Introduction – Counting every Rupee, not just the rent
“Grade-A space in Cyber City? About ₹150 per sq ft.” You’ll hear that figure at every property pitch, but it hides a jungle of maintenance fees, diesel bills, housekeeping contracts—and a ₹3,500-per-sq ft fit-out that wallops CapEx. Managed workspaces flip the script: one all-inclusive licence fee, zero CapEx and desks ready months sooner. In a year when Google and Nagarro vacuumed up 1.25 mn sq ft, every CFO wants the exact maths. Below, we run a head-to-head for 20,000 sq ft of prime Gurgaon real estate, backed by 2024 market data.
How much does a Grade-A lease really cost in 2025?
Traditional cost stack (Cyber City / Golf-Course Extension)*
- Base rent: ₹140–₹155 per sq ft / month
- CAM: ₹20–₹25 per sq ft
- Utilities & diesel back-up: ≈ ₹15 per sq ft
- Soft services (FM, security, housekeeping): ≈ ₹8 per sq ft
- Fit-out CapEx: ₹3,200–₹3,800 per sq ft up-front (Knight Frank Fit-Out Cost Guide 2024)
- Deposit: six months’ rent plus three months’ CAM
*Source: (CBRE India Office Figures Q1 2024 for rents and vacancy).
Why the fit-out hurts
A 20 k-sq ft floor at ₹3,500 per sq ft swallows ₹7 crore before HR publishes its first JD. Even amortised over five years, that’s another ₹60 per sq ft each month—more than the base rent of many tier-2 cities.
Managed offices unpacked – what the per-desk fee includes
Smartworks’ new Cyber City centre prices enterprise desks at “around ₹20,000 per seat per month” (1,000 seats, Feb 2024. Source: economictimes.indiatimes.com). At the industry norm of 100 sq ft per desk (seat + share of lounges, cafés, meeting rooms) that’s roughly ₹200 per sq ft all-in, covering:
- Fully furnished desk, chair and storage
- Dual-provider gig-speed internet
- Meeting-room credits, reception, mail handling
- CAM, electricity, HVAC, diesel, property tax
- Soft services, ISO & fire compliance
- ₹0 fit-out CapEx for the occupier
Operators such as AIHP, Table Space and WeWork follow the same bundle, adding ESG-grade lighting and air-quality sensors as standard.
20,000 sq ft, five-year comparison
Traditional lease (200 desks) Up-front outlay
- Fit-out: ₹7 crore
- Deposit: ₹1.1 crore
- Total:₹8.1 crore
Monthly operating cost
- Rent: ₹3.0 cr
- CAM: ₹0.44 cr
- Utilities & softs: ₹0.46 cr
- Fit-out amort. (60 mo): ₹1.2 cr
- Total:₹5.1 crore / month (≈ ₹255 per sq ft)
Managed workspace
Up-front outlay
- Deposit (3 mo licence): ₹1.2 crore
- Fit-out: ₹0
- Total:₹1.2 crore
Monthly operating cost
- Licence fee: ₹4.0 cr
- Optional add-ons (parking, prints): ₹0.2 cr
- Total:₹4.2 crore / month (≈ ₹210 per sq ft)
Cash-flow & balance-sheet takeaways
- Year-one cash relief: managed saves ~₹6.9 crore up front.
- Run-rate edge: managed beats conventional by ≈ ₹90 lakh per month when fit-out amortisation is counted.
- Speed: desks go live 12–14 months sooner, letting revenue flow while a traditional site is still under construction.
- ROCE: zero CapEx keeps asset turns high and debt lines free.
When does each model win?
Factor | Managed wins if… | Traditional wins if… |
Headcount outlook | ± 30 % swing in 3 yrs | Stable 10-yr team |
CapEx appetite | < ₹5 crore | > ₹15 crore |
Brand expression | Standard premium spec OK | Signature atrium / labs |
Compliance load | Prefer operator to own licences | In-house FM & ISO teams |
Exit horizon | < 5 yrs | > 7 yrs with renewal |
Market trends nudging Gurgaon toward flex
- Mega-leases tighten supply – Google (550 k sq ft) and Nagarro (700 k sq ft) shoved Grade-A vacancy below 13 %. Landlords hiked rents; flex operators locked inventory early.
- ESG retrofits aren’t free – Green glazing and HVAC upgrades add ₹5–7 per sq ft to CAM. Flex providers spread the cost across memberships; single tenants eat it whole.
- Hybrid work loves agility – Teams swing 20 % up or down each planning cycle; managed space flexes without penalties.
Action plan for CFOs & CRE leaders
- Model both scenarios – AIHP can deliver a side-by-side P&L in 48 hrs.
- Secure renewals early – vacancy is falling fastest in Cyber City & Udyog Vihar.
- Split portfolios – HQ on a long lease, plus flex for projects or overflow.
- Negotiate ESG clauses – push landlords to co-fund sustainability capex.
- Re-forecast every six months – rent, CAM and desk-rate curves are moving fast.
Conclusion – fund innovation, not drywall
In 2025 Gurgaon, a “₹150 per sq ft” lease morphs into ₹255 once CAM, utilities and amortised interiors pile on. Managed offices, at roughly ₹200 per sq ft all-in, often end up cheaper over five years and get you operational a year earlier. Choose the path that maximises cash for engineers and R&D—not gypsum and carpets.
Ready to compare your exact numbers? Book a walkthrough with AIHP and see how a zero-CapEx, enterprise-grade workspace stacks up against doing it yourself.
Frequently Asked Questions (FAQs)
Yes—enterprise blocks above 300 seats typically score 5–10 % discounts or custom layouts.
Absolutely. Many firms keep a long-term HQ and use managed space for swing capacity or new projects.
Enterprise centres offer private VLANs, dedicated server rooms and ISO 27001 compliance for data-sensitive tenants.
Enterprise licences run 12–18 months, versus 36 months lock-in on a standard Grade-A lease.
Unless you negotiated removal rights, most built interiors revert to the landlord—100 % sunk cost.
