AI firm Modal Labs leases 157K sq ft at Rudin's 32 Sixth Avenue

What happened

AI infrastructure company Modal Labs signed a 157,000-square-foot office lease at 32 Sixth Avenue in Tribeca, a company spokesperson said. The building is owned by Rudin. The Real Deal reported the story on 11/05/2026. It noted that the deal first appeared in CBRE's Manhattan office report for 10/2026. The lease covers three floors of the 28-story, 1.2 million-square-foot tower. Asking rent and lease length were not disclosed.

Modal plans to move from Stellar Management's 233 Spring Street in mid-2027. The company has about 140 employees and is taking extra room for future growth. In 10/2026, Modal announced a $750 million Series D funding round at a $15.75 billion valuation. That came less than five months after a $355 million Series C.

The building has struggled with vacancies since the pandemic. According to Morningstar Credit, its value was marked down to $340 million in 12/2025. That is a 56 percent drop from a $770 million valuation in 2015. Fitch Ratings put occupancy at 57 percent in the most recent figure cited. Rudin got a four-year extension on its $425 million commercial mortgage-backed securities loan, pushing maturity to 11/2029, with two more one-year extension options. As part of that deal, Rudin committed $100 million to capital improvements. These include a renovated lobby, an on-site leasing center and upgraded ground-floor retail.

Rudin bought the former AT&T headquarters in 1999 for $150 million and later invested $100 million in it. The largest tenant is tech company Telx, with 146,000 square feet under a lease running through 2033. CBRE reported an average Downtown asking rent of $62.68 per square foot for 10/2026.