AI Startup Clay Signs 163K SF Office Lease at 11 Madison Avenue

Artificial intelligence companies are emerging as an increasingly important source of demand for Manhattan office space, and a new large lease in Midtown South highlights that trend.

AI sales platform Clay has signed a 10-year lease for approximately 163,000 square feet at 11 Madison Avenue, a major office tower owned by SL Green Realty and Prudential Financial.

The deal represents one of the larger office leases tied to the rapidly expanding AI sector and brings the 2.3-million-square-foot building to 100 percent leased occupancy.

Clay will occupy the entire 14th and 16th floors along with part of the 15th floor of the 30-story office tower.

The asking rent for the space was reported at roughly $90 per square foot, according to market sources.

Rapid Growth Drives New Headquarters

The lease reflects Clay’s rapid expansion as the company continues to scale its AI-powered sales platform.

Founded less than a decade ago, the company recently reported reaching $100 million in annual recurring revenue, prompting the need for significantly larger office space.

Clay will relocate from its previous office at 111 West 19th Street in Manhattan.

Brokerage firm Newmark represented both the tenant and landlord in the transaction.

AI Companies Increasingly Active in Manhattan Leasing

The Clay lease is part of a broader wave of office leasing activity from artificial intelligence companies across New York City.

AI firms have rapidly expanded their office footprints in recent years:

• roughly 325,000 square feet of AI-related leases were signed in Manhattan in 2024
• leasing activity more than doubled to approximately 810,000 square feet in 2025.

These companies are increasingly seeking large blocks of space in high-quality office buildings, particularly in Midtown South neighborhoods such as Flatiron and Union Square.

A Landmark Midtown South Office Tower

11 Madison Avenue occupies an entire block between Madison Avenue and Park Avenue South, and East 24th and 25th Streets, overlooking Madison Square Park.

The property is one of the largest office buildings in the submarket, containing roughly 2.3 million square feet of office space.

Major tenants in the building include companies in finance, media, and technology, as well as the three-Michelin-star restaurant Eleven Madison Park at street level.

Final Thoughts

The Clay lease underscores how technology and AI companies are helping drive new demand for office space in New York City.

While many older office buildings continue to face elevated vacancy rates, modern, well-located properties are attracting growing technology tenants seeking collaborative workspaces close to talent pools.

For Midtown South landlords, the expansion of AI firms could represent a key source of office leasing momentum in the coming years.

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