Company assumes broader operational role at one of the world’s largest coworking hubs
Industrious, the flexible workspace company acquired by CBRE last year, is set to establish one of the largest single coworking locations in the world at its headquarters in Manhattan.
The New York-based company has increased its space at Tower 49, located at 12 E. 49th St., growing from 240,000 square feet across 16 floors to 291,600 square feet spanning 18 floors. Alongside this expansion, the firm has also taken on a more significant operational role within the building.
This growth follows Industrious taking over office space previously occupied by WeWork, which had given up the lease during its efforts to exit Chapter 11 bankruptcy in 2024.
With its expanded footprint, the Tower 49 location is now among the largest flexible office spaces globally. Its size is comparable to WeWork’s site at Two Southbank Place in London, which measures approximately 293,000 square feet, based on CoStar data.
According to CEO Jamie Hodari, who co-founded Industrious in 2012, most of the company’s locations in the United States and United Kingdom typically range between 30,000 and 50,000 square feet—making this expansion particularly notable.
The lease arrangement is structured as a management agreement, allowing Industrious to share revenue or profits with the building’s owner, Kato International. This model enables the company to avoid traditional leasing risks. Hodari has previously noted that most Industrious locations follow this approach, and the business achieved profitability by the end of 2023.
Industrious is now responsible for overseeing the overall tenant experience across the building, which exceeds 600,000 square feet. Meanwhile, Kato International plans to introduce two additional amenity floors featuring a conference center and a social lounge. Industrious described its expanded responsibilities as managing key aspects of the workplace experience, including community engagement, events, food and beverage services, space bookings, and branding.
The demand for flexible office space continues to rise as companies adapt to hybrid work models shaped by the pandemic. Businesses increasingly prefer ready-to-use workspaces that support collaboration. A study by Cushman & Wakefield found that around 55% of global occupiers already use flexible office solutions, with another 17% planning to increase adoption.
Looking ahead, Industrious aims to double its deal activity in New York this year after expanding its footprint by 58% in 2025, adding more than 30 new locations. The company now operates over 250 locations across more than 85 cities worldwide. Meanwhile, WeWork is also returning to growth mode in New York.
Source: Original reporting by Andria Cheng, CoStar News.
