Office Startup Knotel Takes Two Floors at NoMad Office Building
Knotel signed a 10-year deal for the entire sixth and ninth floors at the 12-story, 102,552-square-foot building between East 26th and East 27th Streets, just one block from Madison Square Park.
The tenant’s lease started this month, according to a press release from landlord ATCO Properties & Management provided to CO. A Knotel spokeswoman said the company plans to occupy one of the floors immediately while opening the other floor for business sometime next year.
Asking rent in the transaction was $62 per square foot. ATCO’s Kate Goodman represented the landlord in-house, while Knotel’s Eugene Lee represented the tenant in-house.
Knotel has sought to grow its presence in recent months on the back of a $25 million Series A funding round, and now operates more than 20 locations across Manhattan and Brooklyn. (Disclosure: Observer Capital, led by Observer Media Publisher, Chairman and Chief Executive Officer Joseph Meyer, is among Knotel’s investors.)
The officer provider, which arranges short-term or rolling lease agreements with small-to-midsized businesses to occupy its spaces, has particularly looked to expand in the popular Midtown South office market, such as the areas surrounding Union Square and Madison Square Park.
“Knotel is growing rapidly to meet customer demand,” Knotel’s Lee told CO in a statement. “We’ve more than tripled in size since the beginning of the year, and will continue to expand to provide companies with the flexible headquarters they demand.”
In a statement, ATCO’s Goodman said the transaction “speaks volumes about the emergence of 373 Park Avenue South as a destination for TAMI [technology, advertising, media and information] companies.”
Major tenants at the property include marketing technology firm DataXu, French baked goods purveyor Maison Kayser and, interestingly, Neuehouse—a coworking firm that, like Knotel, specializes in providing office space to emerging companies (though Neuehouse’s space functions as its corporate headquarters only). Popular Mexican restaurant Dos Caminos occupies the building’s ground floor.