Splendor Trade Tower Office for Rent, Sector 65 Gurgaon

Office space in Splendor Trade Tower is quoted at Rs 70 per sq ft a month for available space, and Rs 78 for a pre-leased unit on a nine-year term. The pre-leased unit costs 11 per cent more, and that gap is the most useful thing on this page.

What a nine-year lease is worth: about 11 per cent

In most of the buildings in this research the published rates move for reasons nobody explains — a different tower, a different floor, an ageing fit-out. Here the two rates differ for one identifiable reason: one unit comes with a tenant on a nine-year lease and the other comes empty.

So on this corridor the market pays about 11 per cent for a long lease and a covenant. That number transfers. Any time you are offered a pre-leased unit at a premium, 11 per cent is the order of magnitude a nine-year term justifies on Golf Course Extension — and anything much above it is being charged for the story rather than the security.

For a tenant the same fact reads in reverse: if you are taking vacant space here, Rs 70 is the number, and a landlord quoting you Rs 78 is quoting somebody else's deal.

Where Rs 70 sits, on the ladder this research has built

The same developer's Spectrum One at Sector 58 runs Rs 60 to Rs 80 furnished, so Splendor's own two buildings bracket each other closely — which is a sign of a house that prices its stock consistently rather than opportunistically. And the Extension-versus-Road gap holds: Rs 70 to Rs 85 out here against Rs 90 to Rs 140 on the Road itself.

Unlike the last two buildings in this batch, no maintenance figure is published for Splendor Trade Tower. On the evidence from the same corridor — Rs 19 per sq ft a month at Orchid Centre on Golf Course Road, Rs 18 off MG Road — budget something in the Rs 14 to Rs 19 band and get it in writing before you compare Rs 70 here with any rate anywhere else.

The building

This is a serious piece of commercial real estate rather than a converted podium:

• 2.70 acres with about 4,50,000 sq ft of built-up area, on Golf Course Extension Road at Sector 65.
• Designed by Arcop Associates, and the developer publishes the building on its own site — which in this research is the exception rather than the rule.
• Units from 1,000 sq ft to 10,000 sq ft available for lease.

That last line is worth pausing on. A 4,50,000 sq ft building offering units from 1,000 sq ft is strata-held small-suite stock at scale — which is good news if you want 2,000 sq ft on a Grade A address, and a caution if you want a whole floor, because in a building sold in small lots a contiguous floor has to be assembled from several owners.

So ask who owns what. If your requirement spans two or three units, you may be negotiating with two or three landlords, on two or three lease forms, with three different views on escalation.

Sector 65 in context

Sector 65 is the middle of the Golf Course Extension commercial belt, and this research has now covered enough of it to say what that means. M3M Tee Point in the same sector sells offices at Rs 12,000 to Rs 14,000 per sq ft on an implied rent of Rs 70 to Rs 82 — which is exactly the band Splendor Trade Tower actually achieves, and a rare case of a sale price and a neighbour's real rent agreeing with each other.

Put the two together and you have something genuinely useful: on this stretch, a Rs 70 to Rs 80 rent supports a capital value around Rs 12,000 to Rs 14,000 per sq ft at a 6.5 to 8.7 per cent yield. A seller quoting materially more than that is asking you to believe in a rent the corridor does not pay.

What to settle before you sign

1. Whether the unit is vacant or pre-leased. Rs 70 and Rs 78 are different products, not a range.
2. The maintenance charge, which is not published. Expect Rs 14 to Rs 19 on this corridor.
3. Who owns the space you are being shown, and how many owners your requirement spans.
4. Chargeable versus carpet on the quoted rate, since the loading factor moves your real cost per usable foot by a third.
5. Power backup — inside maintenance, or billed on consumption.
6. Parking bays per thousand square feet, named in the lease rather than promised.

Frequently asked questions

What is the office rent in Splendor Trade Tower, Sector 65 Gurgaon?

About Rs 70 per sq ft a month for available vacant space, and about Rs 78 for a pre-leased unit on a nine-year term. Units from 1,000 sq ft to 10,000 sq ft are offered for lease. No maintenance figure is published, so budget Rs 14 to Rs 19 per sq ft a month on the evidence from the same corridor and get it in writing.

Why does the pre-leased unit cost more?

Because it comes with a tenant on a nine-year lease, and a buyer or investor pays for that security. What premium a nine-year term should command is the question, and here it is answered. The gap here is 11 percent, which is the most useful number on the page: it is what the market on Golf Course Extension actually pays for a long lease and a covenant. Anything charged much above that premium is being charged for the story rather than the security.

How does it compare with the rest of the corridor?

Compared across the corridor, closely with its own stablemate and below the Road. The same developer's Splendor Spectrum One at Sector 58 runs Rs 60 to Rs 80 furnished, Galaxy Magnum at Sector 58 about Rs 85, and Orchid Centre at Sector 53 on Golf Course Road proper Rs 90 to Rs 140. So the Extension trades at roughly 60 to 70 per cent of the Road, and Splendor prices its two buildings within a few rupees of each other.

Can I take a whole floor here?

Possibly, but ask carefully. The building runs to about 4,50,000 sq ft over 2.70 acres yet offers units from 1,000 sq ft, which means it is strata-held small-suite stock at scale. A requirement spanning two or three units may mean two or three landlords, two or three lease forms and three views on escalation. Establish who owns what before you plan a fit-out.

Who built it, and what is the specification?

The builder is Splendor Group, with the building designed by Arcop Associates, on 2.70 acres at Sector 65 on Golf Course Extension Road with about 4,50,000 sq ft of built-up area. The developer publishes the building on its own site, which in this research is the exception rather than the rule and makes the asset identifiable at source rather than only through agents.

Does the rent support the sale prices in this sector?

It does, which is unusual. M3M Tee Point in the same Sector 65 sells offices at Rs 12,000 to Rs 14,000 per sq ft on an implied rent of Rs 70 to Rs 82 a month — the band Splendor Trade Tower actually achieves. At the corridor's 6.5 to 8.7 per cent yields, a Rs 70 to Rs 80 rent supports roughly Rs 12,000 to Rs 14,000 per sq ft of capital value. A seller asking materially more is asking you to believe in a rent this stretch does not pay.