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New York

Knotel on the verge of deal to lease the entire Flatiron building

Flex office startup beat out The We Company and UK-based The Office Group for trophy location

From left: WeWork’s Adam Neumann, the Flatiron Building at 175 5th Avenue, Knotel's Amol Sarva and The Office Group’s Olly Olsen (Credit: Getty, Pixabay, and Twitter)
From left: WeWork’s Adam Neumann, the Flatiron Building at 175 5th Avenue, Knotel's Amol Sarva and The Office Group’s Olly Olsen (Credit: Getty, Pixabay, and Twitter)

Knotel, the flexible office startup that aims to rival WeWork, is nearing a deal to lease the iconic Flatiron building.

Amol Sarva’s company is preparing to sign a long-term lease for the 22-story building, which it plans to open as one of its flexible-office locations either later this year or in 2020, the Financial Times reported.

The building’s landlord, GFP Real Estate, denied that a deal was “imminent” at the property, and declined to comment further. Knotel did not respond before deadline.

The deal, if completed, marks the end to a months-long battle for the property.

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The We Company and UK-based Office Group were known to be in the running to take the Midtown South building, in what would have been a sparkling jewel for any co-working company.

The building’s current tenant, MacMillan Publishing is relocating later this year to 120 Broadway.

Elsewhere, Knotel has been busy inking deals. The company has signed 160,000 square feet of space in New York over the past month.

And the company’s competitors have been busy too. Industrious said it signed three new lease locations.

And Spaces, the Dutch co-working firm owned by IWG (formerly Regus), recently announced an 84,000 -square-foot lease at 31 Penn Plaza.  The We Company also expanded its HQ By WeWork service for mid-sized tenants, announcing four new Manhattan sites. [FT] — David Jeans

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Commercial Real EstateFlatiron BuildingKnotel