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Category ArchiveIndustrious

Industrious Moving HQ to Union Square From Brooklyn With 14K-SF Deal

Bye bye, Brooklyn!

Flexible office space provider Industrious has signed a 14,484-square-foot lease at SL Green Realty Corp.’s 215 Park Avenue South to relocate its headquarters to the same building where it has its only Manhattan location, Commercial Observer has learned.

The company will move to the entire 13th floor of the 20-story property between East 17th and East 18th Streets, according to a spokeswoman for Industrious. It already leased the entire 17,500-square-foot 11th and 17,255-square-foot 12th floors in the building for roughly 35,000 square feet for shared offices for its members, as CO previously reported. All told, Industrious will occupy more than 49,000 square feet of the 330,000-square-foot property.

The new transaction is for three years and the asking rent was $70 per square foot.

Industrious has been growing rapidly and the company recently landed $80 million in a Series C funding led by Fifth Wall Ventures and Riverwood Capital, as CO reported last month.  

“We’ve had a very busy year and are excited to continue our momentum coming out of our $80 milion funding news a few weeks ago,” Industrious President Justin Stewart said in a prepared statement to CO. “To date, our national team has worked out of the Industrious Brooklyn space, but at the beginning of this year we outgrew our space there.”

The majority of Industrious’ 80 employees will relocate from the headquarters at
594 Dean Street between Carlton and Vanderbilt Avenues in Prospect Heights where it has just under 2,000 square feet for its corporate offices, according to a spokeswoman for the company.

Industrious has 35 locations across the country, and recently reached a milestone with a total of 1 million square feet of space.

CBRE’s Sacha Zarba and Alice Fair handled the deal for the tenant with Katharine Lau, the director of real estate for Industrious, . A spokeswoman for the brokerage did not immediately return a request seeking comment from Zarba. Howard Tenenbaum and Gary Rosen represented SL Green in the transaction in-house.

A spokesman for the landlord did not immediately provide a comment.

Source: commercial

The Plan: Industrious Touts Sophistication in Union Square Expansion

Flexible office provider Industrious—which has attracted companies such as Hyatt Hotels Corporation, Chipotle and Mashable to outsource their workplaces—tries to give a healthy dollop of sophistication to its spaces.

So when the company decided to expand its only Manhattan location on the 12th floor at SL Green Realty Corp.’s 215 Park Avenue South between East 17th and East 18th Streets by taking the 11th floor, Industrious configured the new space with the same simple and elegant designs found on the 12th floor. That also meant no foosball tables, arcade machines or mini-basketball shooting games were added.

“It’s a professional environment. Playfulness is not the priority,” Eivind Karlsen, the head of design at Industrious, told Commercial Observer during a tour of the new space. “It’s about how are you working throughout the day.”

At the front of the 17,500-square-foot 11th floor is the pantry (which was in the back of the 12th floor). That is the first thing members, guests and prospective clients see as they exit the elevator.

“The first impression, whether you are a guest of an Industrious member or a client, is important,” Karlsen said.

And since tenants are more focused on hospitality these days, Industrious designed elements that would make one feel more at home.  

“We designed it more residential,” Karlsen said. “It has that sort of cozy feel. You’ll see more greenery. It feels like an apartment.”

The pantry features marble countertops, wooden cabinets, sleek appliances and a variety of seating options. And the residential vibe can be felt strongly in the lounge space that flanks the pantry, as there are sofas and other kinds of plush seating, carpeting, plants, books and ambient lighting.

The 11th floor, which Industrious has occupied as of January, has room for around 140 people in its 40 offices as the suites can accommodate between one to 10 persons.

In addition, the new space has two conference rooms, two “huddle” meeting rooms, three small rooms for private phone calls and a small glass-less room with one chair and a small table called the “focus room” (for when you want to be left alone). Exposed ceilings and concrete floors grace the expanse and there are audio reduction panels in the common areas.

The offices are furnished with wooden tables that have blackened steel legs. The new internal staircase, which joins the two floors, also features blacked steel framing. It is a reference to Industrious’ Brooklyn roots.

It’s a “metaphor of the Brooklyn Bridge,” Karlsen said. “We are bridging Manhattan to Brooklyn.”

Source: commercial

Industrious Raises $80M in Funding Co-Led by Fifth Wall, Riverwood

Rapidly growing Brooklyn-based flexible workspace provider Industrious, which has attracted members from Hyatt, Instacart, Chipotle, Fullscreen, Mashable and Pivotal, is about to get even bigger.

After tripling the number of its locations in the U.S. to 35 over the past three years, Industrious has completed its latest fundraising round and pulled in $80 million in Series C funding co-led by Los Angeles-based Fifth Wall Ventures and Riverwood Capital, according to an Industrious news release today.

The company has now raised a total of $142 million since its founding in 2013, according to a spokeswoman. It plans to further its expansion by adding about 30 more locations this year. Also Industrious is projecting its revenue growth will triple this year, according to Jamie Hodari, a co-founder and the CEO of Industrious. He also said that in 2018, the company plans to launch an app that will help connect tenants to events. He declined to go into further detail about the product.

“Our network is growing very quickly and that is a capital intensive proposition,” Hodari told Commercial Observer. “We have to be able to serve our customers where they are, wherever that is across the country.”

img 0036 Industrious Raises $80M in Funding Co Led by Fifth Wall, Riverwood
Industrious plans to open many new locations around the country this year. Photo: Industrious

Other investors in the funding round include Alrai Capital, Outlook Ventures, Rabina Properties, Schechter Private Capital and Wells Fargo Strategic Capital, the release indicates.  

Fifth Wall, a venture capital firm that invests in burgeoning real estate companies, is backed by major property owners such as Hines, mall-operator Macerich, Prologis and Rudin Management Company. (Industrious is not the first coworking provider that Fifth Wall has invested in, but it is the first that has been publicly announced.) It has already invested in VTS, Appear Here, WiredScore and Enertiv, as CO reported first in January.

The company chose to invest in Industrious because of its ability to attract Fortune 500 companies to its model.

Industrious does not create flashy spaces designed with startups in mind, but implements sophisticated designs with actual offices—and a handful of coworking desks—at its locations.

“It’s an elegant, simple, refined aesthetic that attracts large companies,” said Brendan Wallace, Fifth Wall’s co-founder and managing partner.

Wallace added that Fifth Wall also selected Industrious because he believes the office space provider partners more with landlords than do its competitors, based on the structure of the lease agreements it signs.

The Fifth Wall co-founder declined to elaborate, but said Industrious is different than say a WeWork, which signs a lease and then fills its spaces with members whose collective fees work out to much more than the price of the original lease. In WeWork’s case, the coworking giant receives more upside than the landlord does for the space. (A spokesman for WeWork declined to comment.)

“I think that landlords have grown increasingly cautious to coworking players, including WeWork,” Wallace said. “What [Fifth Wall’s investors] were looking for was a coworking partner to deploy across their national footprint.”

Source: commercial

Coworking Company Industrious Grows Union Square Digs to 35K SF

Brooklyn-based Industrious, a coworking space provider with locations around the country, is doubling the size of its lone Manhattan offices, Commercial Observer has learned.

The company, which offers shared work spaces and private suites, signed an early renewal and expansion of its lease at SL Green Realty Corp.’s 215 Park Avenue South, expanding its footprint to 34,755 square feet just a year after it opened the Union Square outpost.

Industrious already occupies the entire 17,255-square-foot 12th floor of the building and will add the 17,500-square-foot 11th floor of the tower between East 17th and East 18th Streets. The new lease is for 15 years, according to a spokeswoman for the company. The asking rent for space in the building is $70 per square foot, according to a spokeswoman for the landlord.

Since opening last year, the location has been very successful, according to Katharine Lau, the company’s director of real estate.

“Manhattan has been a fantastic market for Industrious,” Lau said in a prepared statement. “Many of our members have increased employee headcount, some four to five times, since working from our workspace on the 12th floor.”

Industrious opened its first New York City location in the Prospect Heights section of Brooklyn at 594 Dean Street between Carlton and Vanderbilt Avenues in 2015. The company maintains just two locations in the city. It has 25 active locations around the country. 

Industrious’ in-house real estate team represented the company in the transaction, while an SL Green team of Howard Tenenbaum and Gary Rosen handled the negotiations for the landlord.

A representative from SL Green did not immediately return a request seeking comment via a spokesman.

Source: commercial