Conduct AI, a London-based artificial intelligence company that develops enterprise software, is establishing its first US presence with a new office lease in Manhattan's SoHo district. The expanding firm has signed a lease for 6,705 square feet, taking the entire third floor of 140 Crosby Street. The property is owned by Capstone Equities, Rugby Realty and Republic Investment Company, as announced by broker JLL, which represented the landlord.
JLL did not immediately provide details regarding the lease term or rental rate. Asking rents in the building, which the landlord acquired in May for $51.4 million from an entity affiliated with Madison Capital, range from $150 to $165 per square foot, according to JLL.
Attractive Location for Growth
Daven Roshan, Director of Acquisitions at Capstone Equities, stated: “Signing a lease with a fast-growing company like Conduct AI as our first new tenant underscores the appeal of 140 Crosby Street and the type of company it attracts. With a dedicated new ownership, a clear plan for the asset, and a strong partnership with JLL, we are executing a focused leasing and marketing strategy for a building that offers tenants modern, purpose-built office space at a scale that still feels intimate and distinctly SoHo.”
For the landlord, the transaction was handled by Clark Finney, Alex Riguardi and Dana Goldman of JLL, while Max Mond and John Brennan of Savills negotiated on behalf of the tenant. Conduct AI was founded in 2024 and raised $60 million in its Series A funding round in June. The new office in SoHo will accommodate over 60 employees.
Strategic Office Space Choice
Max Mond of Savills commented on the tenant's requirements: “Conduct AI approached this search with a clear objective: a workspace that matches the calibre of their team and supports their next phase of growth. Capstone’s vision for 140 Crosby Street and the way they positioned the building set it apart from any comparable property we evaluated in this submarket. The result is a headquarters that enhances Conduct AI’s brand and culture and improves its ability to recruit and retain the best talent in artificial intelligence.”
The six-storey, 34,500-square-foot building, also known by the addresses 606 Broadway and 19 East Houston Street, was developed by Madison and Vornado Realty Trust in 2019. The leasing of the Class A office building was initially sluggish, which led to the developers offering it for sale for $100 million five years after completion. Nevertheless, the property managed to attract retail tenants such as Citizens Bank and JBL Electronics, according to JLL.
