Representative image.
In one of the largest office space pre-lease deals, US financial services major JP Morgan has picked up over 116,210 sq ft of office space in Japanese conglomerate Sumitomo鈥檚 commercial tower in Mumbai鈥檚 business district Bandra-Kurla Complex (BKC), through a long-term lease tenure of 10 years.The lease is structured with an initial 10-year license term, with the option to renew for up to three additional terms of five years each, extending the total duration to 25 years.The rental outgo for this lease is estimated to be nearly Rs 1,000 crore in the first 10 years alone and total rentals over the full 25-year term is expected to exceed Rs 2,500 crore, making this one of the most significant long-term commercial commitments in the country鈥檚 most expensive property market.The office, spread across the 11th and 12th floors of the under-construction building in BKC鈥檚 G Block, has been leased from Goisu Realty, Sumitomo Realty & Development Co鈥檚 Indian subsidiary, showed documents accessed through realty data analytics firm Propstack.鈥淭he new office is expected to house JP Morgan鈥檚 India headquarters,鈥 said persons with direct knowledge of the development.Live EventsAs per lease agreement, JP Morgan India will pay a monthly rent of Rs 6.91 crore, based on a carpet area rate of Rs 595 per sq ft, with an escalation of 15% every three years. The company has paid a security deposit of Rs 62.23 crore for the registration of the transaction that took place on June 12.Sumitomo is developing a commercial tower with 6 basements, a ground floor and 12 upper floors on a 3-acre prime land parcel it acquired through a long-term lease agreement with Mumbai Metropolitan Region Development Authority (MMRDA) for over Rs 2,067 crore last year.Goisu Realty has picked up this land parcel through an 80-year lease agreement. It emerged the highest bidder for the plot in 2019 but conclusion of the deal took more than four years.ET鈥檚 email queries to JP Morgan and Sumitomo Realty & Development Co. remained unanswered until the time of going to press.In August 2022, JP Morgan India leased over 1.16 million sq ft office space at Nirlon Knowledge Park in Goregaon suburb of Mumbai through a long-term pact for over 10 years with an option of extending the same by additional 10 years.This was one of the largest commercial real estate transactions concluded by any multinational company anywhere in India.India continues to cement its status as a strategic hub for American corporations, with US firms steadily expanding their office presence across the country. From Mumbai to Bengaluru, American occupiers are actively shaping the landscape of India鈥檚 commercial real estate sector. (You can now subscribe to our Economic Times WhatsApp channel)
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onJP Morgan leasing office in MumbaiBKC office space leaseSumitomo Realty commercial towerMumbai commercial real estateUS firms expanding in Indiacommercial real estate transactionsIndia headquarters JP Morgan(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless