The Real Deal New York

ZocDoc looks to fill prescription for a bigger office

$1.8B health tech “unicorn” in the market for more than 100K sf

February 15, 2016 06:00PM
By Rich Bockmann

ZocDoc founders Oliver Kharraz and Cyrus Massoumi with 568 Broadway

ZocDoc founders Oliver Kharraz and Cyrus Massoumi with 568 Broadway

Newly minted “unicorn” ZocDoc is looking to spend some of its recent $130 million cash infusion on new digs.

The eight-year-old company, which helps connect patients with doctors online, is rapidly outgrowing its Soho headquarters and is scouring the market for more than 100,000 square feet, sources told The Real Deal. Among potential destinations is L&L Holdings’ 195 Broadway in Lower Manhattan, though those talks couldn’t be independently confirmed.

Cushman & Wakefield’s Sean Black is leading the search, according to sources. The broker declined to comment.

After raising a $130 million Series D round in August, ZocDoc was valued at $1.8 billion, making it the fourth most-valuable New York-based tech startup, behind WeWork, Vice Media and Blue Apron, according to data from CB Insights cited by Crain’s.

Over the past couple of years, ZocDoc has mushroomed at its home at Allied Partners’ 568 Broadway where it’s gone from about 12,000 square feet to a footprint of roughly 80,000 square feet.

L&L has a good strike rate with tech and media tenants. At 114 Fifth Avenue, for example, it’s managed to attract the new technology divisions of Mastercard and Capital One, as well as Mashable and Gawker Media. At 195 Broadway, advertising technology company Rocket Fuel recently took 42,000 square feet on the building’s 10th Floor, where the asking rent was $55 per square foot.

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