A commercial property is leased or rented by a business for carrying on its normal business operations in that property. It helps in the lessee's preservation of working capital and avoids heavy expenditures in purchasing properties or even other infrastructure. Simply put, this aims at minimum investment for maximum output and profit.

Companies will have to bear the cost of owning a property as a capital allowance, if it goes purchasing one instead of leasing it. Businesses leasing a property can easily deduct the lease amount from the net profits and have tax advantage. With a little interest going to the lessor from the lessee and an initial deposit, the option of leasing a commercial property holds more advantages.

Leasing a commercial property involves some paperwork, which holds the terms of the contract between the two parties. The contract is also legally binding on the lessee as well as the lessor and any term violated can lead to various legal and monetary penalties. Before entering into a leasing contract with the owner of the property, the business owners must ask a few questions.

Can the leasing period support my business's growth needs? Are there any obligations to be met that can otherwise be harmful for my business? What is the price to upkeep the property and the important facilities?

Most of the leasing contracts are for a fixed term that has been predetermined mutually by both the parties. There may arise some situations where one or both the parties would like to break this clause and terminate the leasing contract before the agreed period. Adding this term to the contract will give a sense of flexibility, but still based on certain conditions.

Deciding about a commercial property for lease will also include many more considerations before you just sign the agreement documents. If you have liked the answers to your above questions, you can further continue with the same real estate consultant with who you are currently negotiating. You must scrutinize all the paper work and documents prepared by the consultant and make sure every term to the contract has been mentioned as mutually decided. This minimizes the misunderstandings and confusion.

Real Estate in India cannot be predicted as it observers both profit also loss from time to time. But it cannot be denied that it attracts main players dealing in developing residential properties and commercial properties. From foreign to national builders, all see profit in buying, selling and developing of property in India.

One of the reasons why the foreign developers are venturing into the selling and buying of Indian properties is that with the advancement in globalization, India too has opened doors for numerous international real estate developers. However, it should not be unnoticed that even the builders and developers back home like JK Developers, Raheja Developers, BPTP, AMR Builder, and ARN Infrastructure are not left behind in the race.

There are lots of MNCs that have ventured out their services in the last decades. These companies make sure that their infrastructure should match the level similar to the international standards. So, as a reply to their demands, Indian real estate developers and builders are thoroughly studying the environment and structure of the commercial establishments of Multinational companies. The venturing of foreign companies in Indian market is indeed bringing huge bucks to the Indian economy.