Office space in Gurgaon is concentrated in a small number of corridors, and its value rests on leasing demand rather than on the specification of the unit itself.
Building grade determines which occupiers a property can attract, and occupier quality determines how stable the rental income is. A Grade A building with an established corporate tenant on a long lease carries a different risk profile from a comparable rate in a building that turns over tenants every eighteen months. Rate per sq ft on its own tells you almost nothing.
Ask what the current vacancy is across comparable stock on the same corridor, how long units typically sit between tenants, and what the fit out obligation falls to. Also establish who manages the building, because management quality is what preserves grade over time.
Yields depend on the corridor, the building grade and the tenant. They should be assessed asset by asset rather than as a market average.
They carry different risks. Office leases are longer and more standardised. Retail is shorter, more volatile and more dependent on footfall.
A classification covering specification, facilities and management standard. It affects which tenants a building can attract.