In one of the largest commercial real estate lease transactions to date, global financial services giant Morgan Stanley has secured office space spanning 1.1 million sq. ft. in Mumbai's Goregaon suburb. The lease deal, amounting to more than INR 2,122 crore in rent over a period of nearly ten years, marks a significant milestone in the commercial property sector. Morgan Stanley, through its Indian division, Morgan Stanley Advantage Services, has leased 16 floors of the Oberoi Commerz III commercial tower. This lease will span nine and a half years.

Oberoi Commerz III is part of the prestigious Oberoi Garden City, an 80-acre premium mixed-use development in Goregaon. Spanning 2.9 million sq. ft., it stands as one of Mumbai's tallest office buildings, renowned for its modern design and premium-grade infrastructure. The tower offers world-class amenities and serves as a hub for leading global corporations. Its strategic location, near an upcoming metro station, provides convenient access to key business districts and transport networks across the city. Back in mid-2020, at the height of the COVID-19 pandemic, the US-based financial institution had initially agreed to lease this 1.1 million sq. ft. space in Oberoi Commerz III. The deal, originally set in motion at that time, has now been officially finalised.

Morgan Stanley has made a substantial security deposit of INR 104.9 crore for the lease, according to documents obtained through real estate data analytics firm Propstack. The transaction was registered in the final week of August. This is the largest office space secured by any company in a single deal this year. Arun Kohli, Morgan Stanley's Country Head for India, explained that the company's investment highlights its long-term commitment to its employees. He noted that India plays a critical role in the firm's overall performance and is a key hub for exceptional talent. Kohli added that the new office campus will provide a modern work environment designed to foster a sense of community, innovation, and productivity.

Morgan Stanley is set to consolidate its Mumbai Global In-house Centre (GIC) operations into this single campus in the city. The investment bank established its Mumbai GIC in 2003 and the Bengaluru GIC in 2014 to support its global institutional securities, wealth management, and investment management businesses. This commercial tower is anticipated to serve as a base for one of the largest global insourcing centres (GICs) in Mumbai. This expansion reflects a broader trend in India's office real estate market, where numerous multinational companies are significantly increasing their captive GICs. This growth highlights the availability of a rich talent pool in the country, reinforcing India's strength in the global market.

Morgan Stanley has been operating in India since 1993, establishing an institutional securities platform that offers a wide range of services, including investment banking, capital markets, equities, fixed income, private equity, derivative products, and research. The firm is also expanding its investment management businesses. Despite a sluggish global market characterised by economic uncertainties, the Indian office sector has experienced sustained growth. This strong performance is viewed as a testament to the solid underlying fundamentals and the minimal lasting impact of global headwinds.

Recent data from JLL India indicates that the office market achieved its best-ever performance in the first half of the year, with gross leasing reaching 33.5 million sq. ft. This figure represents a 29% increase compared to the previous year, surpassing the prior record of 30.71 million sq. ft. set in the first half of 2019.

Morgan Stanley's decision to consolidate its Mumbai Global In-house Centre at Oberoi Commerz III signifies not only the firm's long-term commitment to India but also highlights the country's potential as a hub for global business operations. This investment underscores the growing trend of multinational companies expanding their presence in India, driven by a strong talent pool and favourable market conditions. As the Indian office sector continues to demonstrate resilience and growth amid global uncertainties, it reinforces India's position as an attractive destination for corporate investment and innovation.