Instacart Takes 21K SF From Startup Bizzabo at 50 West 23rd Street
By Abigail Nehring November 9, 2023 2:35 pm
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A grocery delivery company is parking its cart in Chelsea.
San Francisco-based Instacart is expanding its New York office footprint by taking 21,000 square feet on the ninth floor of 50 West 23rd Street, Commercial Observer has learned. The deal is a sublease from software startup Bizzabo, which is two years into its five-year lease with landlord Two Trees Management.
Sources with knowledge of the deal did not disclose the terms of the sublease, but average asking rent in Chelsea was $82.08 in the third quarter of 2023, according to a Colliers report.
Instacart opened its first New York City office in 2015 at 580 Broadway in SoHo, taking 3,000 square feet in the 12-story building, CO previously reported. The company offers same-day delivery or pickup from hundreds of grocers and retailers using online ordering.
A spokesperson for Instacart wrote in an email that the move to the 13-story Chelsea building is an expansion and will support the company’s “robust employee presence” in New York.
Instacart uses a “flex-first model that allows employees to work from our offices, from home, or a mix of both,” the spokesperson added.
The company’s new Manhattan digs come on the tail of its debut on the Nasdaq in September. Instacart’s stock has declined about 9 percent since it launched, but was buoyed this week by its better-than-expected third-quarter earnings report released Wednesday. Instacart shares opened at $27.46 Thursday morning.
Bizzabo is a business-to-business company that develops software for managing conferences, events and webinars. Bizzabo did not respond to a request for comment.
Two Trees declined to comment on the deal. It’s unclear who brokered the sublease for either side.
Abigail Nehring can be reached at anehring@commercialobserver.com.
