OpenAI has agreed to lease a 90,000-square-foot office in Soho, Manhattan, according to a report from The Wall Street Journal, citing people familiar with the situation.
It is located at the Puck Building, which is owned by Kushner Companies and used for mixed-use, on Lafayette Street.
The property combines office with retail. Plus, penthouse condominiums are located at the top. A list of tenants includes Major Food Group, REI, NYU, Plaid, Cadre, and Thrive Capital, according to The Puck Building. Kushner first acquired the site in 1980.
This marks OpenAI's first office lease in New York City. Last month, the AI research firm expanded its presence in San Fransisco, with a massive 315,000-square-foot office lease. It was the largest lease in the city of 2024. The site, at 550 Terry A. Francois Boulevard, is just a block away from its 485,000 SF sublease it struck from Uber's property last year.
Office leasing demand in Manhattan has returned to pre-pandemic levels, according to a report from Savills. The 9.5 million square feet in the three months through September was the largest quarterly volume since the months ending December 2019. Blackstone commanded the biggest deal, thanks to the firm renewing a 1.06 million SF lease. Rents in Manhattan, meanwhile, slipped 0.9 percent to $75.91 per SF.
OpenAI started a new round of funding last month, setting its valuation at $150 billion.