An artificial intelligence-based insurance technology company has signed a sublease for office space in Hudson Square. Governor Kathy Hochul highlighted the future economic benefits of this deal, such as the creation of 205 new jobs, according to an announcement on Wednesday.
Although WithCoverage is only taking 17,663 square feet at GFP Real Estate's 200 Varick Street building, the company plans to invest USD 25 million in research and development ventures in New York City over the next five years, Hochul explained. GFP Real Estate did not provide details on the lease term or the asking rent for the building. However, the average office space rent in Midtown South was USD 85.73 per square foot in the second quarter of 2026, according to a CBRE report.
New York's Appeal to Technology Companies
Governor Kathy Hochul stated that New York continues to attract the world's fastest-growing technology companies because the city offers the talent, innovation ecosystem and business environment needed to succeed. WithCoverage's decision to expand in New York City and create over 200 high-quality jobs is another example of the strategy to foster future industries and strengthen the economy.
WithCoverage's new office in Hudson Square complements its existing offices at 25 East 21st Street. Adam Spector and Derek Feinman of Newmark represented WithCoverage in this sublease transaction.
Momentum in the Office Market Despite Criticism
While some prominent business figures, including Ken Griffin of Citadel and Steve Roth of Vornado Realty Trust, recently criticised the policies of Mayor Zohran Mamdani and Governor Hochul, arguing that the pied-à-terre tax could drive businesses out of the city, the office market as a whole appears to be maintaining momentum. Data from Colliers shows that office leasing velocity in Manhattan increased by 22 percent from June to July and by 28.4 percent year-on-year to July 2025.
Max Brenner, CEO and founder of WithCoverage, commented that New York is where technology and people converge, from insurance experts to lawyers, AI engineers and product designers. He recalled that two years ago there were only a handful of employees in one office; today, the majority of the team calls New York home, and with this expansion, they are formally opening their new headquarters.
- —Chelsea Piers Management leased 48,833 square feet on the ground floor of 200 Varick Street in October 2025.
- —Architectural Partnership Atelier expanded its space to 5,130 square feet in May 2025.
- —The building is thus an attractive location for various companies.
