Almost every foreign company entering India asks the same question eventually: should we lease our own office, or use a managed/dedicated space run by someone else? The honest answer depends entirely on how certain you are about staying — and most first-time entrants are less certain than they think.
What "traditional lease" actually means
A traditional commercial lease in India typically involves:
- A direct agreement with a landlord or developer, usually for 3-9 years
- A large upfront security deposit, commonly 6-10 months of rent
- Full responsibility for fit-out — electrical, partitions, furniture, networking, branding
- Full responsibility for ongoing facilities management: power backup contracts, internet, security staffing, housekeeping
- A registered lease deed and, depending on the state, stamp duty and registration costs
This model gives you the most control — your own branded space, your own layout, your own facilities vendors. It also has the longest timeline (often 4-6 months from signing to move-in) and the highest upfront capital commitment.
What "managed office" or "dedicated seats" actually means
A managed office or dedicated-seat model means an operator has already built, fitted out, and is running a facility, and you take space inside it — either a private floor/wing (managed office) or a set number of desks within a shared, professionally-run space (dedicated seats):
- No fit-out required — walk in and start working
- Facilities (power backup, internet, security, housekeeping) already running and tested
- Shorter commitment periods, often month-to-month or short fixed terms
- Lower upfront deposit — typically one to three months instead of six to ten
- Ability to scale seats up or down without renegotiating a lease
The tradeoff is less control over layout and branding, and a per-seat cost that can look higher per square foot than a raw lease — though it's usually cheaper all-in once you account for fit-out, facilities management overhead, and the deposit difference.
A direct comparison
| Factor | Traditional lease | Managed office / dedicated seats |
|---|---|---|
| Time to move in | 4-6 months typical | Days to a few weeks |
| Upfront deposit | 6-10 months' rent | 1-3 months typical |
| Fit-out cost | Your responsibility | Included |
| Facilities management | Your responsibility | Included and pre-tested |
| Commitment length | 3-9 years typical | Month-to-month to short fixed term |
| Ability to scale seats | Requires renegotiation | Flexible, add/reduce as needed |
| Branding/control | Full control | Limited to your own space/seats |
When a traditional lease is actually the right call
Sign your own lease when:
- You've already run a pilot team in India for 12+ months and know you're staying
- Headcount projections are firm — you're not guessing at 50 seats, you know you need 50 seats
- Branding and full control over the space genuinely matter (client-facing showroom, large training facility, etc.)
- You have local legal and facilities management resources to run it, or plan to hire them
When managed/dedicated space is the right call
Start with a managed or dedicated model when:
- This is your first India presence and you're validating the market, not committing to it
- You need a working office in weeks, not months
- Your team size is likely to change in the next 12-18 months
- You don't yet have local facilities management expertise on the ground
- You want to avoid a multi-year lock-in before you're certain of your India strategy
The pattern we see most often
Most foreign companies that eventually sign their own lease started with a dedicated or managed setup first — they used it to prove out the market, hiring model, and team size, then transitioned to their own space once the uncertainty was gone. Very few companies go straight to a 5-year lease as their first move into India, and the ones that do often end up renegotiating or subletting space they overcommitted to.
We run our own dedicated-seat model out of Spaze iTech Park in Gurgaon specifically because it's the lower-risk way to start — no real estate commitment before you know your India presence works. If you're weighing a lease against a dedicated setup for your first team, talk to us before you sign anything with a multi-year lock-in.
