Workspace Startup Knotel Leases Another 83K SF In Manhattan
Fresh from raising $70M in a Series B funding round, flexible office space provider Knotel has inked two Manhattan leases of more than 40K SF apiece.
The firm, founded by Amol Sarva three years ago, signed a lease for 40K SF at A & R Real Estate’s 20-story building at 105 Madison Ave. in NoMad, the company announced Wednesday. It also signed a deal to take 43K SF at HRC Corp.’s 156 Fifth Ave. in Flatiron.
In both leases, the firm will take three floors. Knotel has been rapidly expanding in the past 18 months. Earlier this month, it leased 23K SF at 31 West 27th St., a building owned by Savanna. Its other New York City locations include 13K SF at 224 West 30th St., a total of 10K SF at 102 Madison Ave. and 6K SF at 115 West 30th St.
"Landlords view Knotel as the preferred alternative for agile office, and would rather work with us than gamble on coworking firms that are desperate to get out of coworking,” Knotel's Global Head of Real Estate and Business Eugene Lee said in a statement. “Owners prefer to avoid the friction and risk of dealing with them — even when they offer to overpay — which is why we are closing increasingly large, competitive deals in prime markets."
Knotel, which markets itself as an alternative to the standard coworking model, raised $25M in Series A funding last year.
Its Series B last year, which raised $70M, was led by Newmark Knight Frank and The Sapir Organization, and included the Wolfson Group, The Moinian Group and Wainbridge Capital. It plans to double in size this year.
