in some cases. Get advice from a chartered accountant.
Attornment
After purchase, the tenant usually acknowledges the new landlord through a letter or agreement. Ask your lawyer about the process.
Questions to ask the seller
- How long has the tenant been in the property?
- What is the lock-in and remaining term?
- Has rent always been paid on time?
- Is the lease registered?
- How will the deposit be handled?
Red flags
- Rent well above market levels
- Short remaining lock-in
- Unregistered or unclear leases
- Tenant’s business at odds with permitted use
- Missing rent records
Who this guide suits
It suits investors buying pre-leased offices, tenanted shops and leased industrial or warehouse properties.
Market rent comparison
Compare the existing rent with current market rents for similar properties nearby. If the rent is well above market, it may fall when the lease ends or the tenant renegotiates. If it is below market, there may be room to increase it at renewal.
Lease expiry profile
For buildings with several tenants, check when each lease expires. Many leases ending at the same time increases vacancy risk.
Condition of the property
Inspect the property’s condition, including services, roof, lifts and common areas. Major repairs can reduce returns.
Read more
Explore our guides to pre-leased office space for sale, tenanted commercial shops for sale and commercial property with existing rental income. Our commercial property for sale page lists current options.
How we help
Tell us the tenanted property you are considering. We will help gather leases, rent records and documents for your lawyer and accountant, and highlight key risks before you invest.
Review a tenanted property
Share the tenanted property you are considering. We will help you gather leases, rent records and documents for due diligence.
Frequently asked questions
What is a tenanted commercial property?
A property sold with an existing tenant and lease in place.
Do I take over the existing lease?
Usually yes, subject to the agreement.
What lease terms matter most?
Rent, escalation, lock-in, deposit, maintenance, exit, permitted use and registration.
How do I judge the tenant?
Look at their business, stability, payment history and occupancy period.
Should I see rent records?
Yes, bank statements or receipts over a meaningful period.
What happens to the security deposit?
It is usually transferred or adjusted in the price.
Is rental income guaranteed?
No. Tenants can leave or default.
What is attornment?
The tenant's acknowledgement of the new landlord after sale.
What are red flags?
Above-market rent, short lock-in, unclear leases and missing records.
Can you help review a tenanted property?
Yes. We gather leases and records for your advisers.
Should the rent match the market?
Compare it with market rents. Above-market rent may fall at renewal; below-market rent may rise.
What is a lease expiry profile?
When each tenant's lease ends. Many ending together increases vacancy risk.
Should I inspect a tenanted property?
Yes, including services, roof, lifts and common areas.
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