Phia, an artificial intelligence-powered shopping assistant co-founded by Phoebe Gates and Sophia Kianni, has leased 9,000 square feet of office space at 37 East 18th Street in Manhattan. The property is owned and managed by Zar Property.
The startup moves into the Flatiron District location as it expands its operations. Gates, the youngest daughter of Microsoft co-founder Bill Gates, launched Phia alongside her Stanford University classmate Kianni. The company develops AI technology designed to enhance the online shopping experience for consumers.
The lease represents a significant commitment from the two-year-old firm, which has grown its headcount and now requires dedicated office infrastructure in one of Manhattan's most competitive tech hubs. Zar Property secured the tenant for its East 18th Street asset, a building that attracts early-stage and growth-stage technology companies.
For commercial landlords like Zar Property, this lease deal signals continued tenant demand in the Flatiron submarket despite broader commercial real estate headwinds. Tech startups backed by prominent founders and investors continue to occupy premium Manhattan office space, even as hybrid work arrangements reduce absolute square footage demand across the broader market.
The lease also reflects the sustained interest from venture-backed companies in establishing physical presences in New York rather than relocating to secondary markets. Phia's decision to expand its footprint suggests the company has secured follow-on funding or achieved revenue milestones that justify the real estate commitment.
For other building owners in the area, the Phia lease demonstrates that well-capitalized startups with founder recognition still lease significant blocks of space. Landlords who can market to this demographic continue to achieve deals. The transaction underscores the bifurcated nature of Manhattan's office market, where prime space in desirable neighborhoods remains attractive to growth-stage technology