Knotel Sued a Second Time for Missed Rent Payments
For at least the second time during the COVID-19 pandemic, flexible workspace brand Knotel has been sued by a building owner for missed rental payments.
Knotel allegedly owes $169,040 to Brooklyn-based Noam Management after it stopped paying rent from March until June for its space at 25 West 26th Street. This was at the time emergency measures were put in place to halt the spread of the coronavirus in New York City.
Knotel signed a 10-year lease for the entire third through sixth floors of the building in 2017.
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This is at least the second court suit Knotel has faced over missed payments during COVID-19, after it was reportedly sued for $55,636 in missed rent by a San Francisco landlord.
Like many flexible space operators, Knotel has been forced to furlough and lay off employees as well as cut salaries, while many of its clients are seeking rent breaks in a bid to cut costs.
Knotel also plans to give back 20 percent of its 5-million-square-foot portfolio to landlords because of the pandemic.
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