AI Insurance Firm WithCoverage Signs 18K-SF Lease at 200 Varick Street
By Mark Hallum August 12, 2026 11:31 am
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An artificial intelligence-powered insurance technology company subleasing space in Hudson Square has the attention of Gov. Kathy Hochul.
While WithCoverage is only taking 17,663 square feet at GFP Real Estate’s 200 Varick Street, Hochul emphasized future economic benefits of the deal, such as the creation of 205 new jobs, according to a Wednesday announcement.
WithCoverage also plans to invest $25 million in research and development operations in New York City over the next five years, according to Hochul.
GFP Real Estate did not immediately disclose the length of the lease or the asking rent for the building, but the average office asking rent in Midtown South was $85.73 per square foot in the second quarter of 2026, according to a report from CBRE.
It’s unclear who the sublandlord is, but WithCoverage’s new Hudson Square office will be in addition to its current offices at 25 East 21st Street.
“New York continues to attract the world’s fastest-growing technology companies because we have the talent, innovation ecosystem and business environment they need to succeed,” Hochul said in a statement. “WithCoverage’s decision to expand in New York City and create more than 200 high-quality jobs is another example of our strategy to grow the industries of the future while strengthening our economy today.”
Newmark‘s Adam Spector and Derek Feinman represented WithCoverage in the sublease deal.
Some prominent business leaders such as Citadel’s Ken Griffin and Vornado Realty Trust’s Steve Roth have been critical of Mayor Zohran Mamdani and Hochul’s policies of late, stating the pied-a-terre tax could drive businesses away from the city.
But overall, the office market does not seem to be losing steam.
Manhattan office leasing velocity rose 22 percent from June to July alone, and 28.4 percent year-over-year from July 2025, according to Colliers data.
“New York is where the best of technology and the best of people come together, from insurance experts and attorneys to AI engineers and product designers,” WithCoverage CEO and founder Max Brenner said in a statement. “Two years ago, there were only a handful of people in one office. Today, a majority of the team calls New York home, and with this expansion, we’re formally opening our new headquarters.”
Other tenants in WithCoverage’s new building at 200 Varick include Chelsea Piers Management, which took 48,833 square feet on the ground floor in October 2025, and Architectural Partnership Atelier, which expanded to 5,130 square feet in May 2025.
Mark Hallum can be reached at mhallum@commercialobserver.com.
