US multinational investment management and financial services firm Morgan Stanley has leased two floors spread across 86,000 sq ft in a commercial tower in Worli for 10 years at a rent of Rs 325 per sq ft per month, documents accessed by Propstack showed.
The company will pay a lease of more than Rs 300 crore for the office space spread across an area of 86,200 sq ft located on the 39th and 40th floors of the Raheja Altimus Building coming up in Mumbai which is expected to be completed within two years, the documents showed.
The project is spread across an area of more than 3 acres and is expected to have more than one million sq ft of leasable area.
The lease rent of Rs 325 per sq ft is payable for the premises and the ODU (outdoor unit) space for the first year, which will increase by 4.25 percent per annum, as per the documents.
The company will have to pay the landlord around Rs 84 million which is equivalent to three months' rent for the office premises and the outdoor unit space during the first year of the term within 21 working days from the date of the execution.
Both transaction advisors, JLL and K Raheja Corp, refused to comment. Response to queries sent to Morgan Stanley is awaited.
“Over the last few years, BKC (Bandra Kurla Complex) has emerged as the front office hub as corporates shifted from Nariman Point (erstwhile CBD). This was primarily due to more modern buildings and better proximity to human resources. However, with Bandra-Worli Sea Link, Worli micro market was always an alternate option especially at comparatively lower rents. Corporates who are considering a front office move and firms that are as yet undecided will start looking at Worli more closely,” said Raja Seetharaman, co-founder of Propstack.
In 2020, Morgan Stanley and Oberoi Realty announced that they had concluded negotiations and reached a deal for Morgan Stanley to lease up to 1.1 million square feet of office space for 9.5 years from Oberoi Realty. The move is to consolidate Morgan Stanley’s Mumbai global in-house centre (GIC) operations to a single campus in the city.
Office space absorption touched 40.6 million sq ft during Q1-Q3 2022, a two-fold increase from the same period last year which witnessed lockdowns due to COVID-19, and leasing is expected to cross 50 million sq ft across the top six cities, a new report has said.
The top six cities included Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune.The spurt in leasing is driven by a spillover in demand for the last two years. Occupiers who had postponed their leasing decisions during 2020 and H1 2021 are now being even more optimistic about leasing space. While hybrid working continues to be the mainstay, occupiers are not shying away from leasing new large spaces, said the report by Colliers India.