 "Morgan Stanley’s record 1.1 million square feet lease in Mumbai signifies a major shift in India’s commercial real estate landscape.")
Morgan Stanley has made a significant move in the Indian commercial real estate Market by leasing 1.1 million square feet of office space in Goregaon, Mumbai. This nearly 10-year lease, valued at over Rs 2,122 crore, is one of the largest office deals in India for 2024. The bank has rented 16 floors of the Oberoi Commerz III tower, which is part of a major mixed-use development and offers close proximity to an upcoming metro station. This agreement follows negotiations that began in July 2020, during the COVID-19 pandemic. The rising demand for both large and flexible office spaces highlights a changing trend in workplace preferences in 2024.
Morgan Stanley Makes Significant Move with Massive Office Lease in Mumbai
Morgan Stanley is set to make waves in the Indian commercial real estate scene, having signed a landmark deal to lease 1.1 million square feet in the Goregaon suburb of Mumbai. This agreement marks one of the largest commercial real estate leases in India, with the total value exceeding Rs 2,122 crore over a nearly 10-year term.
The financial giant has secured 16 floors in the Oberoi Commerz III tower, a prominent mixed-use commercial structure that stands out as one of the tallest buildings in the country. The agreement was finalized through Morgan Stanley Advantage Services, the company’s Indian arm. Interestingly, discussions for this deal began back in July 2020, during the height of the Covid-19 pandemic, and the lease was officially recorded in the last week of August 2024.
As part of the arrangement, Morgan Stanley has also made a substantial security deposit of Rs 104.9 crore, making this the largest office space deal registered by any company in 2024. The Oberoi Commerz III tower is located within the expansive 2.9 million square feet Oberoi Garden City, which is complemented by an 80-acre premium mixed-use development and will benefit from the proximity to an upcoming metro station.
Looking at broader trends in the office leasing Market for 2024, a report from Knight Frank India indicates that a significant portion of the demand—45 percent—comes from large workspaces exceeding 100,000 square feet. The first half of 2024 alone witnessed transactions totaling 15.69 million square feet in this category, highlighting a robust appetite for spacious office environments.
In addition to the demand for larger spaces, there is also a growing inclination towards flexible office solutions. Flex office spaces have seen a rise in interest, accounting for 12.7 percent of overall leasing in recent times, up from 10.2 percent in 2019. Companies are increasingly embracing flexible work arrangements, with a notable increase in the number of seats occupied in such spaces.
As Morgan Stanley takes this giant step in the Indian Market, it sets a precedent for other companies and reflects the evolving landscape of office space leasing in the country.
Tags: Morgan Stanley, office lease, Mumbai, commercial real estate, flexible workspace, Oberoi Commerz III, India job Market, office leasing trends.
What is the news about Morgan Stanley in Mumbai?
Morgan Stanley has signed a lease to occupy 16 floors in an office building in Mumbai for around Rs 2,122 crore.
Why did Morgan Stanley choose to lease office space in Mumbai?
Mumbai is a major financial hub in India, making it an important location for companies like Morgan Stanley to operate and serve clients.
How will this lease affect the local economy?
The lease will likely boost the local economy by creating jobs and increasing business activity in the area.
When is Morgan Stanley expected to move into the new office?
The specific move-in date has not been announced, but companies usually plan their moves according to construction and setup timelines.
Is this lease part of a bigger trend for foreign companies in India?
Yes, many foreign companies are increasing their presence in India, seeing it as a growing Market and a place for new business opportunities.
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