Coinbase is abandoning its Hudson Yards workspace and moving to new offices in New York, sources familiar with the matter told The Block.
On Monday Commercial Observer reports As for the new lease deal involving the cryptocurrency exchange, the real estate trade publication reported that the exchange this month signed an 11-year lease for a 67,208-square-foot space at One Madison in Manhattan’s Flatiron district. A source told The Block that Coinbase will not maintain an office at the leased 55 Hudson Yards starting in 2021.
Coinbase did not comment on why it moved to a new office that is roughly twice the size of its Hudson Yards space. Sources at The Block said the company has not changed its remote work policy or signaled that it will grow its team in New York.
According to sources, there was relatively no significant change in the number of people at the exchange this year. The company had 3,416 employees as of the end of 2023, according to its annual financial report filed with the Securities and Exchange Commission.
It’s unclear whether Coinbase will break its existing lease at Hudson Yards or stay there until it expires. Coinbase did not immediately respond to The Block’s inquiries about the matter.
Coinbase did not disclose One Madison’s monthly rent. But sports betting company Flutter Entertainment signed a lease this month for space in the same building for $170 per square foot, Commercial Observer said. reported.
By comparison, the building housing the roughly 30,000-square-foot Hudson Yards offices boasts average rents just north of $100 per square foot, Crain’s New York reported, citing an independent study.
Coinbase’s move is happening at a time when tenants can sign new leases as Manhattan real estate developers offer concessions to lower New York City’s high office vacancy rate. As of 2023, Big Apple landlords were offering concessions averaging 24% of their rent demands to office tenants who signed a previous lease or ordered a new lease for at least seven years for properties over 20,000 square feet. Commercial real estate trade publication CoStar reportedCiting research from real estate firm Avison Young
The exchange’s workspace conversion comes months after federal regulators cracked down on the company. Last June, The SEC charged that Coinbase operated as an unregistered national securities exchange, broker, and clearinghouse.
Despite these issues, the company’s finances are on the mend and are showing significant improvement this year amid a surge in cryptocurrency prices. Coinbase posted its first profit in two years in the first quarter of 2024, according to public data. Meanwhile, the company’s stock price has surged 68% over the past year to $225.06 per share.
This isn’t the only leasing deal Coinbase has signed in recent months. Last summer, the company began leasing 40,000 square feet of space at SFGate in California’s Bay Area. reported.
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