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Commercial Lease Rent Escalation Calculator
Project cumulative commercial lease outflow, security deposits, and year-by-year rent escalations (e.g. 5% annual or 15% triennial) plus Common Area Maintenance (CAM).
Standard Commercial Lease Terms in India
Commercial office and retail leases in India typically follow long-term structures with standard escalation covenants:
Lease Tenure: 9 years (3+3+3 structure) or 15 years with 3-year or 5-year lock-in clauses.
Standard Escalation:15% every 3 years (traditional standard) or 5% annually (growing trend in Grade-A IT parks).
CAM (Common Area Maintenance): Charged per sq. ft. per month (₹10 to ₹35/sq. ft.) for security, DG backup, housekeeping, and HVAC.
Formula
Escalated Rent = Base Rent × (1 + Escalation %)^EscalationPeriods Total Annual Outflow = (Monthly Rent × 12) + (CAM per sq.ft. × Super Built-up Area × 12)
Frequently Asked Questions
The industry standard in Indian retail malls and commercial office parks is 15% rent escalation every 3 years, or 5% compounded annually.
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In major metros (Mumbai, Bangalore, Delhi NCR), commercial landlords typically require 6 months of gross rent as refundable security deposit.