The Real Deal New York

Knotel inks new 23K sf lease in Chelsea

Hotel has a seven-year lease for Savanna’s building at 31 West 27th Street
By Eddie Small | May 08, 2018 07:00AM

31 West 27th Street and Amol Sarva

Knotel has landed another new lease in New York City, grabbing 23,000 square feet of space in Savanna’s Chelsea building at 31 West 27th Street, according to sources familiar with the deal.

The flexible-office company and WeWork rival has signed a seven-year lease to occupy the fourth and 10th floors of the building. This marks its first deal with Savanna, which went into contract for the 144,000-square-foot building last May for $126 million.

Bizzabo, a Knotel client focusing on event software, will occupy one of the floors. Knotel has not disclosed the client that will occupy the other floor.

A CBRE team of Paul Amrich, Patrice Meagher, Neil King and Meghan Allen represented Savanna, and a Newmark Knight Frank team of Michael Morris and Greg DiGioia represented Knotel.

Knotel recently subleased 45,000 square feet of space at 360 Park Avenue from the software company Wyng, which is in turn moving into a smaller space Knotel leases at 55 West 21st Street. In January, it landed a 24,000-square-foot lease at 584 Broadway in Soho.

The company is now valued at $500 million and closed on $70 million in a Series B funding round in April. It has leased more than 1.1 million square feet in New York, San Francisco and London over the past two years and expects to double in size after its new funding.