M2K Corporate Park Office for Sale, Sector 51 Gurgaon

M2K Corporate Park is a finished office-and-retail building on about 2 acres in Block N, Mayfield Garden, Sector 51, Gurugram: two basements, a ground floor and five upper floors, about 1,80,000 sq ft in all, with floor plates of about 30,000 sq ft. The lower levels are shops, sold and let as M2K Corporate Park Shopping Plaza; the upper floors are offices. The row this page replaces gave no rate at all, only a note that units are sold pre-leased and priced off the rent, and a one-unit page for a pre-rented office here called the building a new launch. It is neither new nor a launch, and a rate can be worked out.

The short version: the one office-sized unit with a published size and price asks Rs 16,000 per sq ft, offices are advertised to let at up to Rs 100 per sq ft a month, and that pair gives a gross yield of about 7.5 per cent. Both numbers rest on a single listing each, and this page says so where it uses them.

What sellers ask, divided by the area

• A 550 sq ft retail-or-office unit at Rs 88 lakh: Rs 88,00,000 over 550 is Rs 16,000 per sq ft. This is the only office-sized ask that gives both numbers.
• A 1,100 sq ft shop at Rs 32,000 per sq ft, which is about Rs 3.52 crore (1,100 times Rs 32,000). A shop, not an office, and shown for scale.
• Two 1,293 sq ft anchor shops at Rs 4.88 crore and Rs 5.2 crore: Rs 37,742 and Rs 40,216 per sq ft. These are covered on the M2K anchor shop page.
• A portal's starting price of Rs 1.8 crore with an average of Rs 10,000 per sq ft. No unit size is given. If the average applied, Rs 1.8 crore would buy about 1,800 sq ft, but no listing ties the two together.
• Another portal's band of Rs 2.98 crore to Rs 3.34 crore, again with no sizes, so it cannot be divided.

The two portal figures and the Rs 16,000 ask do not agree. A Rs 10,000 average against a Rs 16,000 ask is a 60 per cent gap on the same building. The most likely reading is that the Rs 10,000 figure is an old launch-era average and the Rs 16,000 ask a current resale, but that could not be confirmed. What settles it is a registered sale deed for an office floor in the building from the last two years, which a buyer's lawyer can pull from the sub-registrar's records. Until then, treat Rs 16,000 per sq ft as a single asking price, not a market rate.

The rent, and the yield it produces

A 908 sq ft bare-shell office is advertised at Rs 100 per sq ft a month, which is Rs 90,800 a month (908 times Rs 100). A leasing page quotes the same Rs 100 for premium space in the building. This site's own rent row for the building printed Rs 55 to Rs 80. Retail rents in the complex run from about Rs 73 to Rs 150, depending on level and frontage.

Now divide. At Rs 100, one sq ft earns Rs 1,200 a year, and on Rs 16,000 that is 7.5 per cent gross. At Rs 80 it is Rs 960 a year, 6.0 per cent. At Rs 55 it is Rs 660, 4.1 per cent. The top of that range is a good return for a Gurugram office; the bottom is poor. Which one you get depends on the lease on the unit you buy, not on the building.

Maintenance charges could not be established for this building: a leasing page says only that they cover common areas, utilities, security and housekeeping, with the rate given on inquiry. Gurugram offices of this age commonly charge a monthly common-area charge per sq ft on top of rent, and on a standard lease the tenant pays it. On a gross lease, or while the unit is empty, the owner pays it, so ask for the current rate and the last twelve months of maintenance bills before you price the unit.

What a pre-leased office here should cost

No pre-leased office in the building was found with a price, a tenant and a rent published together, which is why the old row priced it off the rent without a number. The arithmetic can still be done. A let office earning Rs 100 a month produces Rs 1,200 a year per sq ft. Priced to yield 7.5 per cent it is worth Rs 16,000 per sq ft (1,200 divided by 0.075); priced to yield 6.5 per cent, Rs 18,462 (1,200 divided by 0.065). A unit let at Rs 80 is worth Rs 12,800 at 7.5 per cent and Rs 14,769 at 6.5 per cent. Those are calculations, not quotes: if a seller asks more than about Rs 18,500 per sq ft for a unit let at Rs 100, you are being asked to accept less than 6.5 per cent.

The one-unit page that now folds into this one

This site also carried a separate page for a pre-rented office for sale in M2K Corporate Park. It now folds into this page.

Two things were wrong on that page. It named no size, so no price could be attached to it, and it labelled a building finished around 2016 as a new launch. A let office is by definition in a finished building. Without a size, the table can only give the rate; multiply it by the super area on the seller's documents.

The building

M2K Corporate Park was built by M2K Group, the developer that also built M2K Symphony Floors, a residential project in the same sector. Searches for M2K in Sector 51 return both, so make sure a price refers to this commercial building. The office floors of about 30,000 sq ft are offered to let from about 7,000 sq ft up to a full floor, which puts the building in front of mid-size firms as well as small ones. One listing names International Panaacea as a present tenant; a fuller list of tenants could not be found. One portal dates completion to May 2016. The developer's own page describes the building mainly as retail space for lease.

The nearest metro is the HUDA City Centre station, which a leasing page puts about 4.5 km away, 10 to 15 minutes by road. That is a real cost for an occupier hiring junior staff, and a point to weigh when you judge how fast an empty unit re-lets.

Sector 51 sits in the office pocket between Sohna Road and Golf Course Extension Road, beside Nirvana Country in Sector 50. More offices to let nearby are on the Sector 51 office rent page and the Sector 50 office page.

How it compares nearby

Vatika Business Park in Sector 49 sells let units at about Rs 10,450 to Rs 11,040 per sq ft on rents of Rs 61 to Rs 69, a 7.0 to 7.5 per cent gross yield. Veritas Tower on Golf Course Road works out at about Rs 18,200 to Rs 24,000. Orchid Centre in Sector 53 publishes no sale rate and a Rs 90 rent. M2K Corporate Park's Rs 16,000 ask sits between the Sohna Road buildings and Golf Course Road, and it only earns a Sohna Road yield if the Rs 100 rent holds. More let stock is on the pre-leased property page.

Who this suits, and who should look elsewhere

It suits an investor who wants a small office, around 500 to 2,000 sq ft, in a finished central Gurugram building, and who will buy on a lease already signed at close to Rs 100. It suits an occupier who wants to own a small office near Sohna Road. It does not suit a buyer relying on a portal's average price, one who needs a named corporate tenant on a long lease (none was found published), or one who wants a metro station at the door: the nearest is about 4.5 km away.

Before you pay anything

1. The area: super area and carpet area on the seller's documents, since the one-unit page never gave a size.
2. The lease, if let: tenant, rent per sq ft, start date, lock-in, escalation and deposit, read against the landlord's bank statement.
3. The arithmetic: rent times twelve over the price per sq ft. Below 6.5 per cent at Rs 100 rent, ask why.
4. Maintenance: the current rate, who pays it under the lease, and any arrears.
5. The title: a registered conveyance deed in the seller's name, the occupation certificate and a charge search.
6. Stamp duty: 7 per cent for a man, 5 per cent for a woman and 6 per cent jointly in Gurugram, plus the registration fee.

Frequently asked questions

What is the price of office space in M2K Corporate Park?

The one office-sized ask that carries both a size and a price is a 550 sq ft retail-or-office unit at Rs 88 lakh, which is Rs 16,000 per sq ft. Portals also print a Rs 1.8 crore starting price with an average of Rs 10,000 per sq ft, and a band of Rs 2.98 to Rs 3.34 crore, but neither names a unit size, so neither can be checked. Ground-floor shops in the same complex ask far more, about Rs 32,000 to Rs 40,000 per sq ft.

What rent does an office in M2K Corporate Park earn?

A 908 sq ft bare-shell office is advertised at Rs 100 per sq ft a month, about Rs 90,800 a month, and a leasing page quotes the same Rs 100 for the building. This site's own rent row carried Rs 55 to Rs 80. The gap is wide, so ask for a signed lease in the building from the last year before you believe either end.

What rental yield does a pre-leased office in M2K Corporate Park give?

At Rs 16,000 per sq ft, a Rs 100 rent gives 7.5 per cent gross (Rs 1,200 a year over Rs 16,000), a Rs 80 rent 6.0 per cent and a Rs 55 rent 4.1 per cent. No pre-leased office with a price, a tenant and a rent all published together was found, so the yield on any unit you are offered has to be worked out from its own lease.

How big is M2K Corporate Park, and when was it built?

It stands on about 2 acres with two basements, a ground floor and five upper floors, about 1,80,000 sq ft in all, with floors of about 30,000 sq ft. Offices are offered to let from about 7,000 sq ft up to a full 30,000 sq ft floor. One portal dates completion to May 2016.

Which companies are in M2K Corporate Park?

One listing names International Panaacea as a present tenant. The lower two levels are retail, and a broker is marketing a 5,600 sq ft showroom there. A fuller tenant list could not be established from published sources.

Is M2K Corporate Park RERA registered?

No registration number was found. The building was finished around 2016 and is sold unit by unit on resale, so the documents that matter are the seller's registered conveyance deed, the occupation certificate and, for a let unit, the lease deed with its lock-in and escalation.

Where is M2K Corporate Park?

In Block N, Mayfield Garden, Sector 51, Gurugram, in the office pocket between Sohna Road and Golf Course Extension Road. A leasing page puts it about 4.5 km, or 10 to 15 minutes by road, from the HUDA City Centre metro station, so it is not a walk-to-metro building; staff will need a cab, a shuttle or their own car.