A man-made intelligence startup is taking an enormous chunk of workplace area at SL Inexperienced and Prudential Monetary’s 11 Madison Avenue, because the sector continues to snap up prime Manhattan workplace area.
Brooklyn-based agency Clay signed a 10-year lease for 163,000 sq. ft on the 2.3 million-square-foot tower, the owner introduced. The deal brings the constructing to 100% occupancy.
The nine-year-old firm will occupy the whole 14th and sixteenth flooring and a part of the fifteenth flooring of the 30-story constructing, which sits on a full block between Park Avenue South and Madison Avenue and East twenty fourth and twenty fifth streets. The asking lease was not disclosed.
The information comes as SL Inexperienced reaches full occupancy at one other property on Madison Avenue. Harvey AI added greater than 90,000 sq. ft on the landlord’s One Madison Avenue, bringing the 1.4 million-square-foot Class A workplace tower to full occupancy lower than three years after it opened.
A Newmark staff of Aaron Ellison, Derek Feinman and Adam Spector represented Clay in Clay’s deal, whereas Newmark’s Brian Waterman, Brent Ozarowski and Eric Harris represented the owner.
The AI gross sales platform will relocate from Kaufman Organization’s 111 West 19th Street. Clay CEO Kareem Amin mentioned the brand new location displays the agency’s fast enlargement. The corporate introduced in August that it had raised $100 million at a $3.1 billion valuation.
The lease is the most recent giant workplace dedication from an AI firm.
AI leasing in Manhattan has ramped up sharply lately. In 2024, AI corporations signed roughly 325,000 sq. ft of workplace area, with most offers falling within the 5,000 to 25,000-square-foot vary, mentioned Franklin Wallach, managing director of analysis and enterprise growth at Colliers.
By 2025, leasing had greater than doubled to about 810,000 sq. ft, with a number of bigger offers coming into the combo, together with Harvey AI’s 93,000-square-foot lease at One Madison Avenue (the place the corporate is now doubling its footprint, per Commercial Observer) and Scale AI’s 80,000-square-foot sublease at 1 World Commerce Middle.
The momentum has carried into 2026. In simply the primary few months of the yr, AI companies have already leased greater than 500,000 sq. ft, in response to Wallach.
Midtown South stays the epicenter of the AI leasing increase, however it’s spreading to different submarkets. SL Inexperienced acquired 11 Madison from the Sapir Group and CIM Group in 2015 for $2.6 billion. A yr after the acquisition, SL Inexperienced offloaded a 40 percent stake to Prudential’s PGIM Actual Property for $480 million.
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