Knotel Signs 28,820 SF Lease at 5 Hanover Square
The growing flexible office space provider will occupy two floors in CIM’s downtown office tower.
NEW YORK CITY—Knotel has signed a lease for 28,820 square feet at the CIM Group’s office tower at 5 Hanover Square in Lower Manhattan. The workspace provider will occupy the entire 17th and 18th floors of the 25-story, 338,000 square-foot building, which also has the address of 66 Beaver St., before the end of the year.
Over the last several weeks the WeWork competitor has signed nine leases totaling more than 70,000 square feet throughout Manhattan. Its New York City portfolio totals 1.5 million square feet.
The CIM Group purchased 5 Hanover Square, that was originally constructed in 1962, from Savanna in August 2013 for $104 million, according to Real Capital Analytics.
Office leasing is going strong in Manhattan, with the third quarter activity 55.4% above Manhattan’s five-year historical average and 48.5% above its 10-year average, according to Colliers International’s recently released report. Co-working and flexible office spaces are continuing to gain ground. The brokerage and advisory firm reported more than 930,000 square feet of deals by co-working companies increased the FIRE sector to a 50% industry share in Midtown South.
Elie Reiss of Skylight Leasing represented Knotel in the 5 Hanover Square transaction. Michael Rizzo, Adam Leshowitz and Robert Wizenberg of CBRE represented the CIM Group.