Spaze Boulevard Office for Sale, Sohna Road Gurgaon

Spaze Boulevard is a finished office and retail building on about 2.138 acres on main Sohna Road, Sector 47, Gurugram, built by Spaze Group. Shops, banks and restaurants take the ground and first floors, offices run from level 2 up, and three basements hold the parking. Tenants include KIA Motors India, Ujjivan Small Finance Bank and Infinity eServices. The row this page replaces printed a band of about Rs 9,000 to Rs 13,000 per sq ft with nothing behind it.

No vacant office here carried a published price on any page read. What can be priced is the let stock: one 3,000 sq ft unit marketed at a 7.5 per cent return implies about Rs 11,350 per sq ft, which sits inside the old band. The rest of this page shows how that number is reached and what a buyer should check.

What the let units imply, worked through

The arithmetic: 3,000 x Rs 70.91 is Rs 2,12,730 a month; times twelve is Rs 25,52,760; divided by 0.075 is Rs 3,40,36,800; divided by 3,000 is about Rs 11,346 per sq ft. The listing does not print the price, only the rent and the return on investment (ROI), so this is a derived figure. Ask the seller to confirm it in writing.

For the Bestway unit, 1,140 x Rs 64.5 is Rs 73,530 a month and Rs 8,82,360 a year. If a seller asked the same 7.5 per cent, the price would be about Rs 1.18 crore, about Rs 10,320 per sq ft; at 6 per cent it would be about Rs 1.47 crore, about Rs 12,900. Those are what the lease would support at each return, not asks. The lease runs nine years with a three-year lock-in.

What the yield means against the building next door

In Spaze Platinum Tower, a few hundred metres away in Sector 47, a 7,300 sq ft let office asks Rs 9.49 crore, Rs 13,000 per sq ft, and yields exactly the 6 per cent it prints. The same 6 per cent on the Infinity eServices rent would justify Rs 25,52,760 / 0.06, about Rs 4.25 crore, or Rs 14,182 per sq ft. So Spaze Boulevard's let unit is priced for a higher return than its neighbour's. Two reasons are plausible: the Rs 70.91 rent is above the Rs 60 a new tenant is quoted, so the market may doubt it will be renewed at that level, and the building is smaller with a retail podium rather than large corporate floors.

That is the main risk with this unit. If Infinity eServices left and the space re-let at the Rs 60 new-tenant quote, the rent would fall to Rs 1,80,000 a month, Rs 21,60,000 a year, and the yield on Rs 3.40 crore would fall to about 6.3 per cent. Check when the lease started, when the lock-in ends and how many step-ups are left.

Rent and running costs

A new tenant is quoted Rs 60 per sq ft a month on a 24,144 sq ft space whose carpet area is 13,350 sq ft, so carpet is 55.3 per cent of super area. Let units pay Rs 64.5 and Rs 70.91. The only deposit found is five months. No maintenance rate for this building was published; a leasing site gives Rs 22 at Spaze iTech Park, the same developer's building on Sohna Road. On a let unit the tenant normally pays maintenance, but confirm it in the lease, because a landlord who pays Rs 22 on a Rs 70.91 rent gives up almost a third of the income.

How it compares on Sohna Road

Spaze Boulevard sits in the middle of the road on price and at the top on stated yield. Read more on JMD Megapolis, Spaze iTech Park, Universal Trade Tower and Raheja Mall. The road as a whole is on the Sohna Road office page and the sector on Sector 47 offices. More let stock across Gurugram is on the pre-leased property page.

What the sources disagree on

• Sector 47 or 49. Most listings and a 2017 investment review say Sector 47; one coworking page says Sector 49. The conveyance deed settles it.
• When it was built. The review says in service since 2016; the coworking page says 2020. The developer publishes an approved plan from 2010 and a revised plan sanctioned in 2020, so 2020 is the revision, not the opening. The occupation certificate settles it.
• How big it is. 2,80,000 sq ft on one listing site, 70,000 sq ft on a pre-leased listing. Nine storeys with three basements on 2.138 acres fits the larger figure better; the sanctioned plan settles it.

Registration and title

No RERA number was found, and none is expected for a building finished and occupied before Haryana's registration began. A purchase rests on the seller's registered conveyance deed, the building's occupation certificate, and the lease. Because the building plan was revised in 2020, ask whether the unit you are buying is in the revised plan and whether any compounding or additional charges were paid.

The case against

There is no metro: Spaze Platinum Tower next door is about 6.9 km from the nearest station, and Spaze Boulevard is in the same position. The carpet-to-super ratio of about 55 per cent is low. The let unit's rent is above the new-tenant quote, so the 7.5 per cent return depends on this tenant staying. And no vacant office price was published, so a buyer who wants to occupy has no market figure to test a seller against except the let stock.

Before you pay anything

1. The price in writing, and the per sq ft rate on super and carpet area.
2. The lease: tenant, start date, rent, lock-in end, step-ups left and deposit held.
3. The yield on the new-tenant rent: what the unit returns if it re-lets at Rs 60.
4. Maintenance: the rate and who pays it.
5. Title: conveyance deed, occupation certificate, the 2020 revised plan, 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 registration.

Looking to lease rather than buy? The Spaze Boulevard rent page covers asking rents, maintenance, deposits and lock-ins in the building.

Frequently asked questions

What is the price of office space in Spaze Boulevard?

No vacant office in Spaze Boulevard carried a published price on any page read. The one let unit whose figures can be worked through, 3,000 sq ft paying Rs 70.91 a month at a printed 7.5 per cent return, implies about Rs 3.40 crore, or about Rs 11,350 per sq ft. A 1,140 sq ft unit let to Bestway is offered without a published price.

What rent does an office in Spaze Boulevard earn?

About Rs 60 to Rs 71 per sq ft a month on super area. A vacant 24,144 sq ft space is quoted at Rs 60 to a new tenant; the 1,140 sq ft Bestway unit pays Rs 64.5; the 3,000 sq ft Infinity eServices units pay Rs 70.91 with five months' deposit.

What is the rental yield on a pre-leased office in Spaze Boulevard?

The 3,000 sq ft let unit is marketed at 7.5 per cent. Its rent is Rs 2,12,730 a month, Rs 25,52,760 a year, so 7.5 per cent means a price of about Rs 3.40 crore. At the 6 per cent that a priced lease in Spaze Platinum Tower next door pays, the same rent would justify about Rs 4.25 crore, so 7.5 per cent is the better deal if the tenant holds.

Is Spaze Boulevard in Sector 47 or Sector 49?

Sector 47. Most listings, a leasing site's address and an investment review place it in Sector 47 on main Sohna Road; one coworking page says Sector 49. The developer's page says only Sohna Road, so the conveyance deed and the sanctioned plan settle it for a purchase.

When was Spaze Boulevard built, and is it RERA registered?

An investment review says it has been in service since 2016; one coworking page says 2020, which matches the date of a revised building plan the developer publishes, not the opening. No RERA number was found and none is expected for a building finished and occupied before registration began; ask for the occupation certificate.

Which companies are in Spaze Boulevard?

Occupants named on a listing site include Infinity eServices, KIA Motors India, Ujjivan Small Finance Bank, Cult.fit, A2Z Buying Services and Silver-x Projects India, with a Crepe-Fe restaurant. Bestway holds a 1,140 sq ft unit on a nine-year lease.

How big is Spaze Boulevard?

The total plot is about 2.138 acres, with nine storeys (three basements, ground and eight floors on one listing), with retail on the ground and first floors and offices from level 2. Built-up area is given as 2,80,000 sq ft on one listing site and 70,000 sq ft on a pre-leased listing; neither could be checked against the sanctioned plan.