What are Commercial Pre-Leased REITs?
Commercial Pre-Leased REITs invest in office spaces and commercial buildings that already have tenants with active lease agreements.
- Pre-Leased Security: Tenants already in place before investment
- Grade-A Offices: Premium commercial spaces in top business districts
- Stable Rental Yield: 7-9% annual distribution from lease rentals
- Long Lease Terms: Typically 9-15 year agreements with escalation clauses
- Listed & Liquid: Trade on stock exchanges like regular shares
How Commercial Pre-Leased REITs Work
These REITs own and manage pre-leased commercial properties:
- Trust acquires office buildings with existing tenants
- Rental income collected and distributed to unitholders quarterly
- Built-in rent escalation ensures income growth
- SEBI-regulated disclosures and NAV reporting
- Professional property management maintains asset quality