One of the largest coworking expansions to date is taking shape in Midtown Manhattan, as Industrious increases its presence at Tower 49 to nearly 292,000 square feet.
The project, expected to be completed this year, will make it the largest single flex office location in the world, according to Commercial Property Executive.Â
A Bigger Bet on One Building
Industrious already occupies about 240,000 square feet in the 45-story tower after taking over former WeWork space in 2024. The expansion will bring its total to 18 floors, up from 16.
Tower 49, located on East 49th Street between Madison and Fifth Avenue, spans roughly 600,000 square feet and has long been home to traditional office tenants, including financial firms and investment groups.
Landlord Adds Amenities to Compete
The building’s owner, Kato International, is upgrading parts of the property alongside the expansion.
Plans include a conference center that can host up to 120 people, flexible meeting rooms, a café, and a redesigned sky lobby with lounge space.
These additions are aimed at making the building more usable for companies that rely on shared space and in-person collaboration.
Flex Office Keeps Expanding in New York
The deal adds to Industrious’ growing footprint across New York City. Since being acquired by CBRE Group in 2025, the company has continued signing leases, including a recent location in NoMad.
Coworking operators have been taking over larger blocks of space as companies adjust how they use offices. Many are keeping smaller headquarters while relying on flexible locations for meetings, team gatherings, and overflow space.
What It Signals
Large-scale deals like this point to how flex office is being used differently. Instead of small suites or short-term overflow, operators are securing entire sections of buildings and building them out with meeting space, amenities, and services aimed at bigger clients.
For landlords, filling space with a single operator can help stabilize occupancy in a market where demand for traditional long-term leases has been uneven.
