Knotel Expands Presence in Financial District Tower by 81K SF
Flexible-workspace provider Knotel will more than double its space inside a Financial District tower less than a year after it first moved in, Commercial Observer has learned.
Knotel signed a lease for 80,650 square feet on the entire seventh and eighth floors of 110 William Street between John and Fulton Streets, bringing its presence to 117,000 square feet in the 32-story building, a spokeswoman for Knotel said.
The Knotel spokeswoman declined to provide the terms of the deal, but CoStar (CSGP) Group data lists average asking rent in the building as between $40 and $48 per square foot.
Knotel first leased 35,848 square feet on the 17th floor of the tower in August 2018. It plans to move into the new office spaces in March 2020, according to the Knotel spokeswoman.
“As we’ve seen across the portfolio, interest in buildings and submarkets increases when Knotel is there,” Eugene Lee, Knotel’s chief investment officer, said in a statement. “With our existing floor already occupied by a client, we are pleased to add two more spaces at 110 William [Street].”
Greg DiGioia and Michael Morris of Newmark (NMRK) Knight Frank represented Knotel in the deal while colleagues Hal Stein, Todd Stracci and Travis Wilson brokered it for landlords Savanna and KBS Capital Advisors. A spokeswoman for NKF did not immediately respond to a request for comment.
Knotel recently announced that it has leased 1 million square feet around the world in the first quarter of this year. So far this year, the company has inked deals for 540,000 square feet in New York City, the spokeswoman said. (Disclosure: Observer Capital, led by Observer Media Chairman and Publisher Joseph Meyer, is a Knotel investor.)
Savanna and KBS bought the 928,181-square-foot 110 William Street from Swig Equities and the Dubai Investment Group for $261.5 million in 2014, as CO previously reported. In March, the owners landed a $349 million loan from Invesco Real Estate (IVZ) refinance the property.
Other tenants in the building include the New York City Department of Small Business Services, tech company Stack Exchange and Pace University.