With latest lease deal, Knotel now has about 400K sf in NYC

Company just took 28K sf in Chelsea
August 25, 2017 09:32AM

Knotel’s Amol Sarva and 114 West 26th Street

Office provider Knotel — which raised $25 million in February — inked a deal for 28,000 square feet in Chelsea amid its rapid expansion in Manhattan.

The company signed a lease with landlord Delta Enterprise Corp. for the second floor of 114 West 26th Street, a 13-story building where the asking rents were in the low $50s per square foot, Commercial Observer reported.

Knotel, which provides short-term and rolling leases to small and medium-sized companies, has been expanding rapidly in Midtown South on the heels of a Series A funding round that closed in February.  Last week, Knotel leased 17,000 square feet at 373 Park Avenue South, as well as 29,000 square feet at 137 Varick Street in Hudson Square. The company is also looking to expand in Midtown and Downtown — where it just leased 27,000 square feet at 40 Exchange Place in the Financial District.

Knotel, which operates 20 locations in Manhattan and Brooklyn, signs short-term leases with businesses. That’s unlike WeWork, which raised $4.4 billion from Japanese conglomerate SoftBank, which provides users with monthly memberships.

In all, Knotel has around 400,000 square feet of space in New York, where it’s tripled its size this year after raising a $25 million Series A funding round. “We’ve been busy,” said Eugene Lee, Knotel’s head of property acquisition and business development, told the CO. “We are obviously taking a lot of space and growing fast. We continue to speak with many owners about [taking] additional space and I think we will probably double our square footage again this year.” [CO]E.B. Solomont