Negotiate from a shortlist, not from a single building
Landlords price against your alternatives. Visit at least two or three comparable buildings in the micro-market, ask each for written terms, and keep the options open until the lease is signed. A single building with no alternative is a weak position, however good the rate looks.
1. Fix the area first
Rent is charged on an area, so the area definition matters as much as the rate. Ask for:
- The carpet area, and the chargeable or saleable area the rent will apply to.
- The loading factor between them, and how it was derived.
- A measurement or joint verification clause, so the area can be checked after handover.
2. Compare total cost over the term
Put every offer in a simple model: rent, escalation, maintenance, parking and tax over the full term, less any rent-free period and fit-out support. Two offers with the same headline rate can differ by a wide margin once these are included.
3. Escalation
Ask how much, how often and on what base. A fixed percentage on a set date is predictable; escalation tied to a formula or market review is not. Check that the escalated rent is the one the deposit and any other charges are based on.
4. Rent-free period and fit-out support
A rent-free period for fit-out is common in new leases. Ask for it to be written as a defined period from a stated date, and ask whether it counts against the lock-in. Where the landlord will contribute to fit-out, confirm the amount, what it covers and when it is paid.
5. Maintenance and common area charges
Get the definition in writing: what is included, how it is calculated, whether it is capped, and how increases are justified. Check the area it is charged on and whether any landlord capital expenditure can be passed through.
6. Parking and other add-ons
Confirm the number of parking slots, whether they are covered, the charge per slot, and whether the charge escalates. Ask about signage, access hours, backup power and any charges for after-hours air conditioning.
7. Lock-in, notice and exit
The lock-in and notice period decide your flexibility. If your headcount may change, trade rent for flexibility: a shorter lock-in, a partial surrender right, or an expansion option on adjacent space can be worth more than a small cut in the rate.
8. Deposit, compliance and paperwork
Agree the deposit in months of rent, the refund timeline and the permitted deductions. Ask for the building's Occupancy Certificate and fire clearances before signing. A lease longer than one year generally needs registration with stamp duty payable, and GST and TDS may apply to rent, so confirm the current position with your lawyer and tax advisor.
This guide is general information and not legal or tax advice.
Frequently asked
What should we negotiate besides the rent per square foot?
Area and loading, escalation, rent-free period, fit-out support, maintenance charges, parking, lock-in and exit, and the deposit. Together these usually matter more than a small change in the headline rate.
What is the difference between carpet area and chargeable area?
Carpet area is the usable floor area inside the premises. Chargeable or saleable area adds a share of common areas through a loading factor. Rent is charged on the area the lease specifies, so ask for both figures and how the loading was worked out.
Can a lock-in be negotiated?
Yes. Length of lock-in, notice period, exit penalty and any partial surrender right are all negotiable, and they are often worth more to a growing or uncertain team than a lower rate.
Related: Leasing & Tenant Representation, Mumbai micro-markets, how we work.
