Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
Despite the unpredictability of the office industry, Industrious recently opened a 17,000 square feet space in New York City’s Carnegie Hall Tower.
This is the third location the flexible office firm has opened in the city since the beginning of the pandemic, with plans to open two more locations over the next few months.
Additionally, the company plans to open part of its 100,000 square foot space at One Penn Plaza by the end of the year.
Currently, Industrious operates over 100 workspaces that span over 3 million square feet and will expand that growth by an additional 1 million square feet this year.
The company has also revealed it would be taking over spaces that have been abandoned by their competitors, such as WeWork. The company cites its landlord-management agreements as being the reason it has been able to stay afloat throughout the pandemic.
“We partner with landlords on these spaces, so there’s not a high fixed rent component,” said Doug Feinberg, director of real estate at Industrious. “When you’re in a downturn or you’re in a pandemic, your unit might not be performing as well, but in our case, we share on the upside, and we share on the downside.”
Industrious’ business model is similar to the hotel industry, where the tenant occupying the space gets paid a management fee and shares the profits with landlords.
Doing so allows Industrious and their landlords to work together to navigate the challenges of operating through a health crisis, according to CEO Jamie Hodari.
