Modal Labs, a technology company specialising in cloud infrastructure for artificial intelligence, has signed a substantial lease for 156,763 square feet of office space in New York's Tribeca district. The property at 32 Avenue of the Americas forms part of the portfolio of real estate firm Rudin, led by co-chief executive officers Samantha Rudin-Earls and Michael Rudin. These details were disclosed in property advisory firm CBRE's New York office market report for October and confirmed by informed market sources.
The technology company currently maintains its New York headquarters at 233 Spring Street in the Hudson Square neighbourhood. According to the company, the relocation to the new site in Tribeca is scheduled for mid-2027. Details regarding the specific terms of the contract, the precise duration of the lease and the agreed rents have not been made public. Neither Modal Labs nor Rudin commented immediately on the details of the agreement. It also remained unclear which advisors or brokerage firms represented the tenant and landlord.
Market environment and rents in Lower Manhattan
For pricing orientation, CBRE's report refers to the broader market environment: the average rent for office space in the Lower Manhattan submarket stood at $62.68 per square foot in October. In terms of floor space, the letting to the growth company ranks among the substantial transactions of the autumn in this New York market segment.
Modal Labs was founded in 2021 by business partners Erik Bernhardsson and Akshat Bubna. Alongside its headquarters on the American east coast, the infrastructure firm operates further offices in San Francisco and Stockholm, Sweden. With this upcoming relocation, the software company is significantly expanding its footprint in New York City.
History and tenant profile of the property
The building at 32 Avenue of the Americas is situated one block south of Canal Street and has a rich history as a telecommunications hub. The owner company Rudin acquired the prominent property from the AT&T group in 1999. Other occupiers based in the building include creative production company Industrial Color and IT infrastructure provider Lumen Technologies.
