Modal Labs Leases 157,000 Square Feet at 32 Sixth
The AI cloud company will occupy three floors of a Tribeca office tower as it outgrows its current Spring Street space.
Updated on Nov. 6, 2026 in Remote Work
Modal Labs has signed a 157,000-square-foot lease at 32 Sixth Avenue in Tribeca, covering three floors of the 1.2 million-square-foot tower. The company plans to relocate from its current office at 233 Spring Street in mid-2027.
Why it matters
The lease reflects rapid growth at Modal, which announced a $750 million Series D round at a $15.75 billion valuation in October, less than five months after a $355 million Series C. The additional space is intended to accommodate future expansion in New York City's commercial office market.
The 157,000-square-foot lease compares with a building occupancy of 57 percent as of June and a Downtown average asking rent of $62.68 per square foot in October. Modal's asking rent and lease term remain undisclosed, so its total cost for the space is unknown.
The players
Modal Labs
Modal Labs is an AI cloud company that has raised substantial venture funding and is expanding its New York City footprint.
Rudin
Rudin is a New York City real estate firm that owns and manages 32 Sixth Avenue.
The details
Modal Labs will occupy three floors at 32 Sixth Avenue, where Telx is the largest tenant with 146,000 square feet under a lease through 2033. Rudin, the building's owner, secured a four-year extension on its $425 million commercial mortgage-backed securities loan, pushing maturity to November 2029, and committed $100 million to capital improvements.
Timeline
December 2025: 32 Sixth Avenue was marked down to $340 million.
2025: Rudin secured its four-year loan extension.
August 2025: Dentsu Holdings USA relocated out of the building.
October: Modal announced its $750 million Series D and the lease was first reported.
Mid-2027: Modal plans to relocate from 233 Spring Street.
Market Landscape
Modal's lease is among the Manhattan office transactions tracked in CBRE's October Manhattan office report, which documents leasing activity in the city's office market. The deal shows AI-focused tech firms taking space in Downtown towers that are otherwise facing elevated vacancy and falling valuations.
For workers and commuters in Tribeca and Downtown Manhattan, the lease adds several hundred new employees to the neighborhood's daytime population once Modal relocates. Office landlords in the area face continued pressure, with the building valued at $340 million and occupancy at 57 percent.
The takeaway
Expansion by AI-focused companies is helping absorb office space in Downtown Manhattan, but landlords continue to contend with weak occupancy and reduced building values.
What happens next
Modal Labs plans to relocate from 233 Spring Street to 32 Sixth Avenue in mid-2027.
Further reading
Explore more on Remote Work and how companies are rethinking their office footprints.
