Workspace Provider Knotel Selects First Boston Location
Originally published in Boston Business Journal
Flexible office company Knotel Inc. has found its first Boston location.
Knotel will lease 26,000 square feet on the first and second floors of 239 Causeway St., a low-rise brick office building near North Station.
"Boston is the ideal fit for Knotel's enterprise clientele," Eugene Lee, Knotel's chief investment officer and global head of real estate, said in a statement. "We continue to see strong customer demand in that city, and we expect to be in many more buildings there in 2020."
Knotel's expansion into Boston comes in the wake of the coworking giant WeWork's implosion, wherein its valuation plummeted from $47 billion to $8 billion, its CEO was forced out and thousands of employees may be laid off. WeWork is the second-largest office tenant in Boston.
Smaller flexible office concepts are finding a foothold in the city and region, however, with concepts including Workbar and Staples Studio targeting suburban markets for growth. Workbar recently opened a spot at 24 School St. in Boston's Downtown Crossing.
Knotel does not offer a cost per desk or month-to-month deals. Rather, it offers private, full-floor workspaces tailored to a company's brand, culture and working style. Companies typically stay in a Knotel space for at least two years.
"Knotel has demonstrated itself as a valuable partner to owners in more than two dozen office markets and we are excited to be their first partner in Boston," said Jodie Zussman, president of Boston Development Group, which owns 239 Causeway St., in a statement. "Several global enterprise tenants have recently migrated to North Station with the emergence of new Class A and unique, refurbished properties close to world-class amenities. With the arrival of Knotel, North Station continues to reflect what will drive economic vitality and attract top enterprises and workforce talent in the years to come."