In a landmark move for the Mumbai real estate market, global financial giant Morgan Stanley has secured a significant office rental deal, leasing an impressive 1 million square feet of space for a monthly rent of ₹15.96 crore. This transaction, one of the largest of its kind in the city, reflects the ongoing demand for premium office spaces amid the evolving business landscape.
About Morgan Stanley
Morgan Stanley, founded in 1935 and headquartered in New York City, is a leading global financial services firm. It operates in over 41 countries with more than 60,000 employees, offering a wide range of services including investment banking, wealth management, sales and trading, research, and investment management. The firm serves a diverse clientele comprising corporations, governments, financial institutions, and individuals, leveraging its extensive expertise in financial markets to provide comprehensive financial solutions.
Key Details of the Morgan Stanley's Office in Mumbai
According to property registration documents accessed via the real estate analytics platform Propstack, Morgan Stanley Advantage Services Private Limited has taken up residence in Oberoi Commerze III, located in the vibrant Oberoi Garden City of Goregaon East. The lease spans 16 floors, covering a total chargeable area of 10.01 lakh square feet. The deal was officially registered on August 28, 2024, with Oberoi Realty Limited as the lessor. It included a stamp duty of ₹1.97 crore and a substantial security deposit of ₹104.9 crore.
Consolidation Strategy
Morgan Stanley announced plans in 2020 to consolidate its Mumbai Global In-house Centre (GIC) operations into a single, centralized campus. Prior to this, the company's operations were distributed across three different locations in the city. The move to Oberoi Commerze III marks a strategic shift aimed at enhancing operational efficiency and collaboration.
Rental Terms and Conditions
The rental agreement features a structured escalation plan, with a 15% increase in rent set to take effect three years after the lease commencement date, followed by another 15% hike three years later. The lease for 14 out of the 16 floors officially began on April 1, 2024.
About Oberoi Commerze III
Oberoi Commerze III is a state-of-the-art, 51-storey commercial development that spans a massive 2.3 million square feet. Located within the International Business Park of Oberoi Garden City, this Grade A tower is equipped with 52 elevators and offers three levels of basement parking, catering to the needs of modern businesses.
This monumental lease agreement underscores Mumbai's status as a burgeoning hub for global finance and reflects the city's robust commercial real estate market. As companies like Morgan Stanley continue to invest in premium office spaces, it will be interesting to see how this trend shapes the future of work in Mumbai.
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