Moloco, the Silicon Valley ad-tech company that uses machine learning to power ad campaigns, has quietly signed a sublease for roughly 25,000 square feet at 2 Gansevoort in Manhattan’s Meatpacking District. The deal lands as a fresh wave of AI tenants is reshaping demand at the top end of the city’s office market this spring.
Moloco is subleasing about 25,000 square feet at Sage Realty’s 2 Gansevoort Street in the Meatpacking District from sublandlord Fortress Biotech and is relocating from Kaufman Organization’s 56 West 22nd Street in Midtown South, a company spokesperson said, as reported by The Real Deal.
The move lands in the middle of a broader rush for Manhattan space. JLL data show AI leasing is occurring at roughly twice last year’s pace, and average AI deal sizes have more than doubled, according to Bisnow. Some of those transactions are pushing trophy-floor pricing to levels not seen in several years as firms lock in space ahead of anticipated hiring waves.
A Meatpacking Address With History
2 Gansevoort is a nine-story building dating to 1912 that underwent about a $20 million renovation in 2015 led by Fogarty Finger, and it houses retail names as well as office tenants. That mix gives incoming tech and AI users immediate access to neighborhood services and visibility in a tightly branded pocket of the West Side, according to The Real Deal.
Why AI Tenants Are Betting On Manhattan
Industry observers point to talent density, proximity to clients and venture capital as key reasons AI firms are committing to Manhattan addresses, even when cheaper options exist elsewhere, per reporting by Bloomberg. That dynamic has concentrated demand on high-quality, ready-to-occupy floors where teams can scale quickly.
Landlords Are Lending Space And Flexibility
Owners and brokers say they are increasingly willing to place AI tenants into short-term subleases or plug-and-play suites to capture growth-minded companies, a tactic documented by Bisnow. For landlords it is a way to monetize vacant floors while meeting startups’ demand for flexibility and speed to occupancy.
Moloco’s Meatpacking footprint is a small but telling data point. The AI land grab now touches boutique neighborhoods as well as Midtown trophy towers, and more nimble subleases and short-term arrangements are likely to appear across Manhattan as companies and landlords work to balance growth plans with flexibility.
