AI startup Clay inks 163K sf lease at SL Green's 11 Madison

"Brooklyn-based firm Clay signed a 10-year lease for 163,000 square feet at the 2.3 million-square-foot tower, the landlord announced. The deal brings the building to 100 percent occupancy. The nine-year-old company will occupy the entire 14th and 16th floors and part of the 15th floor of the 30-story building, which sits on a full block between Park Avenue South and Madison Avenue and East 24th and 25th streets."

"AI leasing in Manhattan has ramped up sharply in recent years. In 2024, AI companies signed roughly 325,000 square feet of office space, with most deals falling in the 5,000 to 25,000-square-foot range, said Franklin Wallach, managing director of research and business development at Colliers. By 2025, leasing had more than doubled to about 810,000 square feet, with several larger deals entering the mix."

"The company announced in August that it had raised $100 million at a $3.1 billion valuation. The lease is the latest large office commitment from an AI company. Clay CEO Kareem Amin said the new location reflects the firm's rapid expansion."

Clay, a Brooklyn-based AI startup, signed a 10-year lease for 163,000 square feet at 11 Madison Avenue, a 2.3 million-square-foot tower jointly owned by SL Green and Prudential Financial. The company will occupy the entire 14th and 16th floors plus part of the 15th floor, bringing the building to full occupancy. Clay, valued at $3.1 billion after raising $100 million in August, is relocating from its previous location to accommodate rapid expansion. This lease exemplifies the broader trend of AI companies aggressively acquiring prime Manhattan office space. In 2024, AI firms leased approximately 325,000 square feet in Manhattan, with deals typically ranging from 5,000 to 25,000 square feet. By 2025, AI leasing more than doubled to 810,000 square feet, featuring several larger transactions.

Read at therealdeal.com