Three small acronyms β NNN, super area, escalation β that decide whether your monthly rent is what it says on the contract. We translate the most common commercial lease terms with Bhubaneswar examples.
NNN vs Gross leases
In a gross lease, the landlord pays property tax, common-area maintenance, and insurance out of the rent. In a NNN (triple-net) lease, the tenant pays them on top. The difference, on a 2,000 sq.ft. office in Khandagiri, can be βΉ15,000-25,000/month β entirely outside the headline rent.
Carpet area vs Super area
Carpet area is what your furniture sits on. Super area includes lobbies, lifts, common toilets β typically 1.25-1.40Γ carpet. When a quote says "βΉ40/sq.ft. on super area" vs "βΉ50/sq.ft. on carpet" β they may be the same monthly rent. Always confirm which area the price is on.
Lock-in and notice
Standard Bhubaneswar commercial lease: 11-month lock-in, 3-month notice. Lock-in means you can't leave without paying out the remaining months. Notice is the warning period either side must give to terminate.
Annual escalation
Most commercial leases include an annual escalation, typically 5-7%. On a βΉ2L/month lease at 7%, year 3 rent is βΉ2.29L. Always model the full lease term, not just year 1.