Office Space For Rent - Understanding Blend And Extend Office Leasesby Rajat S G. Be Professional
If you have been looking to rent commercial office space in Dwarka and elsewhere in Delhi, you must have heard the term blend and extended office leases. In this following article, you will learn not only about the term but also why it is the best way to go for furnished office for rent in delhi.
What is Blend and Extend Office leases?
Blend and Extend Office leases help tenants to increase their remaining lease term, which is generally one to three years, while negotiating the current rental rate into a blended one for the extended period. For example, say, the rental rate for your office space in west delhi is now Rs 1000 per square foot and you have 30 months left on your lease. But in the meantime, the rent rate has dropped to Rs 700 in your locality; hence when you go for blend and extend lease for 24 months more, you can negotiate the rent rate to be Rs 850 for that period. That way, both you and your landlord save money. The other option is to divide the remaining plus the extended period into two parts; in the first, the rent comes down to the new rate while it goes back to the present rate in the next half.
Why both renters and landlords prefer Blend and Extend Office leases?
Renters prefer this kind of office leases because it saves them money for the remaining lease period, and they have a favourable rent for the extended period. Plus, the hassle of looking for a newly business space for lease in Dwarka is also taken care of. The landlords like it because it saves the value of the property and they get rent that are higher than the prevalent rent rate of the area in the coming future.
Why is Blend and Extend Office leases becoming popular in West Delhi and elsewhere?
Due to the current situation, the economy has taken quite a hit. This slowdown is not going to recover in coming months, so every business is trying to limit their budget. The real estate has been in a slump for some time now, and hence negotiating a good blend and extend office lease now is the perfect solution. This kind of lease, as pointed before, helps both the renter and the landlord.
What are the other benefits of blend and extend office leases?
One more benefits this kind of lease has for landlord and renter is when the renter is looking forward to extending their office space. If there is just a year left for the rent to expire, the landlord may not look forward to such an investment in extending the office space. With this kind of lease, the renter can negotiate to invest from their own end into the improvement of the office space in exchange of the landlord extending the lease with a competitive blended rent price.
So, if your lease is nearly over and you are thinking about looking at commercial office space for lease in Dwarka, look at your present office lease and see if you can go for a blend and extend lease with your current landlord.
Created on Jun 4th 2020 14:40. Viewed 74 times.