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Something brewing: Starbucks takes full-floor office at Knotel’s newest location

Flexible office startups compete over corporate tenants

Amol Sarva, Starbucks' Kevin Johnson and 72 Madison Avenue (Credit: Jhila Farzaneh for The Real Deal and Starbucks)
Amol Sarva, Starbucks' Kevin Johnson and 72 Madison Avenue (Credit: Jhila Farzaneh for The Real Deal and Starbucks)

Starbucks is opening a full-floor office at Knotel’s newest location at 72 Madison Avenue.

Knotel, a flexible office-space provider, inked a 20,000 square-foot lease for four full floors at the Moinian Group-owned building. The company said Thursday that it already found four full-floor subtenants, meaning the location will open 100 percent occupied. Aside from Starbucks, Sequoia Consulting Group is also taking a floor.

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Knotel and its rivals in the flexible office sector, such as WeWork and Industrious, increasingly compete over corporate customers. Last year, WeWork subleased its entire location at 88 University Place to IBM. The company claims so-called enterprise customers now account for more than 25 percent of its membership.

Knotel, which raised $25 million in a Series A round last year, has been expanding rapidly and now occupies over 700,000 square feet in New York and San Francisco. The company is also a tenant at another Moinian-owned building, 55 West 21st Street, in Chelsea.

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