For ten years, Morgan Stanley will rent two floors in Worli, Mumbai.

The office space, which spans 86,200 square feet and is located on the 39th and 40th floors of Mumbai’s Raheja Altimus Building, will be leased from the company for more than Rs 300 crore.

According to documents accessed by Propstack, the US multinational investment management, and financial services firm Morgan Stanley has leased two floors totaling 86,000 square feet in a commercial tower in Worli for ten years at a rent of Rs 325 per square foot per month.

According to the documents, the company will lease office space totaling 86,200 square feet on the 39th and 40th floors of Mumbai’s Raheja Altimus Building for more than Rs 300 crore. Construction is scheduled to be finished in two years.

Over three acres of the project’s space are expected to be used for leasing out more than one million square feet of space.

According to the documents, the premises and the ODU (outdoor unit) space have a first-year lease rent of Rs 325 per sq ft, which will rise by 4.25 percent annually.

Approximately Rs 84 million, or three months’ worth of rent for the office space and outdoor unit space for the first year of the term, must be paid to the landlord within 21 working days of the execution date.

JLL and K Raheja Corp, the two transaction advisors, declined to comment. We are anticipating Morgan Stanley’s response to our inquiries.

“As corporations shifted from Nariman Point, BKC (Bandra Kurla Complex) has become the front office hub over the past few years. This was primarily brought on by more contemporary structures and better access to human resources. Worli Micro Market was always an alternative, especially at relatively lower rents, thanks to the Bandra-Worli Sea Link. 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 center (GIC) operations to a single campus in the city.

According to a recent report, office space absorption reached 40.6 million square feet during Q1–Q3 2022, a twofold increase from the same period in 2021, when lockdowns were experienced due to COVID-19. Leasing is anticipated to reach 50 million square feet across the top six cities.

Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai, and Pune were among the top six cities.

A spillover in demand over the previous two years is what has caused the leasing boom. Occupiers are now even more optimistic about leasing space than they were in 2020 and the first half of 2021. While hybrid working is still the norm, occupiers are still willing to lease brand-new, large spaces, according to a Colliers India report.