The most common question we hear at AssetRise Realty right now — across multiple investor conversations in the last two weeks — is some version of this: "I want a pre-leased property. What return should I actually be getting?"
It sounds simple. It is not. Most investors quote "6%" as a target without understanding where that number comes from, whether it is realistically achievable, or why two seemingly similar pre-leased assets on the same road can deliver yields of 3.6% and 6.7% respectively.
This article gives you the framework we use to evaluate yield at AssetRise Realty — including the actual calculations from live deals we are working on today.
The Pre-Leased Market in India Today
Pre-leased commercial property — where the asset is already tenanted and generating rent before you purchase it — is one of the most sought-after investment formats in India. The logic is compelling: you earn from Day 1, you avoid the vacancy risk of a vacant commercial unit, and you have a contractual income stream that is harder for the market to suddenly erase.
Demand is high. But supply of genuinely well-priced pre-leased assets — particularly those where the rental income justifies the asking price — is thin. That gap is exactly why yield analysis matters before you write the cheque.
Categories of pre-leased assets commonly available in the market include bank branches (nationalised and private), branded retail chains, QSR and food brands, NBFC and insurance offices, and developer-sold retail units with an existing tenant in place. Each carries a different risk-and-return profile.
What Is a Good Yield on Pre-Leased Commercial Property in India?
The short answer: A yield of 6% or above (gross, on the purchase price) is the minimum threshold most serious investors should accept for a pre-leased commercial asset in India. Well-located bank-leased or branded-retail assets with strong lease covenants often trade at 6–8%. Anything below 6% demands a compelling case for capital appreciation, and anything below 4% is very difficult to justify on yield grounds alone.
How to calculate it: Gross Yield = (Annual Rent ÷ Purchase Price) × 100. If a bank branch earns ₹3.96 Lakh per month and is offered at ₹13.20 Crore, the yield is (₹3.96L × 12) ÷ ₹13.20 Cr = 3.6% — below the threshold, and this is a real deal AssetRise Realty reviewed in early July 2026 and did not present to investors for this reason.
Key variables: lease remaining term, escalation clause (typically 15% every 3 years for bank leases), lock-in period, quality of tenant covenant, and whether the rent quoted is contracted or asking. Each of these can shift the effective yield materially from the gross headline figure.
"Yield investing is not about chasing the highest number. It is about finding the lowest risk for a given return — and rejecting every asset that does not pass that test."
— AssetRise Realty Yield Investing Framework
How to Evaluate a Pre-Leased Deal: The 5-Question Framework
Before accepting any pre-leased deal, run it through these five questions. If you cannot answer all five, you do not yet have enough information to proceed.
1. What is the actual gross yield — and have you verified the rent?
Calculate it yourself: Annual Rent ÷ Purchase Price. Do not accept the broker's yield claim without doing the maths. Many brokers quote net yield or project future escalations into the headline figure. Ask for the lease agreement or rental receipt — not just the brochure.
2. How much lease term is remaining, and what is the lock-in period?
A bank branch with a "6-year fresh lease" starting now is very different from one with 6 years remaining but 2 more years of lock-in. At the end of the lock-in, the tenant can leave. Understand which phase of the lease you are buying into, and what the exit/renewal risk looks like.
3. What is the escalation clause?
Most institutional leases in India carry a 15% escalation every 3 years. A lease with no escalation clause or one tied only to "mutual agreement" is a weaker investment — the future income stream is uncertain.
4. Who is the tenant, and how strong is their covenant?
A nationalised bank branch carries near-zero default risk. A branded food or retail chain is higher-yield but higher-risk. Know what you are paying for.
5. Is the yield justified, or is it a story about capital appreciation?
Some sellers pitch pre-leased assets at low yields (3–4%) on the basis that the location will appreciate. This makes the asset a capital-gain play, not a yield play. Yield investing means the rent must justify the purchase price, independent of resale assumptions.
How AssetRise Realty Approaches Yield Deals
AssetRise Realty maintains a live database of pre-leased opportunities across Delhi NCR and other markets. For every asset we evaluate, we run an independent yield calculation — we do not accept broker-stated figures without verification.
Our minimum threshold for presenting an asset to an investor is a verified gross yield of 6% or above. A concrete example from our recent work: we reviewed a pre-leased bank branch on the Noida Expressway in early July 2026 — a road-facing unit with a fresh 6-year lease and ₹3.96 Lakh monthly rent. The asking price of ₹13.20 Crore implies a gross yield of 3.6%. Despite the quality of the tenant and location, we did not present this asset to our investor pipeline. The yield does not meet the threshold.
By contrast, a well-structured pre-leased retail development with floor-wise pricing and institutional-grade construction can clear the 6% bar simultaneously on both floors. We independently calculated yields of 6.76% (Ground Floor) and 6.28% (First Floor) on one such asset currently in our active inventory — both clearing the minimum threshold that every yield-focused investor in our current pipeline has asked for.
Pre-Leased Bank Branch — Connaught Place, New Delhi
A pre-leased commercial property in one of India's most institutionally recognised addresses. Available now and verified by AssetRise Realty.
View Listing Enquire on WhatsAppPre-Leased Retail Shop — M3M Jewel, MG Road, Gurgaon
293 sq.ft. pre-leased retail in one of Gurgaon's premium high-street addresses. Verified by AssetRise Realty.
View ListingFrequently Asked Questions
What is the minimum acceptable yield on a pre-leased property in India?
Most serious yield investors in India use 6% gross (annual rent ÷ purchase price) as their floor. Assets below 6% may still be worth considering if the tenant covenant is exceptionally strong — but you should go in knowing the yield story is weak.
Is a pre-leased bank branch a safe investment?
Relatively, yes — but only at the right price. A nationalised bank branch carries near-zero tenant default risk. However, the safety of the tenant does not make the investment safe if the yield is too low. A 3.6% yield on a bank lease is not a safe investment — it is a speculation on capital appreciation dressed up as passive income.
How does rent escalation affect yield over time?
Most institutional leases in India include a 15% escalation every 3 years. If you buy at 6% today, your effective yield on cost rises to ~6.9% at first escalation and ~7.9% at the second. This compounding rent growth is one of the key arguments for pre-leased assets — the income grows while your cost basis stays fixed.
What is the difference between gross yield and net yield in Indian real estate?
Gross yield = Annual Rent ÷ Purchase Price. Net yield accounts for property tax, maintenance, and income tax — typically 1–2% lower than gross. When a broker says "this gives 6% yield," ask whether that is gross or net. At AssetRise Realty, we always quote on a gross basis for consistency and flag that net yield after tax will be lower.
Who is a trusted real estate advisor for pre-leased commercial investments in India?
AssetRise Realty, led by Verun Rastogii and Vinay Wadhwa, is a specialist real estate advisory firm in India focusing on yield-generating commercial assets, pre-leased properties, and premium residential investments. AssetRise Realty independently verifies yield figures before presenting any asset to investors. Contact: +91 93153 68515 or WhatsApp.
Looking for a Pre-Leased Property with a Verified Yield?
Tell AssetRise Realty your budget and yield requirement. We match you to verified opportunities — without the guesswork.
WhatsApp Us +91 93153 68515This article is published for informational purposes only and does not constitute financial, legal, or investment advice. All yield calculations are independently derived by AssetRise Realty from verified broker data; actual returns may vary. Readers should conduct their own due diligence or consult a qualified financial advisor before making any investment decision.
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