DoorDash Takes 115K SF at 200 Fifth Avenue
By Abigail Nehring January 5, 2024 12:53 pm
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Food delivery app DoorDash has moved to a direct deal and doubled the size of its office at 200 Fifth Avenue, Commercial Observer has learned.
DoorDash signed an 11-and-a-half-year lease for 115,382 square feet on the eighth and ninth floors of the 14-story office building, a spokesperson for landlord Boston Properties (BXP) said.
The spokesperson did not disclose the asking rent, but the average asking rent in Midtown South was $81.35 per square foot in the fourth quarter of 2023, according to a Colliers report.
DoorDash was founded in 2013 and holds the largest market share of meal delivery services in the U.S., according to Bloomberg Second Measure.
The San Francisco-based company tripled its New York footprint in March 2023 when it subleased 57,691 square feet on the eighth floor of the Fifth Avenue building from review app Yelp, moving out of its old digs two blocks away on the fourth floor 125 West 25th Street. The new direct deal doubles DoorDash’s office footprint.
“Since opening, we’ve heard great feedback from employees and consistently seen very high utilization of the space,” DoorDash real estate director Ari Sacharow said in a statement. “We are excited to expand to the ninth floor and provide even more opportunities for in-person meetings, on-sites, and collaborative experiences.”
Yelp, for its part, is getting out of the New York office market entirely. The 20-year-old company closed its Fifth Avenue space and its much larger 192,000-square-foot outpost at 11 Madison Avenue in 2022 after CEO Jeremy Stoppelman announced his decision to embrace fully remote work.
Over the following two years, Yelp shuttered underutilized offices in Chicago, Washington, D.C., Phoenix, and Hamburg, Germany.
A spokesperson for Yelp said the company has a single remaining U.S. office in San Francisco, as well as locations in Toronto and London.
Boston Properties’ Hilary Spann said in a statement that DoorDash was drawn to the “inspired work environment, historic architecture, and dynamic neighborhood.”
“The space offers opportunities for dynamic companies to thrive and enjoy Midtown South,” Spann added.
Cushman & Wakefield (CWK)’s Bruce Mosler, Ethan Silverstein, Anthony LoPresti and Bianca Di Mauro represented Boston Properties, while Adam Ardise and Greg Pickett, also of C&W, arranged the deal for DoorDash.
A spokesperson for C&W declined to comment.
Other tenants in the building at the corner of Broadway and West 23rd Street include ad agency Grey Advertising, fine jeweler Tiffany & Company. Italian market chain Eataly occupies the first-floor retail space.
The DoorDash deal brings the building to 100 percent leased, according to Boston Properties.
Abigail Nehring can be reached at anehring@commercialobserver.com.
