Negotiating Office Space in Mumbai
Are you and your firm looking to find an office space for rent in Mumbai? Well, this blog post goes thru the process of negotiating price when renting an office in Mumbai and surely will be useful especially to those who have minimal experience in this domain.
The first thing to know, is that practically every office space for rent in Mumbai is negotiable. And if you want to put a number to it, we’d say over 99.9% of landlords would be willing to come down from their asking price of their Mumbai office. And why is this?
Well, it’s certainly part of Indian culture to negotiate for pretty much everything and negotiating on price for an office space on rent in Mumbai is no different. With that said, landlords and developers offer their Mumbai office spaces for rent at higher rates than the going rates as they are well aware that they will be negotiated down by the future tenants. Now the question is how much is one willing to negotiated down… there is no straight answer, but 5% is usually very doable and 10% often times is as well, but once you start entering the teens, it gets a bit more difficult to pull off the negotiation for that office space in Mumbai your firm has its eye on – it is possible nevertheless.
On a side note… as a property site, Jagaha.com must post the price that is given to us by the Mumbai real estate developer or owner. It is important to know that nearly all prices on our property site will be negotiable given the above.
In addition to just the monthly price of the office space rentals in Mumbai, there are other components as well that can affect one’s monthly rent, namely: a deposit given (which is generally 3 months rent but can be as low as one month and as much as a full year’s rent) and advance rent can be given.
The higher the deposit given for your next office space for rent in Mumbai, the more wiggle room you and your company will have in negotiating a lower monthly rate. Do note, that in Mumbai commercial real estate, the deposit amounts do no accrue any interest. However, compared to other places such as the United States, it’s more common practice for the tenant to get back the full amount of the deposit back. There will almost always be a deposit needed for your traditional office on rent in Mumbai.
Giving the owner of office property in Mumbai advanced rent is another way to reduce one’s monthly rent payments. Advance rent can be given quarterly, semi-annually or even annually. Similar to a deposit, the more money you give the office space owner the more wiggle room you will have on reducing the monthly rent for your office space in Mumbai.
And the last strategy aside from the straight negotiation of the monthly rent, the deposit and advanced rental payments for your next office on rent in Mumbai, is to sign a multi-year lock in deal – again similar to the advanced rent and deposit, the more years you lock in for, the better leverage your firm will have in negotiating a lower rental price for your Mumbai office.
We hope the above helps you prepare for negotiation with your landlord for that office space in Mumbai of your dreams. We have a full team of Mumbai commercial real estate professionals that can help you thru the entire process from shortlisting properties in Mumbai from our property site to negotiation to closing the deal.
Thank you in advance for choosing our commercial property site, Jagaha.com.
TAGS: #CommercialOfficeSpacesinMumbai #OfficeSpaceinMumbai #PriceNegotiation #RealEstateMumbai