WeWork Inc. recently lost its former New York City headquarters to competitor Industrious.
Industrious secured a 10-year management contract for office space at Tower 49 in midtown Manhattan, where WeWork previously operated.
WeWork moved its headquarters to Union Square in its final days of bankruptcy. WeWork’s court-approved exit from bankruptcy enabled them to cut debt and dispose of loss-making leases, according to Bloomberg.
Now Industrious will manage nearly 240,000 square feet across 16 floors at 12 E. 49th St., marking a significant expansion for the company. Unlike WeWork, Industrious uses management contracts rather than leasing properties directly, a model which has seen its revenue triple from 2019 to 2023. The company is actively looking to take over former WeWork sites, having considered around 70 such locations.
Industrious CEO Jamie Hodari highlighted the opportunity to use the new Manhattan space for experimenting with products and designs, emphasizing the building’s appeal and the collaborative investment with the landlord for upgrades.
Despite a global downturn in office space demand post-pandemic, coworking firms like Industrious are benefiting from a shift towards smaller, more flexible office arrangements.
This development is part of a broader set of changes for WeWork as it emerges from bankruptcy under new leadership. Software tycoon Anant Yardi’s firm emerged as WeWork’s largest shareholder following the court’s decision to transfer control to creditors.
