Morgan Stanley Advantage Services is expanding its presence in Bengaluru with an additional 1.2 mn sq ft of captive campus.
The new space is expected to come up on the Outer Ring Road, Bengaluru. The financial services firm is in talks with a large office space development firm in the city. Once ready, the campus will serve 12,000 employees for the company.
Globally, Morgan Stanley positions its Indian operations as a critical component of its service delivery mode, capable of accommodating around 12,000 employees, signifying the firm’s commitment to leverage India’s talent and cost advantages.
“Morgan Stanley Advantage Services’ expansion in Bengaluru, coupled with its relocation to a larger headquarters in Mumbai, reflects the firm’s commitment to strengthening its presence in India. These moves are strategic efforts to align with the country’s dynamic economic landscape and to support the company’s growing operations in the region,” said a person aware of the deal.
This facility is among Morgan Stanley’s the largest offices outside the United States, underscoring India’s strategic importance in the company’s global operations. By enhancing its presence in key Indian cities like Bengaluru and Mumbai, Morgan Stanley aims to support its global business units more effectively, ensuring seamless service delivery and operational excellence across its worldwide network.
Morgan Stanley did not reply to an email sent by ET.
In August 2023, the company renewed its lease for approximately 136,000 square feet in the Ecoworld campus, a prominent commercial hub in the city. The leased property, located in Ecoworld on Outer Ring Road, was secured from RMZ Corp for 120 months with a 15% rent escalation every three years. The company is set to pay a rent of ?116 per square foot during the lease tenure, as per the lease renewal document shared by Propstack.
“This recent renewal and now the expansion not only reflects Morgan Stanley’s confidence in the Indian market but also aligns with the city’s burgeoning status as a global IT and financial services hub,” said a person aware of the deal.
In addition to its Bengaluru operations, Morgan Stanley also expanded its footprint in Mumbai.The new premises, located in the Altimus Worli office block, span approximately 86,000 square feet, a significant increase from the current 65,000 square feet space in Blackstone-owned One World Center.
The Altimus Worli office block is rapidly becoming a hub for major financial institutions. Goldman Sachs, SoftBank Group, and domestic lender Axis Bank also have offices in the area, highlighting the region’s appeal to prominent players in the financial sector. Morgan Stanley’s relocation to this area not only signifies its expansion but also its commitment to being at the centre of India’s financial ecosystem.
A May report from the bank’s research division highlighted that India has transformed significantly in less than a decade, bolstering its markets and economy. By investing in larger and more strategically located office spaces, Morgan Stanley is positioning itself to capitalize on the opportunities presented by India’s growth.
As per the report, Bengaluru recorded the highest office leasing in the country at 21.8 mn. sq. ft. in CY 2024 ahead of 9 top cities in the country. The city also recorded the highest office space supply at 14 mn. sq. ft. in CY 2024 across the cities. Bengaluru accounted for over 27% of pan-India office leasing and recorded the highest share of Global Capability Centres (GCC) leasing.
“We foresee global firms expanding their operations in India, attracted by the nation’s skilled workforce and favourable business environment. Alongside this, sectors such as technology, BFSI, and emerging markets would further influence office leasing trends. The growing focus on sustainability and green-certified office spaces would drive the development of investment-grade assets, reinforcing long-term market stability and growth,” said Ram Chandnani, managing director, Advisory & Transaction Services, CBRE India.
India’s global capability centres (GCCs) are projected to grow from a market size of $64.6 billion in 2024 to between $99 billion and $105 billion by 2030, reflecting the nation’s evolution into a hub for sophisticated corporate operations. This growth is attributed to India’s skilled talent pool and established offshoring ecosystem, making it an attractive destination for multinational corporations.
