Betterment Subleases 113K SF From Noom at Five Manhattan West
By Abigail Nehring March 7, 2024 12:30 pm
reprints
Weight-loss app Noom will shed its space at Five Manhattan West to make way for an expanding fintech firm, Commercial Observer has learned.
Financial services company Betterment signed a sublease with Noom for 113,422 square feet at Brookfield (BN) Properties’ 1.6 million-square-foot building on 10th Avenue between West 31st and West 33rd streets, according to sources with knowledge of the deal and an office leasing report by Colliers.
The length of the sublease and other terms of the deal are unclear, but average asking rent for office space in Midtown South was $81.16 per square foot in February, according to Colliers.
A spokesperson for Noom did not immediately respond to a request for comment. The digital health company has been in the building since 2020, when it subleased about 113,000 square feet on the 11th floor from advertising agency R/GA, The Real Deal reported.
That deal relocated and expanded Noom’s headquarters from Chelsea, and it planned to add about 100 new employees to its 200-person staff at the office, the company told Crain’s New York Business.
Betterment, for its part, currently lists its office at 27 West 23rd Street in Chelsea. It has hopped between several buildings on the same block over the past decade, signing a five-year lease for 16,909 square feet at 53 West 23rd Street in 2016, while also maintaining a larger office at 61 West 23rd Street, as CO previously reported.
It’s unclear which spaces on West 23rd Street Betterment still occupies, but a spokesperson for the firm said it will leave Chelsea to relocate its headquarters to Five Manhattan West later this year when its current lease expires.
“We are moving to a new space that better suits our future needs,” the spokesperson said in an email.
The company was founded in 2010 and offers financial advice and retirement solutions to small businesses and retail investors, according to its website.
Cushman & Wakefield (CWK)’s Michael Mathias arranged the deal for both sides and declined to comment.
Brookfield’s in-house leasing team for the 16-story office building, which has an alternative address of 450 West 33rd Street, did not respond to requests for comment. The property is one of four office buildings totaling 6 million square feet Brookfield owns at its 8-acre Manhattan West campus, according to its website.
Other tenants at Five Manhattan West include grocery chain Whole Foods, exercise equipment company Peloton, JP Morgan Chase, and Amazon.
The deal comes as sublet availability in Midtown South reached its lowest level in 17 months in February, with 7.4 million square feet of space available, a little over a third of Manhattan’s total 20.1 million square feet of sublet space currently on the market.
Abigail Nehring can be reached at anehring@commercialobserver.com.
