Distyl AI Expanded Manhattan Office Lease
The artificial intelligence firm has doubled its footprint at 135 Madison Avenue in New York City.
Updated on Sept. 22, 2026 in Commercial
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Distyl AI has leased the entire ninth floor at 135 Madison Avenue, bringing its total occupancy in the building to 30,076 square feet. The firm, which maintains its headquarters in San Francisco, required more space to accommodate its growing operations.
Why it matters
This expansion represents a significant increase in the company's New York footprint just months after its initial arrival in the building. It reflects the firm's ongoing efforts to scale its physical presence within the competitive Manhattan office market.
The expansion lease at 135 Madison Avenue includes an asking rent of $55 per square foot. Both the initial 10th-floor lease and the new ninth-floor space are set to expire in January 2028.
The players
Distyl AI
This company is an artificial intelligence firm headquartered in San Francisco that has been expanding its presence in New York City.
Max Koeppel
He is a real estate professional who represented the landlord in the transaction at 135 Madison Avenue.
Justin Pollner
He is a real estate negotiator who acted on behalf of Distyl AI during the leasing process.
Steven Rotter
He is a real estate negotiator who worked alongside Justin Pollner to secure the expansion for Distyl AI.
The details
Distyl AI initially established its presence at the 135 Madison Avenue property in December 2025 by leasing 15,038 square feet on the 10th floor. Max Koeppel represented the landlord in the transaction, while Justin Pollner and Steven Rotter negotiated on behalf of the tenant.
Timeline
Distyl AI established its San Francisco headquarters in 2022.
The firm first leased space at 135 Madison Avenue in December 2025.
The expansion lease was finalized in September 2026.
Both current leases at the building expire in January 2028.
Culture Shift
The expansion of Distyl AI into a larger New York office follows the established trend of San Francisco-based AI startups building significant secondary hubs in Manhattan. This shift signals a long-term commitment to integrating talent across both major technology corridors.
The firm's decision to increase its footprint contributes to the continued commercial activity within the NoMad neighborhood. Readers should note how large-scale lease commitments in this district influence local property demand and neighborhood business traffic.
The takeaway
Growing technology firms are increasingly securing multi-floor spaces to anchor their East Coast operations. For businesses navigating the current market, multi-year lease synchronization can offer greater flexibility and streamlined facilities management.
Further reading
For more information on the evolving office market in the city, visit the New York City Commercial section.
Source note: This article includes information reported by Commercial Observer.
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