Global investment bank Morgan Stanley has acquired the biggest deal in Goregaon, Mumbai.

Morgan Stanley, the global investment bank, has been taking up almost 800,000 sq. ft of office space at Mumbai’s suburb in Oberoi Realty’s Commerz project; it is one of the largest built-to-suit office space deals in the country. The contract is for 15 years, which includes a fixed term of 10 years and an option to extend the remaining period. The lease rental for space is fixed at Rs 120 per sq ft, which means the annual lease amount would be over Rs 115 crore.

The agreement has also a reset rental clause which starts with a 10% upward revision for every three years.

The deal is not only significant for its scale but because Morgan Stanley has dedicated itself to the under-construction office space as opposed to the usual trend of renting ready properties.

“Morgan Stanley plans to integrate its back-office activities in an area in this office space spread over 8 floors of the upcoming 40-storey tower.” said one of the spokesperson.

The commercial tower will be completed in the next couple of years and will be operational from 2023, sources said, adding that the developer will provide this office with exclusive entry and exit points.

The head office of India’s major financial services is located in One Indiabulls Centre, in Prabhadevi, central Mumbai, and its three back offices are in the suburb area of Goregaon.

Morgan Stanley has more than 4,000 employees in five offices, including four in Mumbai and one in Bengaluru, and it has been in India for 25 years.

Most commercial property leases are generally entered upon completion of the property and are ready to be occupied. Some agreements are however concluded during the construction of a property in rare instances and qualify as pre-commitments.

In the light of rising rent rates, occupiers are increasingly looking for their portfolios to be future-proof to secure themselves against rental escalations in different cities by pre-leasing them. Tech and BFSI companies, along with versatile space operators, have mainly been engaged in pre-commitment operations.