Industrious Takes Over WeWork's New York City Headquarters in Midtown

Industrious has taken over WeWork Inc.’s former headquarters at Tower 49 in midtown Manhattan. The company signed a 10-year agreement to manage approximately 240,000 square feet of office space across 16 floors at Kato International’s 12 E. 49th St.

Strategic Shift Following WeWork's Bankruptcy

This development follows WeWork’s recent exit from bankruptcy, which allowed it to shed billions in debt and terminate money-losing leases. In contrast to WeWork’s approach, Industrious focuses on management contracts with landlords rather than direct leases. This strategy helps distribute profits and minimize risk for both parties.

Industrious's Growth and Expansion Plans

Industrious has experienced significant growth, with its revenue tripling from 2019 to 2023. The firm has been actively scouting new locations, including several former WeWork sites. CEO Jamie Hodari mentioned that Industrious has considered around 70 former WeWork spaces, but only proceeded with a select few, including this one.

Innovative Approaches and New York City Expansion

The acquisition of the former WeWork space in New York presents an opportunity for Industrious to experiment with new products and concepts, such as event programming and modular office designs. The firm was particularly drawn to the building and location, and, along with the landlord, committed substantial investment to upgrade the space.

Flexibility in a Changing Office Market

The shift in demand for office space since the pandemic has benefited coworking firms like Industrious, as tenants seek more flexible and smaller office footprints. Hodari highlighted that recent years have been advantageous for flexible office solutions, with landlords increasingly recognizing the need for such options to remain competitive.