Flexible office space provider Knotel is moving onto its rival’s turf, signing a 17,000-square-foot lease in a building that is already the corporate home of co-working company Neuehouse.
The deal at ATCO Properties’ 373 Park Avenue South has a 10-year term, Commercial Observer reported. Both sides were represented in-house. Asking rent on the deal was $62 a square foot.
Knotel, which raised $25 million in a Series A funding round in February, takes office space under lease deals or management agreements with landlords, builds it out and sublets it to companies under flexible terms. Unlike WeWork, Knotel’s spaces look different across its various locations, in part because it uses a lighter touch on its buildouts. It also doesn’t cater to entrepreneurs or freelancers in search of a desk, instead focusing on small and mid-sized firms that want an entire office under a short-term deal.
Other tenants in the building include tech firm DataXu and French bakery chain Maison Kayser.
In May, Knotel signed deals for 93,000 square feet of office space across five properties. The firm plans to expand its footprint to 1 million square feet by the end of the year. [CO] — Konrad Putzier