Conduct AI Takes 7K SF at Capstone’s 140 Crosby Street for First U.S. Office

A London-based artificial intelligence firm developing enterprise software is establishing its first U.S. office presence in Manhattan’s SoHo neighborhood, Commercial Observer has learned.

The rapidly growing Conduct AI has signed a 6,705-square-foot lease on the entire third floor of 140 Crosby Street, owned by Capstone Equities, Rugby Realty and Republic Investment Company, according to landlord broker JLL.

JLL did not immediately disclose the length of the lease or the rent involved. The asking rents at the building, which the landlord acquired in May for $51.4 million from an entity tied to Madison Capital, range between $150 to $165 per square foot, JLL said.

“Signing a fast-growing company like Conduct AI as our first new tenant speaks to the appeal of 140 Crosby and the kind of companies this property attracts,” Daven Roshan, director of acquisitions for Capstone Equities, said in a statement. “With committed new ownership, a clear plan for the property and a strong partnership with JLL, we’re bringing a focused leasing and marketing strategy to a building that offers tenants a modern, purpose-built office at a scale that still feels intimate and distinctly SoHo.”

JLL’s Clark Finney, Alex Riguardi and Dana Goldman represented the landlord in the transaction, while Max Mond and John Brennan of Savills negotiated on behalf of the tenant.

Founded in 2024, Conduct raised $60 million in its Series A funding round in June and will accommodate more than 60 employees at its new SoHo office.

“Conduct approached this search with a clear objective: a workplace that reflects the caliber of its team and supports its next phase of growth,” Mond said in a statement. “Capstone’s vision for 140 Crosby and the way they have positioned the building set it apart from every comparable asset we evaluated in the submarket. The result is a headquarters that reinforces Conduct’s brand and culture and strengthens its ability to recruit and retain the best talent in artificial intelligence.”

Madison and Vornado Realty Trust developed the six-story, 34,500-square-foot building with alternative addresses of 606 Broadway and 19 East Houston Street in 2019. But lease-up at the Class A office building was slow, leading to the developers listing it for $100 million five years after completion.

But it has managed to draw retail tenants Citizens Bank and JBL Electronics, according to JLL.

Mark Hallum can be reached at mhallum@commercialobserver.com.