Morgan Stanley (NYSE:MS) on Tuesday announced a new U.S. industrial real estate acquisition through its investment management arm.
Morgan Stanley Investment Management, through funds managed by Morgan Stanley Real Estate Investing (MSREI), agreed to buy a premier advanced manufacturing property in Fremont, California, for $110 million.
The site comes with a long-term net lease to Western Digital, a global data storage and infrastructure leader.
The acquisition reflects MSREI's focus on high-quality industrial and innovation-related real estate. MSREI said the Bay Area facility fits its strategy of investing in core innovation corridors with strong infrastructure and talent pools.
The advanced manufacturing asset spans roughly 290,000 square feet. The site's power capacity is high relative to that of standard industrial properties in the region, making it attractive to technology and manufacturing tenants.
Portfolio Expansion
With this deal, MSREI said it acquired about $1.5 billion in U.S. industrial assets in 2025.
The firm's U.S. industrial portfolio now exceeds 75 million square feet.
Will Milam, head of U.S. investments at MSREI, said the purchase shows confidence in the region's manufacturing ecosystem. He cited constrained supply and durable demand for advanced R&D and manufacturing facilities.
Earnings Snapshot
Earlier this month, the U.S. bank reported revenue of $17.89 billion, up 10% year over year, beating the consensus of $17.77 billion.
The firm's 2025 expense efficiency ratio was 68% compared to 71% a year ago, demonstrating operating leverage while continuing to invest in businesses.
"All of our investments are working," CFO Sharon Yeshaya said in an interview with Bloomberg, pointing to share gains in both advisory and debt capital markets. As for data centers specifically, "the hyperscalers are looking for access to capital markets, and we're there to provide those structured solutions."
MS Price Action: Morgan Stanley shares were down 3.45% at $182.57 at the time of publication on Tuesday, according to Benzinga Pro data.
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