Case Study Rise
Location 43 West 23rd St.
Powered by Barclays, Rise has played a key role in the growth of fintech in New York City. They too are growing and needed to expand beyond the 2 existing floors in their building, without disrupting the 60 companies sitting in their space. When the tenant occupying 3 additional floors in their building was set to leave, Rise knew they wanted to take that space for a total of 5 floors. Unfortunately, the landlord knew how badly they wanted it. That's where Vicus came in.
Powered by Barclays, Rise is a collaboration hub created with the specific purpose of incubating aspiring fintech startups. Launched through a partnership with Richard Branson’s youngest CEO, James Layfield, Rise leased their first New York space in 2015: the 2nd and 6th floors at 43 West 23rd St. The company experienced massive success, so that by 2018 they were home to more than 60 startups, and a waiting list a mile long.
With this growth, it comes as no surprise that when the 3rd, 4th, and 5th floors in their building opened up, they saw it as the perfect opportunity for much-needed expansion; having invested millions of dollars into the design and buildout of their existing floors and the cost of relocating, Rise wanted to avoid moving into an entirely new space both for their business and their bottom line.
The challenge for Vicus in negotiations was that the landlord knew just how badly Rise wanted to stay. That's where Vicus came in.
With a landlord who knew just how badly Rise wanted this space, it seemed impossible that they would get a fair deal at 43 W. 23rd St – however, as luck would have it, 100,000 square feet went on the market nearby, creating the perfect opportunity to show the landlord that he wasn’t the only game in town.
We knew that by securing a good deal at the second building, we would have a better chance at fighting the landlord’s high prices at the first. After extensive negotiations, we brought the alternate offer deal terms to Rise’s original landlord to create what we call a ‘best alternative to a negotiated agreement’. With tenant representation from Vicus and JLL, Rise left the proverbial deal table with millions of dollars in savings and the invaluable opportunity to expand into their current space. We call that a win-win.
WHERE THEY ARE NOW
The company now occupies 4,000 square feet at 10 East 53rd St.
We would love to be a resource for you. For more information, please call Andrew Stein at 212-880-3745 or Bert Rosenblatt at 212-880-3746.